Name of the Project
Jansen potash project.

Location
About 140 km east of Saskatoon, in Saskatchewan, in Canada.

Project Owner/s
Multinational mining company BHP.

Project Description
The Jansen potash project has an estimated measured resource of 5.17-billion tonnes and an inferred resource of 1.27-billion, both grading 25.7% potassium oxide, 7.1% insolubles and 0.07% magnesium oxide.

The project is being designed to produce about eight-million tonnes a year of agricultural-grade potash in three phases. The project has an estimated 70-year life-of-mine.

The current scope of work involves the completion of the excavation and lining of the production and service shafts, as well as the continuance of the installation of essential surface infrastructure and utilities.

Capital Expenditure
Not stated.

Planned Start/End Date
The Jansen Stage 1 potash project will be presented to the BHP board for a final investment decision in the second half of 2021.

The company previously planned to present the project to its board in February 2021, but delays pertaining to the completion of shafts have resulted in a later date.

The delays are a result of initial challenges regarding the placement of the shaft lining, which have since been rectified. The group’s Covid-19 response plan has also impacted on work.

Latest Developments
BHP Group is in talks with Nutrien about a potential partnership in the Jansen potash project as it progresses towards a final decision on the project.

The companies are discussing multiple options, including Nutrien’s becoming the operator and selling the potash through its existing channels or the company taking a stake in the Jansen mine, according to people familiar with the matter; however, there is no guarantee that the talks will lead to a deal.

BHP has struggled with the Jansen project for years. Despite spending about $4.5-billion and digging two 1 000 m deep shafts, the company has yet to approve its construction and has faced shareholder opposition, including from Elliott Investment Management. BHP’s board is set to make a final decision in the coming months.

Key Contracts, Suppliers and Consultants
DMC Mining Services (development of two new mine shafts) and SNC-Lavalin (feasibility study for Jansen Phase 1, as well as engineering, procurement and construction management services for Phase 1).

Contact Details for Project Information
BHP, tel +61 3 9609 3333.