Australian mining giant BHP Group (BHP) says it will accelerate the start of a $5.7 billion U.S.
potash project in Saskatchewan as global demand for fertilizer remains elevated.
BHP, which is the world’s biggest miner, says it plans to begin production at its Jansen potash
mine located 140 kilometres east of Saskatoon by 2026. The Canadian potash mine site had
previously been expected to commence production in 2027.
Last year, BHP approved construction of the Jansen potash mine after years of internal and
public debate regarding the costs to get the site up and running. Once fully operational, the
Jansen site is expected to produce 4.35 million tonnes of potash per year.
BHP Group has said that the Jansen site could operate continuously for 100 years or longer,
and eventually grow to a scale that would rival the size of the company’s flagship Pilbara iron
ore mine in western Australia.
BHP said it has been reviewing options to accelerate the Jansen project’s timeline as demand
for fertilizer has accelerated and prices have spiked following Russia’s invasion of Ukraine, a
key global supplier.
Sanctions on potash coming from Belarus, and efforts by China to contain fertilizer shipments
have also tightened the global market, said BHP.
BHP stock is down 5% year-to-date at $50.87 U.S. per share.
