BHP revises Jansen project costs to $6.9 billion, up $2 billion, delaying first production to late 2031 amid weak potash market outlook.
BHP shares fell 5.6% to $61 after the company announced a $2.3 billion write-down on its Jansen potash project in Canada. The impairment stems from higher costs and schedule delays, pushing the second phase’s budget to $6.9 billion from $4.9 billion.
The revision marks the third cost increase in under a year, bringing total investment in Jansen to nearly $19.8 billion. Analysts noted execution risks remain high, with 84% of Stage 2 construction still ahead. First production is now expected by late 2031.
The announcement weighed on sentiment as analysts cited a weak near-term outlook for potash markets, further pressuring BHP’s valuation estimates.