BHP approves C$6.4 billion for stage two of the Jansen potash project, doubling investment in Canada and potash
31 Oktober 2023 - 8:55AM
BHP today announced the approval of an investment of C$6.4 billion
for Stage 2 of the Jansen potash project (
Jansen Stage
2), doubling BHP’s investment in potash as the company
builds one of the world’s largest potash mines, located
approximately 140 kilometres east of Saskatoon, Saskatchewan.
This follows BHP’s approval of C$7.5 billion for stage one of
the Jansen potash project (Jansen Stage 1) in
August 2021, and a pre-Jansen Stage 1 investment of C$4.9
billion.
Jansen Stage 1 is 32% complete with anticipated first production
planned for late calendar year 2026. Construction of Jansen Stage 2
is expected to take approximately six years with first production
planned in FY2029 followed by a ramp up period of three years.
Jansen Stage 2 is expected to double production capacity at Jansen
to approximately 8.5 million tonnes per annum (Mtpa), increasing
Canada’s production of this critical mineral and further supporting
Canada’s position as one of the world’s top producers of potash.
Longer term, Jansen has the potential for two additional expansions
to reach an ultimate production capacity of 16 to 17 Mtpa (subject
to studies and approvals).
“The approval of Jansen stage two is an exciting next step in
our growth plans for Canada that reinforces our confidence in
potash, and our optimism in Canada as a premier investment
jurisdiction. Together with our partners, we have a highly skilled
team that is building one of the most modern and largest potash
mines in the world,” said Ragnar Udd, President Americas, BHP.
Potash, used in fertilizers, is essential for global food
security and more sustainable farming as the world’s population
increases, access to arable land decreases and diets improve. It is
a key component in BHP’s strategy to invest in future-facing
commodities that are linked to global megatrends of population
growth, urbanization, rising living standards and
decarbonization.
Jansen has been designed with a focus on social value and
sustainability. It is expected to have approximately 50% less
operational (Scopes 1 and 2) greenhouse gas emissions per tonne of
product and use up to 60% less fresh water when compared to the
average potash mine in Saskatchewan. A cornerstone of the project
is working together with local and Indigenous communities to ensure
mutual benefit and long-term planning to support the success of the
project and economic prosperity in the region.
BHP is also pleased to continue to partner with the Governments
of Canada and Saskatchewan on sustainability solutions and economic
development priorities. BHP is pursuing carbon-neutral electricity
at Jansen by 2035, an ambition that will require innovation and
collaboration. Building on the C$100 million Strategic Innovation
Fund investment from the Government of Canada in June 2022, and a
strong working relationship with the Government of Saskatchewan,
the company looks forward to continued collaboration on these
important areas.
Udd continued, “We would like to thank the Governments of Canada
and Saskatchewan for their ongoing support in progressing Jansen.
We recognize the important work of each government with their
respective critical mineral strategies, both of which include
potash. There is a significant opportunity for Saskatchewan and
Canada to build upon their position as one of the leading global
suppliers of the critical minerals the world needs. As we advance
Jansen, we are pleased to partner on solutions that will bring
benefit to all stakeholders.”
The Honourable François-Philippe Champagne, Canada’s Minister of
Innovation, Science and Industry, said: “The continued commitment
from BHP in Saskatchewan and Canada is a strong vote of confidence
for our mining and agricultural sectors, and also a testament to
the work made by our government to feed a growing population and
green mining operations. Critical minerals, especially potash, are
the building blocks of the low-carbon economy, and the demand for
materials will only increase in the upcoming years. This investment
will help to secure our food and critical mineral supply chains,
lead to the creation of hundreds of well-paying jobs for Canadians
and bring strong economic benefits to Saskatchewan.”
The Honourable Jim Reiter, Saskatchewan’s Minister of Energy and
Resources said: “The Jansen project is the largest mining
investment in Saskatchewan’s history and BHP’s decision to further
proceed with Jansen Stage 2 highlights Saskatchewan’s enormous
potential as a leader in providing sustainably produced potash and
critical minerals the world needs. Our government would like to
thank BHP for their continued investment, helping build our economy
by providing thousands of jobs and opportunities for families and
communities.”
Key statistics and information:
- Jansen Stage 1 is
being delivered by an integrated project team combining expertise
from within BHP, Hatch and Bantrel. Jansen Stage 2 builds on this
delivery model and introduces Fluor to the Jansen Stage 2 delivery
team.
- Jansen Stage 2 is
expected to create opportunities for over 2,000 contractors at peak
construction and more than 300 local Saskatchewan-based roles once
production commences. This means that over 2,000 construction jobs
will be required for more than three years beyond the completion of
Jansen Stage 1 for the ongoing works to complete Jansen Stage 2 and
an anticipated 900 full time roles at BHP.
- BHP is committed to
an operational workforce at Jansen which reflects the communities
it is a part of. This includes a gender balanced workforce and
achieving 20 per cent Indigenous participation.
- BHP has Opportunity
Agreements in place with six First Nations in the Jansen region
designed to enhance mutual capacity and forge strong relationships
with Indigenous Peoples and create local employment, business
opportunities and build the skills and capabilities of local
residents. Since sanctioning of Jansen Stage 1, BHP has awarded
over C$470 million in contracts to Indigenous businesses.
- Jansen Stage 2 is
expected to generate over C$500 million worth of contract
opportunities for local, provincial and Indigenous businesses. This
brings total contract opportunities in Saskatchewan across both
stages of the Jansen project to more than C$1 billion.
- On June 13, 2022,
the Government of Canada announced an investment of C$100 million
through the Strategic Innovation Fund (SIF) to support and advance
the development of the Jansen project as a world-leading low
operational greenhouse gas (GHG) emissions potash mine. Through
this project, BHP will design to significantly minimize the carbon
footprint of production of the mine, improve worker safety and
implement technology to further reduce GHG emissions from
underground mine operations.
- In addition to its
Canadian operational headquarters in Saskatoon, Saskatchewan,
BHP’s global business development headquarters is located in
Toronto, Ontario. A decision which recognises Canada’s role in the
global mining industry and high-quality industry talent.
- BHP continues to
invest in a variety of long-term initiatives in education,
employment, health, and community development. Since 2015, BHP’s
social investment partnerships in Canada total more than C$50
million.
For full details on the investment decision and project details,
please see: bhp.com/JS2
About BHP
BHP is a global resources company with its Canadian operational
headquarters in Saskatoon, Saskatchewan and global
business development headquarters in Toronto. BHP has a global
workforce of approximately 80,000 people working in locations
across Canada, Australia, Asia, the UK, US and the
Americas. BHP produces commodities essential for global
decarbonization, economic development and food security including
copper, nickel, iron ore, metallurgical coal and is developing
the Jansen potash project in Saskatchewan,
Canada.
Further information on BHP can be found at: bhp.com
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