“The strategy is to be the most cost-effective mine possible,” she said in an interview. “Even with depressed prices, we’ll be profitable.”
BHP remains optimistic on Jansen even though potash prices have tumbled more than 60% from highs seen two years ago. Prices soared in early 2022 after sanctions on Belarus and Russia’s war in Ukraine stoked fears of supply shocks in a tight market. The two nations are among the top producers of potash and, combined with Canada, account for two-thirds of the global trade.
The world’s biggest miner had already committed $5.7 billion to building the first stage of Jansen in the western Canadian province of Saskatchewan back in August 2021. Two years later, BHP earmarked an additional $4.9 billion for an expansion due to its confidence in the potash market. The spending is on top of an earlier $4.5 billion investment in the area.
Since Jansen’s approval, flows of fertilizer from…
