Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeMiningBHP’s costs balloon US$2 billion for construction of Jansen potash projectThe mine will potentially produce 10 per cent of the world’s annual total of the potassium-rich mineral fertilizer You can save this article by registering for free here. Or sign-in if you have an account.The first stage of the Jansen mine is still set to open in mid-2027 and ramp up to mine 4.14 million tonnes of potash per year. Photo by Michelle Berg/Saskatoon StarPhoenixBHP Canada Inc. says the cost to expand its massive potash mine near Jansen, Sask. has spiked by an additional 40 per cent.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe company on Thursday said the capital budget for stage two of Jansen will be US$6.9 billion instead of US$4.9 billion, because of costly delays and materials.BHP wrote down its project by US$2.3 billion.The company said a two-year extension of the construction schedule has allowed it to review cost and schedule estimates and “implement a response plan” to deal with the added pressures.The Australian mining giant’s Canadian subsidiary is facing a US$15.3-billion bill for the first stage of its potash mine, which is set to become the world’s largest.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againBHP says it would potentially produce 10 per cent of the world’s annual total of the potassium-rich mineral fertilizer.The company announced earlier this year that it would push back the completion date of the second phase for its still-in-construction potash mine from 2029 to 2031 so it could review its project plans.The new budget for the second phase includes room for contingencies as well as capital to build a shipping terminal south of Richmond, B.C., and a third-party rail line.It would take eight years until BHP starts earning a return on the expensive expansion. The company says the project is still worthwhile because it believes its production costs are undercutting its Saskatchewan competitors.“We continue to expect that the combined Jansen mine will be the lowest unit cost Canadian potash mine … reinforcing Jansen’s durable competitive advantage in the potash market,” the company said in its update.BHP said it would cost between US$114 to US$130 per tonne of potash to mine the mineral. The benchmarked price at the Port of Vancouver is more than double that at US$330 per tonne, which would give it a healthy margin.While the value of the project faces a write-down, Brandon Craig, BHP’s president and chief executive-elect of its Americas projects, highlighted its long-term returns.“The combined Jansen Stage 1 and 2 will be a low-cost, long-life asset with almost 60 year mine life and is expected to generate benefits for shareholders for decades,” he said in the update.The first stage is still set to open in mid-2027 and ramp up to mine 4.14 million tonnes of potash per year.As of May 2026, construction on stage two is 16 per cent complete, and the expansion is targeted to go into production in 2031. After it ramps up, it would more than double the facility’s output at 8.5 million tonnes.The Saskatoon Star Phoenix has created an Afternoon Headlines newsletter that can be delivered daily to your inbox so you are up to date with the most vital news of the day. 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