BHP Group flagged delays and cost overruns of about 30% for its key Jansen Stage 1 potash project on Friday, even as the miner reported record annual copper production above 2 million metric tons and warned of a decline next year.
The cost blowouts that could be up to $1.7 billion represents a significant setback for BHP, which had accelerated potash production following Russia’s invasion of Ukraine, anticipating higher fertilizer prices due to supply disruptions from sanctioned Russian and Belarusian producers.
The world’s largest listed miner has spent more than a decade trying to break into the potash market as part of its diversification strategy.
BHP attributed the cost blowouts to design and scope changes, inflationary pressures, and lower-than-expected productivity during construction.
BHP said first production from its Jansen Stage 1 potash project in Canada has been pushed back to…
