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.

Jansen Stage 1 (S1) will produce about 4.35-million tonnes a year, and has a basin position with the potential for further expansions (subject to studies and approvals).

Jansen S1 includes the design, engineering and construction of an underground potash mine and surface infrastructure, including a processing facility, a product storage building, and a continuous automated rail loading system. Jansen S1 product will be shipped to export markets through Westshore, in Delta, British Columbia.

The Jansen S1 project will convert about 20% of the 5.23-billion tonnes in measured and indicated mineral resources into ore reserves. 

The project is expected to operate for about 100 years.

Potential Job Creation
Jansen will create at least 3 500 jobs during peak construction and 600 in operation. The project will have a gender balanced workforce and about 20% of employees will be local First Nations members. 

Net Present Value/Internal rate of Return
The investment decision will generate an internal rate of return of 12% to 14% and have an expected payback period of seven years from first production.

Capital Expenditure
The project is expected to cost up to $5.7-billion in its first phase. The project includes funding for the required port infrastructure.

Planned Start/End Date
First ore is targeted in 2027.

Latest Developments
BHP has approved $5.7-billion in capital expenditure for the Jansen Stage 1 potash project.

The investment is aligned with BHP’s strategy of increasing its exposure to “future facing” commodities, CEO Mike Henry has said.

The Jansen final investment decision comes more than a decade since the company first started work on the giant potash mine. To date, it has invested $4.5-billion on shafts and associated infrastructure, as well as engineering and procurement activities, and preparation works related to Jansen S1 underground infrastructure.

The construction of two shafts and associated infrastructure at the site is 93% complete and is expected to be completed in 2022.

To date about 50% of all engineering required for Jansen S1 has been completed, significantly derisking the project. If the investment to date were to be included, the full cycle project would yield a much lower internal rate of return.

"In addition to its merits as a standalone project, Jansen also brings with it a series of high returning growth options in an attractive investment jurisdiction,” he says.

Product will be shipped to export markets through the Westshore terminal, in Delta, British Columbia.

BHP and Vancouver-based Westshore Terminals signed a conditional agreement on port access in July 2021, which was a prerequisite for the mining company to proceed with the project.

Construction will take about six years, followed by a ramp-up period of two years.

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

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