Stockholm-based engineering group Sandvik announced on Sept. 3 that it has been awarded a major contract from BHP Group Ltd. for the Jansen Stage 2 Potash Project in Saskatchewan. The contract, which includes potash continuous mining systems, is valued at approximately SEK1.9 billion ($184.7 million).
Sandvik said an order value of approximately SEK500 million ($48.6 million) will be reported in the third quarter of 2024, and approximately SEK400 million ($38.9 million) in each of the second and third quarters of 2025. The remaining order value is estimated to be booked in the second quarter of 2026. The delivery period is expected to commence in 2028 and conclude in 2029.
The new contract follows an SEK2 billion ($194.4 million) contract announced in 2022 for Jansen Stage 1, which is currently being executed. Sandvik said it has been collaborating with BHP for several years to develop the underground mining equipment.
“We are very pleased to continue our partnership with BHP and look forward to further strengthen our collaboration with the supply of our high-performing mining solutions for Stage 2 of the Jansen project,” said Mats Eriksson, President of Sandvik Mining and Rock Solutions.
BHP’s $14 billion Jansen potash mine in Saskatchewan is expected to produce 4.15 million mt/y, with first production targeted for the end of calendar year 2026. BHP in July reported that Jansen Stage 1 remains ahead of schedule and is now 52% complete (GM July 19, p. 27). Jansen Stage 2, which reached final approval in October 2023, is now 2% complete and expected to be up in fiscal year 2029.