Canada Invests C$100 M in BHP Project

Canada’s Minister of Innovation, Science, and Industry François-Philippe Champagne on Jan. 30 announced an investment of $100 million through the Strategic Innovation Fund to support BHP’s C$7.5 billion project to develop its world-leading low-emissions potash mine. The mine, located in Jansen, Sask., is expected to generate the lowest direct emissions of any potash mine in the world.

The Ministry said the mine will ensure that Canada remains a global leader in both potash production and sustainable mining. In addition to critical environmental benefits, it said it would provide long-term benefits for the people of Saskatchewan by creating and maintaining 600 highly-skilled jobs and over 100 co-op terms for students, supporting Indigenous communities through employment and economic opportunities, and cementing Canada’s leadership position in potash production. BHP has signed opportunities agreements with six First Nations.

“This investment shows that our government is committed to the hard-working people of Saskatchewan as well as to Canada’s mining and agricultural sectors,” said Minister Champagne. “Potash is a critical and strategic resource in the global agricultural industry, and we are pleased to partner with BHP on this project to bring strong economic benefits to Saskatchewan. This project will lead to the creation of hundreds of well-paying jobs for Canadians while also encouraging green initiatives in the mining industry.”

“The demand for potash will continue to grow due to a need to increase crop yields to feed a growing population,” said Ragnar Udd, President Minerals Americas, BHP. “Canada has some of the best potash deposits in the world, along with a great skill base and strength in resource development. We know that being successful is not just about what you mine, but also about how you mine, and we take this responsibility seriously.

“Jansen Stage 1 is setting a new standard for potash – not just for Canada, but around the globe. BHP is honored to partner with the government, Indigenous peoples, and the people of Saskatchewan to create a mine that will use the latest technology to deliver a productive, efficient, and sustainable operation that will bring widespread benefits to the region, the people of Saskatchewan, and BHP shareholders for decades to come,” he added.

BHP anticipates the mine to be operational by 2026, with an initial production capacity of 4.3-4.5 million mt/y, increasing Canada’s production by nearly 22% and making it one of the top producers in the world. Jansen has the potential for the addition of three subsequent expansion phases to take the mine to an envisioned eventual production capacity of between 16-17 million mt/y. BHP already has accelerated the Jansen Stage 2 study, which could add another 4 million mt/y (GM Oct. 21, 2022).