BHP’s Jansen Stage 1 potash project in Saskatchewan is a go. BHP has approved $7.5 billion – Canadian in capital expenditure for the project.
BHP Chief Executive Officer, Mike Henry, says Jansen is aligned with BHP’s strategy of growing its exposure to future-facing commodities in world class assets, which are large, low cost and expandable.
Henry says, “Jansen is located in the world’s best potash basin and is expected to operate up to 100 years.” He says, “Potash provides BHP with increased leverage to key global mega-trends, including rising population, changing diets, decarbonisation and improving environmental stewardship.” The project, is about 60 kilometres southeast of Humboldt.
Jansen S1 is expected to produce about 4.35 million tonnes of potash annually, and has the potential for further expansions. First ore is targeted in the 2027 calendar year, with construction expected to take about six years, followed by a ramp up period of two years.
Henry says, “Jansen will create at least 3,500 jobs during peak construction and 600 in operation. Jansen S1 will have a gender balanced workforce and approximately 20 per cent of local First Nations employees. In construction and in ongoing operations we will continue to enable local and indigenous businesses. Building on our more than ten-year presence in Saskatchewan, we have signed agreements that provide tangible mutual benefits including jobs and training, small business development and procurement with six First Nations communities around the site, the first of their kind in the potash industry.”
Stage 1 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 and the project includes funding for the required port infrastructure.
Jansen is designed with a focus on sustainability, including being designed for low greenhouse gas emissions and low water consumption.
Westshore Terminals Limited Partnership has entered into a conditional agreement to provide services to BHP Canada as a result of BHP’s decision to proceed with the Jansen Stage 1 project in Saskatchewan.
The Agreement requires Westshore to construct the necessary infrastructure to provide port services to BHP’s Jansen potash mine for a term to 2051, subject to extension.
Westshore has been in discussion with relevant authorities, principally the Vancouver Fraser Port Authority (“VFPA”). Westshore anticipates that the required permits will be issued in the first half of 2022, following which construction will begin. The Agreement provides that the potash infrastructure must be available by mid 2026.
BHP will substantially fund the construction, with Westshore being responsible for construction costs in excess of the agreed budget. Westshore will also contribute up to an aggregate $33 million to costs related to specific infrastructure or unexpected permitting conditions that are encountered.
