Published • loading... • Updated
Multi-Billion Dollar Overruns at Jansen Mine Won’t Affect BHP’s Bottom Line. Here’s Why.
BHP said phase two will now cost US$6.9 billion after a review, adding to a US$2.3 billion writedown and more project delays.
- BHP Group announced Thursday that the phase two expansion of its Jansen potash mine in Saskatchewan will now cost US$6.9 billion, up from an earlier forecast of US$4.9 billion.
- The company attributed the US$2 billion cost increase to additional construction hours and quantities of materials required to complete the second phase of the project.
- BHP plans to record a US$2.3 billion writedown on the project, as stage two costs jumped 41 per cent according to the latest company update.
- First production from phase one is expected next year, though costs for that stage also jumped in January, rising to US$8.4 billion from US$7.4 billion.
- Incoming chief executive officer Brandon Craig stated the combined project will be a "low cost, long life asset" with a 60-year mine life, promising long-term shareholder benefits.
Insights by Ground AI
20 Articles
20 Articles
BHP flags cost overrun at Jansen potash project, to book $2.3 billion charge
BHP Group on Thursday warned of cost overruns at its Jansen Stage 2 potash project in Canada and said it will book a $2.3 billion charge as higher costs and additional labour hours drive up spending and delay first production.
·New York, United States
Read Full Article
Father's Day SaleGet 40% off Vantage subscriptions for yourself or a friend.Get Started
Coverage Details
Total News Sources20
Leaning Left3Leaning Right6Center4Last UpdatedBias Distribution46% Right
Bias Distribution
- 46% of the sources lean Right
46% Right
L 23%
C 31%
R 46%
Factuality
To view factuality data please Upgrade to Premium
