More hiccups for BHP’s Jansen Potash Mine Project

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In July, the company announced that stage 1 of the mine site would be pushed back to mid-2027, rather than its original completion goal of 2026.

The company also flagged a cost overrun of up to $1.7 billion, raising the projected total cost of the $5.7 billion project to somewhere between $7 and $7.4 billion.

“The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period,” BHP said in the company’s annual report.

As of now, stage 1 sits at 68 per cent complete.

As for stage 2’s capital expenditure, according to the company, it remains under review, with a capital expenditure estimate planned for the second half of 2026.

“In FY2026 (fiscal year), underground and surface construction works will continue, including structural, mechanical and electrical activities for the dry and wet mill areas,” it said.

The stage 2 expansion is expected to double the mine’s production capacity to approximately 8.5 million tonnes annually.

The Jansen mine is a cornerstone of BHP’s efforts to diversify beyond copper and iron ore, aiming to become the world’s largest potash operation.

by Roman Hayter, CKOM News Staff

More hiccups for BHP’s Jansen Potash Mine Project

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