BHP takes $2.3 billion hit on Jansen potash, citing soaring costs

BHP Group recorded a $2.3 billion writedown on its Jansen potash project in Saskatchewan, Canada.

The company revised the estimated cost for the second stage to $6.9 billion. This update follows a previous estimate of $4.9 billion provided in 2023.

This revision marks the third time costs have increased for the project. BHP attributed the latest spike to additional construction hours and material expenses.

First production from Jansen Stage 2 is now scheduled for late 2031. BHP maintains the project will eventually operate as a long-life, low-cost asset.