BHP takes $2.3bn writedown on Jansen potash

BHP will take a $2.3bn writedown on its Jansen potash project in Canada after the latest in a series of cost overruns pushed the price of the phase two expansion to $6.9bn, said Bloomberg News on Thursday.The world’s largest miner said phase two production would now begin toward the end of 2031. First output from phase one is expected next year. The project expansion was previously costed at $4.9bn.BHP approved construction of the Saskatchewan mine in 2021 after prolonged debate over its cost, and pressed ahead with the phase two expansion in 2023. This was before phase one was even in production and just as fertiliser prices surged following Russia’s invasion of Ukraine, said Bloomberg. Prices have since fallen while costs across both phases have continued to climb, it added.The project has long drawn scepticism from some investors, though BHP views Jansen as a long-term strategic asset capable of operating for a century and eventually rivalling its flagship iron ore operations in Australia in scale.BHP rival Anglo American is also contending with capex demand from its mineral fertiliser project Woodsmith in the UK. In 2024, Anglo said it would slow the development of Woodsmith while it focused on a restructuring. It subsequently announced a merger with Teck Resources, a Canadian firm, which raises further questions about whether it will eventually proceed with Woodsmith.First production had been targeted for 2030 with a ramp up coming no earlier than 2027, said CEO Duncan Wanblad previously.In 2023 Anglo revised Woodsmiths estimated capex upward to between £7bn and £9bn. It has spent about £2.7bn on the project since acquiring it in 2020.The post BHP takes $2.3bn writedown on Jansen potash appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com