BHP has approved an investment of $US4.9 billion ($7.7 billion) for the second stage of its Jansen potash project in Saskatchewan, Canada.
BHP chief executive officer Mike Henry said the investment was an important step in the project.
“This (investment) underscores our confidence in potash and marks the next phase of the company’s growth in Canada,” Henry said.
“We believe Jansen will deliver long-term value for shareholders and the local community, and will position BHP as one of the leaders in the global potash industry.”
Potash, which includes various mined salts such as potassium, is primarily used in fertilisers to support growth.
“Potash will be essential for food security and more sustainable farming,” Henry said.
“The stage two investment advances BHP’s strategy to increase its exposure to commodities positively leveraged to the global megatrends of population growth, urbanisation, rising living standards and decarbonisation.”
Jansen stage one is sitting at 32 per cent complete, with production expected to be delivered in late 2026. Construction at stage two is expected to take six years and deliver production in 2029.
According to BHP, Jansen has the potential for two additional expansions to reach an ultimate production capacity of 16–17 million tonnes per annum.
“The additional investment will transform Jansen into one of the world’s largest potash mines, doubling production capacity to approximately 8.5 million tonnes per annum,” Henry said.
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