Name of the Project
Jansen potash project.

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

Jansen Stage 1 (S1) will produce about 4.35-million tonnes a year, and has a basin position with the potential for further expansions (subject to studies and approvals).

Jansen S1 includes the design, engineering and construction of an underground potash mine and surface infrastructure, including a processing facility, product storage building and continuous automated rail loading system. Jansen S1 product will be shipped to export markets through Westshore, in Delta, British Columbia.

The Jansen S1 project will convert about 20% of the 5.23-billion tonnes in measured and indicated mineral resources into ore reserves. 

The project is expected to operate for about 100 years. It includes a separate scope of work for the excavation and lining of the production and service shafts, and to continue the installation of essential surface infrastructure and utilities.

Potential Job Creation
Jansen will create at least 3 500 jobs during peak construction and 600 in operation. The project will have a gender-balanced workforce and about 20% of employees will be local First Nations members. 

Net Present Value/Internal rate of Return
The investment decision will generate an internal rate of return of 12% to 14% and have an expected payback period of seven years from first production.

Capital Expenditure
The project is expected to cost up to $5.7-billion in its first phase. The project includes funding for the required port infrastructure.

Excavation and lining of the production and service shafts, as well as the installation of essential surface infrastructure and utilities, is estimated to cost $2.97-billion.

Planned Start/End Date
Jansen S1 was approved in August 2021, with first ore targeted in 2027.

Latest Developments
BHP is investigating ways of accelerating the development of the Jansen project at a time when creaking supply chains are pushing up crop nutrient prices.

BHP reported on May 6 that the potash project was on track, with good progress on the shafts, in the underground mining systems and at the port.

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

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