Sifte Radio

Tag: Saskatoon

  • BHP Raises Jansen Potash Mine Expansion Cost by US$2 Billion, Delays Production to 2031

    BHP Raises Jansen Potash Mine Expansion Cost by US$2 Billion, Delays Production to 2031

    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.

  • Saskatchewan Farmers Struggle With Floods, Rising Fuel Costs and Expensive Fertilizer

    Saskatchewan Farmers Struggle With Floods, Rising Fuel Costs and Expensive Fertilizer

    Farmers across Saskatchewan are facing mounting financial pressure as widespread flooding, soaring fuel prices, and rising fertilizer costs threaten this year’s growing season.

    Producers in Northern and Central Saskatchewan say excessive water from spring flooding has left fields submerged and delayed seeding operations, creating fears of lower crop yields and major financial losses.

    Joel Hoey, who farms near Paddockwood about 180 kilometres northeast of Saskatoon, described the situation as a “triple threat” for farmers already struggling with rising production expenses linked to instability in the Middle East.

    “It’s really starting to eat away at your bottom line,” Hoey said. “You’re seeing the rising price of fuel, the high cost of inputs and then you got this.”

    Floodwaters have overtaken portions of Hoey’s farmland, while other fields remain too saturated for equipment to enter. He estimates the flooding could delay planting by as much as two to three weeks.

    Several Saskatchewan communities remain under local states of emergency as flooding continues to damage roads, isolate farms, and disrupt transportation routes critical for moving heavy agricultural equipment.

    Bill Prybylski warned that delays in seeding often lead to reduced crop yields and greater risk of frost damage later in the year.

    “The prospects of a good financial return are quickly diminishing,” Prybylski said.

    Farmers must generally complete planting by mid-June to qualify for crop insurance coverage. Prybylski said many acres across the province may remain unseeded because fields are unlikely to dry out before insurance deadlines pass.

    He added that many producers may hesitate to invest heavily in fertilizer and fuel if crop prospects continue deteriorating.

    Flood damage has also severely impacted local infrastructure. Washed-out roads and weakened transportation routes are expected to complicate access to farmland even after water levels recede.

    Hoey said some farmers may be forced to take significantly longer routes to reach their fields, creating additional logistical and financial challenges.

    “It’s just kind of a nightmare,” he said.

    Dave Marit has been touring flood-affected areas to assess the damage. He said repairing critical infrastructure would become a key priority once floodwaters begin to subside.

    Meanwhile, the Water Security Agency warned that additional snowmelt could worsen flooding conditions in already affected areas.

    Despite the setbacks, many Saskatchewan farmers say they remain hopeful conditions will improve enough to salvage part of the growing season.

    “There’s still optimism out there,” Prybylski said. “We wouldn’t be in this business if we weren’t optimistic that things are going to turn around.”