BHP (ASX, LON, NYSE: BHP) revealed on Friday that the first stage of its Jansen potash mine in the Western Canadian province of Saskatchewan will cost up to 30% more and come online a year later than originally planned.
The world’s largest listed miner now expects to spend between $7 billion and $7.4 billion on the first phase, up from the original $5.7 billion estimate. First production has been pushed to 2027, a full year behind schedule.
BHP cited “design and scope changes”, along with inflationary pressures and lower productivity, as the main reasons for the cost and schedule overruns.
The miner also revealed that the second stage of the Jansen project will now begin production in 2031, two years later than previously planned. BMO analyst Alexander Pearce said the delay of this key expansion, intended to double production capacity and boost returns, was “likely good for potash prices”. He…
