Global miner BHP Group said on Tuesday (Oct 31) it would invest US$4.9 billion in stage two of its Jansen potash project in Canada to double its capacity, following a US$5.7 billion capital investment for stage one in 2021.

The first stage is 32 per cent complete and progressing as per schedule, said BHP. It expects the second stage to take six years, with production of about 8.5 million tonnes per annum (mtpa) in late fiscal 2029.

The additional investment will be used to develop further mining districts, expand processing facilities and add more rail cars, among other uses, the world’s largest listed miner said.

The miner had invested US$4.5 billion in the potash project in Saskatchewan project before the first stage. It is one of BHP’s biggest-ever capital investments, and the miner is confident in the project despite the recent slump in commodity prices.

“This is an important milestone that underscores our confidence in potash and marks the next phase of the company’s growth in Canada,” CEO Mike Henry said in a statement.

BHP said it expects the second stage to result in about 4.36 Mtpa of production at a capital intensity of about US$1,050/tonne. REUTERS

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