BHP Raises Potash Project Costs, Flags $2.3 Billion Write-Down

By Rhiannon Hoyle

BHP Group said an expansion of its potash project in Canada will cost $2 billion more than expected, and that it expects to record a roughly $2.3 billion impairment charge on the development.

The world's biggest miner by market value said Thursday that it now expects to invest $6.9 billion in the second stage of the Jansen project in Canada's Saskatchewan province, up from an estimate of $4.9 billion when the project was approved in 2023.

BHP completed a review of its estimates for the expansion after reporting rising costs for the first stage of the development, which is expected to enter production next year.

The company in January raised its cost estimate for the first stage of Jansen to $8.4 billion, from an estimate of between $7.0 billion and $7.4 billion in July 2025 and an initial forecast of $5.7 billion when that project was approved in 2021.

BHP said it expects first production from the second stage of the project in late fiscal 2031.

Most of the cost increase for the expansion is from additional construction hours and materials, BHP said.

The company said the higher forecast capital intensity is likely to result in a roughly $2.3 billion write-down on the asset.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

June 18, 2026 04:41 ET (08:41 GMT)