Updated
Updated · Bloomberg · Jun 18
BHP Lifts Jansen Expansion Cost to $6.9 Billion, Taking $2.3 Billion Writedown
Updated
Updated · Bloomberg · Jun 18

BHP Lifts Jansen Expansion Cost to $6.9 Billion, Taking $2.3 Billion Writedown

2 articles · Updated · Bloomberg · Jun 18

Summary

  • BHP now expects the expansion of its Jansen potash mine in Canada to cost $6.9 billion and recorded a $2.3 billion writedown tied to the project.
  • The increase reflects another round of cost and schedule overruns at a mine BHP has repeatedly flagged as a key long-term growth project.
  • Jansen has already seen investment estimates rise and timelines slip, extending a pattern of setbacks at the world's largest miner's flagship push into potash.

Insights

BHP's new mine will supply 10% of world potash. Will this secure global food supply or crash the market?
As BHP's mine costs soar, is Saskatchewan's multi-billion tax break a wise investment or a costly giveaway?