The Canadian government has offered up to C$100 million (approximately US$77.3 million at current exchange rates) to help BHP Group Ltd. create “the world’s most sustainable potash mine” in Saskatchewan.
The federal government, which officially announced the investment on June 13, is putting the money up to help the Australian mining major to reduce the carbon footprint of the Jansen potash mine under development some 150 km east of Saskatoon. The government funds will also help the group invest in more environmentally-friendly technology at the new mine, including electric vehicles and equipment.
BHP, which recently announced it was looking at options to bring forward first production for its US$5.7 billion Jansen Stage 1 project from calendar 2027 into 2026 (GM May 20, p. 1), said it is committed to reducing emissions.
A CBC News report cited BHP President for Minerals America Ragnar Udd, speaking at the federal funding announcement. Udd said there would be 50% less carbon dioxide coming out of the Jansen mine than a traditional potash mine, and it would use 60% less water than the average mine “in terms of production of potash on a tonne-per-tonne basis.”
He said BHP expects that Jansen will generate the lowest direct onsite emissions intensity of any potash mine in North America.
According to the report, BHP also expects to use 60% less equipment underground for the Jansen mine, while being 2.5 times more productive.
Jansen’s Stage 1 is expected to produce 4.35 million mt/y of potash once fully ramped up. BHP in May revealed it had begun studies of the feasibility and economics of Jansen Stage 2, which would add another 4 million mt/y to the initial planned output (GM May 20, p. 1).
BHP’s Board only gave the final go-ahead for Jansen Stage 1 last August, after nearly a decade of evaluations and deliberations (GM Aug. 20, 2021).
The Jansen potash project has potentially four stages, with an envisioned eventual production capacity of between 16-17 million mt of potash a year.
Udd in an interview with Reuters on June 13 reiterated that BHP is open to taking on a partner for the Jansen potash project, but can also go it alone and is not currently involved in talks with potash rival Nutrien Ltd. He said BHP plans to enter the potash market alone.