BHP has accomplished an in depth evaluation of value and schedule estimates for Stage 1 of the Jansen potash challenge (Jansen Stage 1) in Saskatchewan, Canada and confirms that the whole funding estimate for Jansen Stage 1 will improve to US$8.4 billion (together with contingencies) and the primary manufacturing schedule has reverted to the unique schedule of mid CY2027.
In July 2025, BHP confirmed that it anticipated to replace the market on the timing and capital expenditure estimate for Jansen Stage 1 in H2 FY2026. The funding value estimate has been up to date from the beforehand estimated vary of US$7.0 billion to US$7.4 billion (together with contingencies) introduced in July 2025 and the US$5.7 billion preliminary estimate of the funding value for Jansen Stage 1 when the challenge was accredited in August 2021. As introduced in July 2025, these value will increase have been pushed by inflationary and actual value escalation pressures, design growth and scope modifications and decrease productiveness outcomes.
The vast majority of the price improve for the reason that estimated vary introduced in July 2025 is from development hours and portions of supplies that weren’t included in earlier execution value estimates. These development prices had been recognized following the excellent evaluation of Jansen Stage 1 funds and schedule.
BHP says it has applied a response plan to deal with value and schedule dangers for Jansen Stage 1 which has improved productiveness, strengthened challenge administration and enhanced oversight of execution contracts. This plan is anticipated to assist sustained effectivity beneficial properties within the supply of Jansen Stage 1 and improved capital depth in subsequent phases of the Jansen Undertaking.
Jansen Stage 1 continues to progress and is 75% full. BHP continues to count on Jansen Stage 1 to ship roughly 4.15 Mt/y of potash manufacturing. At consensus costs, Jansen Stage 1 has an up to date inside price of return of seven.9% to 9.1% and an up to date anticipated
payback interval of 11 to fifteen years from first manufacturing. Underlying EBITDA margins it says for Jansen Stage 1 stay sturdy at roughly 63% to 64% as a consequence of its low-cost place.
BHP President Americas, Brandon Craig stated: “Jansen is a crucial pillar in BHP’s long-term development technique and is a long-life, low value expandable asset that’s anticipated to generate advantages for shareholders for many years. As soon as operational, Jansen will set up BHP as a number one participant within the international potash business. We stay optimistic concerning the progress at Jansen and in potash as a future dealing with commodity with sturdy long-term demand fundamentals pushed by inhabitants development, higher diets, rising dwelling requirements, and the necessity for extra productive and sustainable use of arable land.”
BHP is constant to advance development of Jansen Stage 2 and can implement the challenge execution enhancements recognized within the evaluation of the funding value and schedule estimates for Jansen Stage 1. BHP expects to replace the market on the funding expenditure estimate for Jansen Stage 2 in This autumn FY2026. Long run, Jansen has the potential for 2 further expansions to succeed in an final manufacturing capability of 16 to 17 Mt/y (topic to research and approvals).
