Mining Giant BHP Group Bumps Up Investment In Potash; Approves C$6.4B For Stage 2 Of Jansen Project

BHP Group Ltd BHP disclosed approval of an investment of C$6.4 billion for Stage 2 of the Jansen potash project, which doubles its investment in potash.

The move is at par with the company's aim to build one of the world's largest potash mines, located around 140km east of Saskatoon, Saskatchewan.

The company anticipates the construction of Jansen Stage 2 to take around six years, with the first production planned in FY29, followed by a ramp-up period of three years. 

BHP projects Jansen Stage 2 to double production capacity at Jansen to around 8.5 million tonnes per annum (Mtpa), which is anticipated to boost Canada's critical mineral production and boost Canada's position as one of the world's top producers of potash. 

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This follows BHP's approval of C$7.5 billion for stage one of the Jansen potash project in August 2021 and a pre-Jansen Stage 1 investment of C$4.9 billion. Jansen Stage 1 is 32% complete, with the expected first production planned for late calendar year 2026. 

The company sees Jansen's potential for two additional expansions to reach an ultimate production capacity of 16 to 17 Mtpa in the long term.

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Price Action: BHP shares are trading lower by 1.04% at $56.95 premarket on the last check Tuesday.