LONDON, UK: BHP, the world’s largest mining company, has announced a US$4.9 billion investment to expand its Jansen potash project in Saskatchewan, Canada. The stage two investment will double the production capacity of the project to 8.5 million tonnes per annum, making it one of the world’s largest potash mines.
The investment follows BHP’s approval of US$5.7 billion for stage one of the project in August 2021 and a pre-stage one investment of US$4.5 billion. BHP expects to start producing potash from Jansen stage one in late 2026 and from stage two in 2029.
BHP CEO Mike Henry said the investment reflects the company’s confidence in potash and its growth strategy in Canada. Potash is a key ingredient for fertilisers and is expected to see strong demand as the world’s population grows and farming becomes more sustainable.
Jansen has been designed with a focus on social value and sustainability, with low greenhouse gas emissions, water consumption, and Indigenous employee representation targets. BHP also said it is working with the Canadian and Saskatchewan governments and local communities on shared solutions for the project.
BHP said Jansen stage two has an internal rate of return of 15% to 18% and an expected payback period of six years from first production. The project will also have high underlying EBITDA margins of 65% to 70% due to its low-cost position.
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