UNDERGROUND

BHP to accelerate Jansen potash mine

The war in Ukraine has reinforced BHP's decision to enter potash.

BHP will move production up at Jansen to 2026.

BHP will move production up at Jansen to 2026.

The war in Ukraine has led to supply-side destruction in the potash market, as Russia and Belarus account for nearly 40% of global production, Henry said.

"This has positively reinforced the decision we've taken to enter potash," he said.

BHP will accelerate Stage 1 development on the Jansen potash mine in Saskatchewan with production anticipated for 2026, chief executive Mike Henry said.

"We are making good progress and we're looking at potential to accelerate Jansen Stage 1 first production in 2026," Henry said at the Bank of America Metals and Mining conference earlier this week.

The mine had previously been targeting production to begin in 2027.

BHP has also kicked off studies for Stage 2 expansion, Henry said.

Stage 2 would add an additional 4 million tonnes per year, at a capital intensity of between US$800 and US$900 per tonne, a nearly 30% decrease in capital intensity of Stage 1 production, Henry said. This is due to BHP being able to leverage the infrastructure to be built in Stage 1, which includes shafts.

"If markets suit, we may be able to bring this product to market more quickly," Henry said.

The Jansen mine will produce approximately 4.2 million tonnes of potash in the first phase.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalog of 2022 Initial Resource Estimates and recent discovery successes.