BHP Group will book a $2.3 billion impairment on its Jansen potash project in Saskatchewan following a review that identified significant cost increases and schedule delays. The mine’s Stage 2 expansion is now expected to cost $6.9 billion, roughly 30% higher than previous estimates, with first production delayed until late 2031. Combined costs for Stages 1 and 2 are now projected to reach $15.3 billion. This represents the third time that BHP has blown past its cost and time estimates for both stages of the project. The cost of Stage 1, according to the company, is now estimated to be $8.4 billion, almost 50% higher than what was approved in 2021. Combined with Stage 2, the mine’s expected cost would reach $15.3 billion.

In its most recent update on June 18, BHP said the construction of Stage 2 is approximately 16% complete. Once ramped up, it is expected to deliver approximately 4.36 million tonnes per annum of production, similar to that of the first stage, which the company said is on track for production in mid-2027. Once fully operational, the mine is expected to account for approximately 10% of total global potash production.

Westshore Terminals in the Port of Vancouver will serve as the eventual maritime export hub for this potash. The facility has already undergone specific upgrades in order to be able handle up to 4.5 million metric tonnes (MMT) of potash per year.