BHP ups Jansen Project investment to US$6.9 billion
- BHP has expanded its total investment estimate for the Jansen Stage 2 project to US$6.9 billion.
- The company expects to record an impairment charge of US$2.3 billion due to higher capital intensity across the asset base.
- The investment aims to lift long-term supply by doubling the project's eventual production capacity.
BHP (ASX:BHP) announced an increase in its total investment estimate for the Jansen Stage 2 Potash Project from US$94 billion to US$6.9 billion following a detailed cost and schedule review.
This revised capital forecast follows a decision in August 2025 to delay the estimated first production of the expansion from fiscal 2029 to late fiscal 2031.
“With the reset of Jansen Stage 2, we are progressing with our intention of building a Tier 1 asset,” said BHP President Americas Brandon Craig.
The company stated that the budget increase stems from additional construction hours, higher material quantities, and cost escalation, which will result in an estimated US$2.3 billion impairment charge.
Following the announcement, the BHP share price was down at $60.34.
Alongside the expansion, the producer is continuing development on Jansen Stage 1, where initial production remains on schedule for mid-2027.
The company stated that completing both stages is expected to bring total capacity to 8.5 million tonnes per annum, which would represent approximately 10% of global potash output.
