BHP Ltd., Melbourne, this week said it has commenced contract awards for the Stage 1 project of its Jansen potash mine under development in Saskatchewan.
The group’s Board approved the final investment decision to go ahead with Jansen Stage 1 last August (GM Aug. 20, 2021). On completion, Stage 1 will have capacity to produce 4.35 million mt/y of potassium chloride, with initial production targeted for calendar year 2027.
In its operational review for the half-year ended Dec. 31, 2021, published on Jan. 19, BHP also said the project to complete the excavation and lining of the production and service shafts and installation of essential surface infrastructure and utilities at Jansen is now 98 percent complete. Completion of this part of the project remains on track for completion in this calendar year.
BHP said the Stage 1 Jansen project, which is costing the group US$5.723 billion, is now 3 percent complete. The project is one of two major projects the mining major had under development at the end of December 2021.
BHP on Jan. 20 won shareholder support to unify the group’s corporate dual-listed (DLC) structure under its existing Australian parent company, BHP Group Ltd., a move that could facilitate the mining major’s return to large-scale M&A activity (see separate news story this issue).
Both London and Australian investors overwhelmingly approved the move, according to a BHP statement. The mining group needed 75 percent backing from both U.K. and Australian shareholders to get the green light.
BHP’s Board in December had given final approval for the single listing (GM Dec. 3, 2021). The group first announced its intention to unify the DLC structure last August (GM Aug. 20, 2021). Under the current structure, BHP has two headquarters and two main stock market listings, but is run as a single entity under the same management and board.
The mining major’s Board believes unification is in the best interests of BHP shareholders.
“The DLC has served us well for many years. However, its suitability for our organization has diminished over time,” BHP Independent Non-Executive Chairman Ken MacKenzie told shareholders in an EGM teleconference call on Jan. 20 ahead of the vote.
“Today BHP’s portfolio is simpler and focused on growing long-term value from our future-facing commodities. We require a corporate structure that supports this, that is fit for purpose, and we believe now is the right time to take this step.”
The mining major continues to expect completion of the unification on Jan. 31, subject to U.K. Court sanction of the scheme.
The vote will see BHP moved to a primary listing in Australia, but it will retain secondary listings in the U.K., U.S., South Africa, and Australia after unification.
But the unification will also see the U.K.’s FTSE 100 lose its third-biggest company.