Jansen potash project : BHP sanctions stage 1 with $5.7bn investment
BHP has decided to move forward with the first stage of its 100% owned Jansen potash project in Saskatchewan, Canada with an investment of $5.7 billion.
Stage 1 of the Jansen potash mine development is estimated to yield around 4.35 million tonnes of potash per annum. It will also have a basin position with the potential to accommodate further expansions, which will be contingent on studies and approvals.
BHP is targeting the first ore from Jansen potash project stage 1 in 2027.
Mike Henry — BHP CEO said: “This is an important milestone for BHP and an investment in a new commodity that we believe will create value for shareholders for generations.”
Jansen potash project location
Located nearly 140km east of Saskatoon, Jansen Potash Project is said to be contained in the best potash basin in the world and is likely to operate up to 100 years.
BHP said that potash gives it increased leverage to major global mega-trends such as growing population, decarbonization, changing diets, and improving environmental stewardship.
Construction on the potash mine in Saskatchewan is likely to take nearly six years, after which there will be a ramp up period of two years. The project will generate at least 3,500 jobs during the peak construction stage and 600 for its stage 1 operation.
CEO comments on BHP Billiton Jansen Potash Project
Mike Henry added: “In addition to its merits as a stand-alone project, Jansen also brings with it a series of high returning growth options in an attractive investment jurisdiction.
“In developing the Jansen project, BHP has had ongoing positive engagement and collaboration with First Nations and local communities, and with the provincial and federal governments. Jansen is designed with a focus on sustainability, including being designed for low GHG emissions and low water consumption.”
The Jansen potash development stage 1 involves the design, engineering, and construction of an underground potash mine along with surface infrastructure, which will include a processing facility, a continuous automated rail loading system, and a product storage building.
BHP said that the product from the Jansen potash project stage 1 will be dispatched to export markets via Westshore, in Delta, British Columbia. The mining giant said that the potash project also includes funding for the necessary port infrastructure.