The estimated cost of a major potash mine in southeastern Saskatchewan continues to grow, with the most recent figures pointing towards a total cost of US$6.9 billion, or CA$9.7 billion, for phase two of the Jansen project.
Previous reports said the cost would be US$4.9 billion (CA$6.9 billion), but the number rose following a detailed review of the project in Jansen, Sask., according to a news release shared by BHP Group.
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The root of the price jump worth billions of dollars was said to be additional construction costs, which include workers’ hours and materials, both of which were necessary to complete the second phase, the company said.
As of the end of last month, BHP said the project was “16 per cent complete with engineering at 83 per cent complete, de-risking the estimate for remaining work.”
The expected output of the potash mine remains unchanged at 4.36 million tonnes per year initially for two years. Then, it is projected to increase to 8.5 million tonnes per year, or 10 per cent of global potash production, the company said.
“Once Jansen Stage 2 ramps up, we continue to expect that the combined Jansen mine will be the lowest unit cost Canadian potash mine,” BHP wrote in its release.
Costs for the first stage of the project also jumped in January, rising from US$7.4 billion to US$8.4 billion.
Ah yes, Jansen
Saskatchewan’s answer to Muskrat Falls.
Its just a big hole in the ground where BHP dumps all its money. For what? It is now 20 years into a project that is only 16% done.