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.

The Jansen mine will produce about 4.4-million tonnes a year in the first phase and have capacity for another 12-million tonnes thereafter, with a mine life of about 100 years.

The current scope of work involves the completion of the excavation and lining of the production and service shafts, as well as the continuance of the installation of essential surface infrastructure and utilities.

Capital Expenditure
The project is expected to cost up to $5.7-billion in its first phase.

Planned Start/End Date
The Jansen Stage 1 potash project will be presented to the BHP board for a final investment decision in the second half of 2021.

The company previously planned to present the project to its board in February 2021, but delays pertaining to the completion of shafts have resulted in a later date.

The delays are a result of initial challenges regarding the placement of the shaft lining, which have since been rectified. The group’s Covid-19 response plan has also impacted on work.

Latest Developments
BHP has signed an agreement with Vancouver-based Westshore Terminals to handle potash for its Jansen mine, according to the terminal operator. 

The agreement is subject to approval by the BHP board and conditional on the mining company’s making a final investment decision on Stage 1 of the Jansen project.

BHP has said that final negotiations on a port solution – a prerequisite for a decision on the potash investment – are progressing.

If the project proceeds, the agreement requires the port to handle potash for BHP until 2051, subject to extension, Westshore has said.

It also requires Westshore to build the necessary infrastructure to handle potash at the Roberts Bank Terminal by 2026, with BHP funding the construction.

If BHP announces a final decision to proceed with Stage 1, the agreement will become binding on BHP, the terminal operator has stated.

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

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