Updated
Updated · Bloomberg · Jun 19BHP Shares Fall After $2.3 Billion Jansen Writedown as Phase 2 Cost Jumps to $6.9 Billion
3 articles · Updated · Bloomberg · Jun 19Summary
- BHP shares fell after the miner disclosed a $2.3 billion writedown on its giant Jansen potash project in Canada.
- Cost and time overruns in the phase-two expansion drove the charge, with BHP saying a review lifted the budget to $6.9 billion from $4.9 billion.
- The revised plan also pushes first production from phase two to toward the end of 2031, extending the timeline for a key growth project.
- Jansen has repeatedly run over earlier cost estimates and schedules, underscoring the execution risks around BHP’s long-term bet on potash.
Insights
BHP's new mine will supply 10% of world potash. Will this secure global food supply or crash the market? As BHP's mine costs soar, is Saskatchewan's multi-billion tax break a wise investment or a costly giveaway?