BHP flags US$2.3b impairment as Jansen costs climb

BHP (ASX: BHP) has flagged a US$2.3b impairment from its Jansen potash project in Canada after costs for Stage 2 increased to US$6.9b.

Jansen Stage 2 of the Jansen potash project was initially approved in October 2023 with a budget of US$4.9b.

*In August 2025, BHP announced a two-year extension, shifting first production from FY29 to FY31.*

The latest cost increase follows BHP’s January reset of Jansen Stage 1, when the miner lifted the forecast cost to US$8.4b, up from the initial US$5.7b estimate in August 2021.

BHP said the majority of the stage 2 cost increase was due to additional construction hours and more materials required to complete the expansion.

“BHP continues to invest in its long-term growth strategy. Jansen is an important pillar of BHP’s strategy and will deliver exposure to a future facing commodity with strong demand fundamentals and portfolio diversification benefits,” BHP Americas president and chief executive-elect Brandon Craig said.

“With the reset of Jansen Stage 2, we are progressing with our intention of building a Tier 1 asset.

“The combined Jansen Stage 1 and 2 will be a low cost, long life asset with almost 60 year mine life and is expected to generate benefits for shareholders for decades.

“Once operational, Jansen will establish BHP as a leading player in the global potash industry.”

At the end of May 2026, Jansen Stage 2 was 16% complete, with engineering 83% complete.

Following an expected two-year ramp-up period from first production, combined output from Jansen is expected to be 8.5mtpa and will deliver about 10% of total global potash productio