BHP Group Ltd. of Australia said its Jansen potash mine 150 killometres east of Saskatoon is running 30 per over budget and its opening will be delayed about six months to mid-2027.
BHP is poised to break the Saskatchewan monopoly on potash.
BHP said the first phase of the Jansen project could cost $7 to $7.4 billion US compared with its initial estimate of $5.7 billion US.
It blamed the projection on “inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period.”
Some of that stems from disruptions of the COVID-19 pandemic on supply chains, and the resulting inflation as the world’s economy fired up after the health restrictions.
