BHP Approves Jansen Potash Mine Project with Q2 Earnings Announcement

BHP Jansen
BHP Jansen. Photo provided by BHP.

BHP announced today the company will approve the construction of the Jansen Stage 1 potash project. BHP approved a $7.5 million CAD capital expenditure for the project, known as Jansen S1. It is expected to produce 4.35 million tonnes of potash annually, coming online with first ore in 2027.

“This is an important milestone for BHP and an investment in a new commodity that we believe will create value for shareholders for generations,” said Mike Henry, BHP’s CEO on August 17, 2021. “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.”

Construction on BHP’s Jansen S1 project is expected to take seven years, followed by two years of ramp up to production. During construction, the project is expected to create 3,500 jobs with 600 permanent jobs upon completion. The company also noted their commitment to a gender-balanced labour force that has local Indigenous representation within it. As well, BHP has signed agreements for local and Indigenous business participation during construction and afterward, including procurement and training.

Product from the mine will be shipped to market through Westshore Terminals, a company based in Delta, B.C. The shipping deal was signed in July 2021.

BHP also announced its Q2 earnings, with a record dividend of US$2.00 per share (US $10.1 billion). Profit from operations was US$25.9 billion, an increase of 80 per cent.