BHP Group Ltd. is considering ways it could speed up development of the US$5.7 billion Jansen potash mine in Saskatchewan as potash prices surge amid supply shortfalls. BHP Group Minerals Americas President Ragnar Udd was in Saskatchewan last week evaluating acceleration options, according to a Bloomberg report.
“If there are options to bring it forward – there may be a month or two in it one way or the other – we will take a look at that,” the report cited him as saying in an interview on May 3. But Udd added that BHP isn’t building Jansen “for what may play out in the next six months,” but “rather for its long-term value.”
BHP’s Board gave the final investment approval last August for the Jansen Stage 1 to go forward (GM Aug. 20, 2021). Completion of Stage 1 is currently targeted for calendar 2027. On completion, Jansen Stage 1 will have capacity to produce 4.35 million mt/y of potassium chloride.
The project to complete the excavation and lining of the mine’s production and service shafts and the installation of essential surface infrastructure and utilities is now 99 percent complete, and the Stage 1 project is 5 percent complete, BHP reported last month (GM April 22, p. 30).
BHP plans to market and sell Jansen potash directly to customers rather than selling via the Canpotex export organization, Udd re-iterated. Product will be railed to the Westshore terminal in Delta, B.C., for export shipment.
BHP Canada Inc., a subsidiary of BHP Group, inked an agreement last July with Vancouver-based Westshore Terminals LP for the terminal company to provide port services to the proposed Jansen potash mine at its Westshore terminal (GM July 23, 2021). Certain existing infrastructure at the Westshore terminal will be modified to support handling potash at the terminal’s berth 2.