Global mining company BHP has significantly increased the projected cost of the second phase of its Jansen potash mine project in Saskatchewan, citing revised estimates and an extended construction timeline.
The Australian-based miner announced that Jansen Stage 2 is now expected to cost approximately US$6.9 billion, a 40 percent increase from the US$4.9 billion estimate provided when the expansion was approved in 2023. The revised figure represents an additional US$2 billion investment in the project.
BHP also confirmed that first production from Stage 2 is now anticipated in late 2031, two years later than the original target of 2029. The company noted that the schedule extension, first announced in August 2025, provided an opportunity to reassess project costs and timelines more accurately.
Located east of Saskatoon, the Jansen project is one of the world’s largest potash developments. Potash is a key fertilizer ingredient used globally to enhance agricultural productivity and support food production.
Despite the higher costs and delayed startup, BHP remains confident in the project’s long-term value. The company expects Jansen Stage 2 to become one of the lowest-cost potash operations in Canada once it reaches full production capacity.
As of the end of May 2026, BHP reported that construction on Stage 2 was 16 percent complete, while engineering work had reached 83 percent completion.
Brandon Craig, BHP’s President for the Americas and CEO-designate, said the revised plan supports the company’s goal of developing a world-class mining asset.
“The combined Jansen Stage 1 and 2 will be a low-cost, long-life asset with almost a 60-year mine life and is expected to generate benefits for shareholders for decades,” Craig said.
Once both stages are operational, BHP expects the Jansen mine to establish the company as a major force in the global potash market, diversifying its portfolio beyond traditional commodities such as iron ore, copper, and coal.