31st Oct 2023 09:10
(Alliance News) - BHP Group Ltd on Tuesday said it decided to go ahead with the second phase of a potash mine in Canada in which it is investing more than USD15 billion in total.
The Melbourne, Australia-based miner said it has approved a USD4.9 billion investment for stage two of the Jansen potash project in the province of Saskatchewan. This follows its decision back in 2021 to invest USD5.7 billion in phase one, having already spent USD4.5 billion on preparing the project.
BHP said the stage two investment will double Jansen's production capacity to about 8.5 million tonnes per year. This will make it one of the world's largest potash mines. Potash is primarily used in fertilizer for farming.
BHP said stage one is 32% complete and on schedule. First production from this phase is expected late in calendar 2026. Stage two is expected to take six years to complete, with first production in 2029.
"This is an important milestone that underscores our confidence in potash and marks the next phase of the company's growth in Canada," commented BHP Chief Executive Officer Mike Henry.
BHP shares were down 0.9% to 2,343.00 pence in London early on Tuesday. They also were down 1.1% in Johannesburg, to ZAR535.16, and closed down 1.4% in Sydney at AUD44.50.
By Tom Waite, Alliance News editor
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