BHP still finds Jansen project 'attractive' even after over-investing

BHP (BHP +0.1%) has “over-invested” in its Jansen potash mine under construction in Saskatchewan but still considers the project “attractive” given its strategic fit, risk-return metrics and the longer-term optionality the initial investment would create, CEO Andrew Mackenzie says.

BHP remains uncertain about when its board would make a decision about whether to proceed further, but BMO Capital’s Joel Jackson expects approval by mid-2020 with first production in 2025.

BHP has spent US$2.6B in sinking the project’s two mine shafts but would need to invest as much as another $5.7B to finish phase one construction of the mine.