BHP Ltd., Melbourne, said this week the construction of the two shafts and associated infrastructure at its Jansen potash site in Saskatchewan is now 96 percent complete, up from 93 percent in August. The work remains on track for an expected completion in the 2022 calendar year, the mining group reported in its Operational Review for the quarter ended Sept. 30, 2021.
BHP’s Board in August gave its approval for the Jansen Stage 1 (Jansen S1) project and for further capital expenditure of US$5.7 billion (GM Aug. 20, p. 1). Stage 1 is expected to provide production capacity of some 4.35 million mt/y of potash, with construction expected to take around six years. First ore from Jansen S1 is expected in the 2027 calendar year, followed by a ramp-up period of two years.
The mining major has already spent US$4.5 billion (pre-tax) on Jansen, including US$2.972 billion to finish the current investment program to complete the two shafts at Jansen and for associated infrastructure and utilities at the site, as well as engineering and procurement activities, and preparation works related to Jansen S1 underground infrastructure.
BHP also said this week its plans to unify its dual listed company (DLC) structure under its existing Australian parent company remain on track to occur in the March 2022 quarter, if all approvals are received
The mining group announced its intention to unify the DLC structure in August. BHP’s DLC structure has two parent companies (BHP Group Ltd. and BHP Group Plc) operating as a single economic entity and was established with the BHP and Billiton merger in 2001.
BHP said unification would result in a corporate structure “that is simpler, more efficient, and improves portfolio flexibility to maximize value for shareholders over the long-term, including facilitating a simpler separation of the Petroleum business.”
It said “constructive engagement” with regulators and third parties for the unification continues, and that the process remains “on track.”