BHP shares head for worst day in months on Jansen project cost overruns
Shares of BHP Group slid on Friday after the world's largest listed miner flagged cost overruns at its Jansen Stage 2 potash project in Canada and disclosed a $2.3 billion charge.
The Melbourne-based company's stock fell as much as 4.4% to A$62.21, putting it on track for its worst session since March
9.
The stock also hit its lowest level since June 12.
In a statement late on Thursday, BHP raised the estimated investment for the project's second stage to $6.9-billion from
$4.9 billion.
The latest revision marks the third time BHP has exceeded cost and timeline estimates across the two stages of the project, underscoring a fresh setback to its decade-long strategy to diversify beyond copper and iron-ore.
The miner also said the revised costs will result in an impairment charge of about $2.3-billion for the potash project.
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