BHP says estimated cost for 1st phase of Saskatchewan's Jansen mine now at $8.4B US

Global mining giant BHP has again raised the cost estimate for the first stage of its Jansen potash project in Saskatchewan.

The first stage of the mine is now expected to cost $8.4-billion US after a review of its budget and schedule, the Australia-headquartered company said Tuesday.

The forecast is up from expectations in July 2025 for between $7-billion US and $7.4-billion US.

Jansen was initially estimated to cost $5.7-billion US when it was approved in August 2021.

"We remain positive about the progress at Jansen and in potash as a future facing commodity with strong long-term demand fundamentals driven by population growth, better diets, rising living standards and the need for more productive and sustainable use of arable land," said Brandon Craig, president of BHP's Americas division.

WATCH | Sask. First Nations, towns work to maximize benefits of $14B mine:

Sask. First Nations, towns working together to maximize benefits, avoid pitfalls of $14B mine project

June 18, 2024|

Duration 2:28

An unprecedented alliance of more than 50 municipalities and First Nations is taking shape in Saskatchewan. Its aim is to maximize the benefits — and head off any problems — associated with one of Canada's largest resource projects: BHP's $14-billion Jansen potash mine.

The latest cost increase was related to construction hours and quantities of materials that were not included in earlier cost estimates, identified after the earlier budget review.

BHP said the first stage of the Jansen mine is 75 per cent complete and it continues to expect it to produce about 4.15 million tonnes of the widely used fertilizer per year.

First production at the mine is expected in mid-2027.