BHP reaches ‘significant milestone’ at Jansen mine

One of the world’s largest mining companies has struck potash in Saskatchewan.

Five years after committing $2.6 billion to sink a pair of kilometre-deep shafts at its Jansen mine project, BHP confirmed drilling crews reached potash deposits 924 metres below ground last month.

While the multibillion-dollar mine has yet to be sanctioned by the Anglo-Australian mining giant’s board, Giles Hellyer, the company’s vice-president of potash operations, said reaching potash was a “significant milestone.

“Shaft sinking is technical and complex,” Hellyer said in an emailed statement.

“The ongoing sinking and completion of the shafts over the next couple of years will help us reduce the development risk of this greenfield project and give us access to what we believe is one of the world’s best undeveloped potash resources.”

The company, formerly known as BHP Billiton, has to date committed a total of $3.8 billion to the mine, located 140 kilometres east of Saskatoon, not far from Humboldt.

BHP reported in February work on the twin shafts was 75 per cent complete. According to the company, the production shaft will bottom out at 975 metres, while the service shaft will be one kilometre deep.

Last spring, BHP announced Jansen could be approved by as early as June and in production by 2023. Months later, the company delayed that decision, saying it would not go to the board for final approval in 2018.

In an emailed statement, the company confirmed it is using the additional time to “enhance the project economics,” study the market and look for a partner to “acquire a minor stake” in the massive mine project.

Analysts’ estimates of the total cost of bringing Jansen into production vary, but the mine — should it proceed — is thought to represent the largest corporate investment in Saskatchewan history.