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yesterday

BHP’s Jansen Potash Mine Budget Rises to US$7.4 Billion as Start-Up Shifts to Mid-2027

BHP plans to realign its second phase schedule with future supply forecasts following cost increases driven by inflationary pressures, evolving design scope, lower productivity outcomes.

It blamed the cost increase at its Jansen potash mine on “inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period.”
BHP is expecting demand for potash, the fertiliser ingredient, to increase as the world’s population grows
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Overview

  • The phase one budget has increased to between US$7 billion and US$7.4 billion, representing roughly a 30 per cent overrun against the original US$5.7 billion estimate.
  • First production is now slated for mid-2027, marking a six-month delay from the initial end-2026 target.
  • BHP attributes the cost increase and schedule delay to inflationary pressures, evolving design scope and lower-than-expected construction productivity.
  • As of mid-2025, phase one is 68 per cent complete following US$4.5 billion in spending, with US$400 million already invested toward phase two.
  • The company is considering deferring phase two by two years into its fiscal 2031 cycle to align with projected potash supply growth.