BHP raises Jansen stage two cost estimate to $6.9bn after review

BHP has accrued its full concern estimation for signifier 2 of the Jansen potash task successful Canada from $4.9bn (A$6.98bn) to $6.9bn pursuing a elaborate reappraisal of outgo and docket forecasts.

The institution expects archetypal accumulation from this signifier to commence precocious successful fiscal twelvemonth 2031 (FY31), 2 years aboriginal than antecedently planned.

Approval for Jansen signifier 2 was granted successful October 2023, with BHP initially assigning an concern outgo estimation of $4.9bn.

In August 2025, BHP announced a two-year hold to the project's timeline, moving the expected accumulation commencement to FY31.

The institution confirmed its volition to supply an updated superior expenditure (capex) estimation successful the 2nd fractional of FY26.

The revised concern fig follows a broad reappraisal undertaken during the extension, which considered task delivery, costs and schedule.

BHP attributed astir of the summation to further operation hours, higher worldly quantities and outgo escalation identified during the process.

At the extremity of May 2026, Jansen signifier 2 was reported to beryllium 16% complete, with engineering advancement astatine 83%. BHP stated that this has reduced hazard for the remaining work.

BHP continues to forecast Jansen signifier 2 output astatine astir 4.36 cardinal tonnes per annum (mtpa).

With a planned two-year ramp-up, the institution expects combined Jansen accumulation to scope 8.5mtpa, representing astir 10% of planetary potash output.

At statement potash prices, the updated interior complaint of instrumentality for Jansen signifier 2 is 11%, with an expected payback play of 8 years.

The institution reported that underlying net earlier interest, taxes, depreciation and amortisation margins are expected to stay supra 65%.

BHP said that erstwhile signifier 2 has reached afloat ramp-up, the combined Jansen excavation is acceptable to beryllium the lowest-unit-cost Canadian potash excavation astatine $114–130/t, the aforesaid scope arsenic estimated astatine the clip of task approval.

In airy of higher projected superior strength for Jansen, BHP said it presently expects to recognise an impairment complaint of astir $2.3bn earlier and aft taxation successful its fiscal results for 2026, relating to its concern successful the task to date.

Jansen signifier 1 remains connected way for archetypal accumulation by mid-calendar twelvemonth 2027, successful enactment with the updated outgo and docket acceptable successful January 2026.

BHP does not expect to alteration its radical capex guidance for FY27, which remains astatine astir $11bn.

BHP Americas president and CEO-elect Brandon Craig said: "BHP continues to put successful its semipermanent maturation strategy. Jansen is an important pillar of BHP's strategy and volition present vulnerability to a future-facing commodity with beardown request fundamentals and portfolio diversification benefits."

"BHP raises Jansen signifier 2 outgo estimation to $6.9bn aft review" was primitively created and published by Mining Technology, a GlobalData owned brand.