BHP has elevated its whole funding estimate for stage two of the Jansen potash mission in Canada from $4.9bn (A$6.98bn) to $6.9bn following an in depth overview of price and schedule forecasts.
The corporate expects first manufacturing from this stage to start late in monetary 12 months 2031 (FY31), two years later than beforehand deliberate.
Approval for Jansen stage two was granted in October 2023, with BHP initially assigning an funding price estimate of $4.9bn.
In August 2025, BHP introduced a two-year extension to the mission’s timeline, shifting the anticipated manufacturing begin to FY31.
The corporate confirmed its intention to supply an up to date capital expenditure (capex) estimate within the second half of FY26.
The revised funding determine follows a complete overview undertaken in the course of the extension, which thought of mission supply, prices and schedule.
BHP attributed many of the enhance to further building hours, increased materials portions and value escalation recognized in the course of the course of.
On the finish of Might 2026, Jansen stage two was reported to be 16% full, with engineering progress at 83%. BHP acknowledged that this has diminished threat for the remaining work.
BHP continues to forecast Jansen stage two output at roughly 4.36 million tonnes every year (mtpa).
With a deliberate two-year ramp-up, the corporate expects mixed Jansen manufacturing to achieve 8.5mtpa, representing round 10% of world potash output.
At consensus potash costs, the up to date inside charge of return for Jansen stage two is 11%, with an anticipated payback interval of eight years.
The corporate reported that underlying earnings earlier than curiosity, taxes, depreciation and amortisation margins are anticipated to stay above 65%.
BHP mentioned that when stage two has reached full ramp-up, the mixed Jansen mine is ready to be the lowest-unit-cost Canadian potash mine at $114–130/t, the identical vary as estimated on the time of mission approval.
In mild of upper projected capital depth for Jansen, BHP mentioned it at present expects to recognise an impairment cost of roughly $2.3bn earlier than and after tax in its monetary outcomes for 2026, referring to its funding within the mission thus far.
Jansen stage one stays on monitor for first manufacturing by mid-calendar 12 months 2027, consistent with the up to date price and schedule set in January 2026.
BHP doesn’t anticipate to vary its group capex steerage for FY27, which stays at roughly $11bn.
BHP Americas president and CEO-elect Brandon Craig mentioned: “BHP continues to put money into its long-term development technique. Jansen is a crucial pillar of BHP’s technique and can ship publicity to a future-facing commodity with robust demand fundamentals and portfolio diversification advantages.”
“BHP raises Jansen stage two price estimate to $6.9bn after overview” was initially created and printed by Mining Technologya GlobalData owned model.
