BHP says its Jansen potash mine will face major delays and cost overruns, less than a year after the company reported construction was ahead of schedule.
According to the company’s 2025 operational review, the first stage of the project — originally expected to be complete in 2026 — is now pushed back to mid-2027. BHP also announced costs will rise between $1.3 and $1.7 billion, lifting the total price tag from $5.7 billion to between $7.0 and $7.4 billion.
The company pointed to inflation, scope changes and execution challenges as reasons for the setback.
Premier Scott Moe responded to the news, saying the delay highlights challenges facing large-scale projects across the country.
“We’re living in a very uncertain world when it comes to inflationary pressures on construction and access to labour,” Moe said. “That said, this is still the largest single investment ever in the history of BHP Billiton, and the largest single investment our province has ever seen. We’re grateful they’ve chosen Saskatchewan.”
Despite the delay, Moe stressed that BHP’s investment — along with expansions at canola crush plants, copper and uranium mines, and other potash projects — shows strong economic confidence in the province.
“We could hardly get a hotel room in town because of the activity that’s happening here,” Moe said. “From Yorkton to Regina and beyond, these investments are adding value to our economy and jobs to communities.”
He added that even with a one-year setback, the investment remains transformative.
The Jansen mine has been described as a transformational project for Saskatchewan’s potash industry, joining investments from Nutrien, Mosaic and K+S. Once operational, Jansen is expected to produce 4.35 million tonnes of potash per year in its first phase, with future expansion plans potentially doubling that amount.
Moe said the province’s taxation and investment environment remain competitive, pointing to Saskatchewan’s low cost of doing business and high export numbers.
“BHP’s confidence in Saskatchewan reflects the security and opportunity we provide,” he said. “While this project may be slowed by a year or two, it is still moving forward — and that’s something we should be very thankful for.”
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