"BHP to inject $4.9bn into Jansen to double potash output"

" BHP to inject $4.9bn into Jansen to double potash output \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nBHP said on Tuesday \u00a0it would invest $4.9 billion in stage two of its giant Jansen potash project in Canada, as it aims to double capacity by the end of the decade.\r\n\r\nThe investment\u00a0 adds to the $5.7 billion the world\u2019s largest miner is pouring into stage one of the potash project in Saskatchewan, and an investment of $4.5 billion the company sunk into Jansen before its first phase was even approved.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nBHP considers potash, used in crops fertilizers, as one of its pillars of future growth. It expects potash demand to increase by 15 million\u00a0tonnes\u00a0to roughly 105 million\u00a0tonnes\u00a0by 2040, or 1.5% to 3% a year, along with the global population and pressure to improve farming yields given limited land supply.\r\n\r\nWith the additional investment announced on Tuesday, BHP expects Jansen to become one of the world\u2019s largest potash mines, doubling production capacity to approximately 8.5 million tonnes per year (Mtpa) in late fiscal 2029.\r\n\r\n\u201cThis is an important milestone that underscores our confidence in potash and marks the next phase of the company\u2019s growth in Canada,\u201d chief executive officer, Mike Henry, said\u00a0 in the statement .\r\n Source:\u00a0 BHP\u2019s presentation at BMO Farm to Market Conference 2022. \r\nThe first stage of the project is 32% complete and progressing as per schedule, BHP said. The second stage is expected to take six years and produce about 4.36 mtpa at a capital intensity of about $1,050\/tonne, which is in line with BHP\u2019s strategy to invest in large deposits that have high barriers to entry and offer strong margins.\r\n\r\nBHP had tried to tap into the fertilizer market for some time.\u00a0In 2010, it\u00a0unsuccessfully bid $38.6 billion for Potash Corp. of Saskatchewan, which in 2018 merged with Agrium Inc. to form\u00a0Nutrien\u00a0(TSE, NYSE: NTR).\r\n\r\nJansen had the potential to produce 16-17 million tonnes of potash a year under a four-phased development. This would account for about 25% of current global demand.\r\n\r\nBHP had originally planned to begin production at Jansen in 2027. Market conditions, including Russia\u2019s invasion of Ukraine and sanctions on Belarusian potash,\u00a0 prompted it to bring forward stage 1 \u00a0first production into 2026.\r\n\r\n \r\n \r\n \r\n "

"BHP to inject $4.9bn into Jansen to double potash output"

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