BHP Ltd., Melbourne, said the Jansen potash mine project under development in Saskatchewan is tracking to plan, with the shaft project now 98 percent completed. The mining group in January commenced contract awards for the Jansen Stage 1 project (GM Jan. 21, p. 34).
It said this week around US$1.2 billion in contracts, out of the US$5.7 billion investment, already are awarded, including the Port Engineering, Procurement, and Construction Management (EPCM) contractor.
BHP Canada Inc., a subsidiary of BHP Group, inked an agreement last July with Vancouver-based Westshore Terminals LP, a wholly-owned subsidiary of Westshore Terminals Investment Corp., for the terminal company to provide port services to the proposed Jansen potash mine at its Westshore terminal in Delta, B.C. (GM July 23, 2021). Certain existing infrastructure at the Westshore terminal will be modified to support handling potash at the terminal’s berth 2.
Sweden’s Sandvik Mining and Rock Solutions is also reported to have secured a contract with a total value SEK2 billion (approximately US$215.5 million at current exchange rates) for the Jansen Stage 1 project, according to a Global Mining Review report. The delivery period for the equipment is expected to start in third quarter 2023 and extends to 2026.
As previously reported, the mining group said the Jansen Stage 1 project is currently 3 percent complete. BHP’s Board took the final investment decision to go ahead with Stage 1 last August (GM Aug. 20, 2021). On completion – currently targeted for calendar 2027 – Stage 1 will have capacity to produce 4.35 mt/y to of potassium chloride.
The mining group in its fiscal half-year results statement noted that potash prices have increased sharply over the last 18 months, despite latent excess production capacity. Longer term, it continues to see potash standing to benefit from the intersection of a number of global megatrends: rising population, changing diets, and the need for the sustainable intensification of agriculture.
“The compelling demand picture, and the maturity of the existing asset base, offers an attractive entry opportunity for a world-class opportunity later this decade,” said BHP.
In late January, BHP completed the unification of BHP’s dual-listed corporate structure (GM Feb. 4, p. 30).