BHP Hikes Jansen Stage 2 Investment to $6.9 Billion After Review

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BHP Group is increasing its total investment in the Jansen Stage 2 potash project to $6.9 billion, up from a previous estimate of $4.9 billion, following a detailed review. The higher cost reflects a delay in first production to late fiscal 2031, cost escalation, increased material quantities, and extra construction hours. As of May 31, 2026, the project is 16% complete with engineering 83% finished, and it is expected to produce 4.36 million tons per annum with an internal rate of return of 11% and an eight-year payback period. BHP will recognize $2.3 billion in impairment charges due to higher forecasted capital intensity for both stages and potential future expansions. The company is also advancing Jansen Stage 1 toward first production by mid-2027, which together with Stage 2 will double production capacity to 8.5 million tons per year, positioning BHP as a major global potash producer.