Overview
- BHP disclosed on Thursday, June 18, 2026 that stage-two capital for its Jansen potash project has increased from US$4.9 billion to US$6.9 billion and that it will record a US$2.3-billion impairment.
- The company attributed the cost rise to additional construction hours, larger material quantities and the earlier decision to extend the stage-two schedule by two years, with full ramp-up now targeted around 2031.
- As of the end of May 2026 BHP reported stage two was about 16 percent complete and engineering roughly 83 percent complete while stage one remains on track for first production in mid-2027.
- Investors reacted sharply with BHP shares falling after the announcement and analysts warned the latest increase raises cumulative committed spending to roughly US$19.8 billion and leaves significant execution risk.
- BHP says Jansen will still be a low-cost, long-life mine that could supply about 10 percent of global potash, but the company also notes the expansion will take several years after completion before it generates returns.