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Canada

Jansen Project

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Overview

Mine TypeUnderground
StageConstruction
Commodities
  • Potash
Mining Method
  • Continuous
  • Room-and-pillar
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SnapshotThe Jansen project has the potential to be the largest potash-producing mine in the world and is expected to operate for up to 100 years, providing a rich source of potassium for soil fertilisation purposes and hence supporting food production.

Jansen S1 is tracking in line with plan and was 26 per cent complete as at 30 June 2023. During FY2023, BHP completed all piling activities for the mill and storage facilities. The feasibility study for Jansen Stage 2 continues to progress and is on track to be completed during FY2024.

Studies for Jansen Stage 2 (JS2) are progressing. If approved by the BHP Board, JS2 may increase optionality and strengthen capital efficiency and operational productivity. JS2 is expected to add an additional 4 Mtpa of potash at full production capacity, with a possible first production estimated to occur in FY2029.

During FY2024, BHP intend to transition from civil works into steel and equipment installation on the surface and underground.

Owners

SourceSource
CompanyInterestOwnershipInvestor's Info
BHP Group Ltd. 100 % Indirect
BHP Canada Inc. (operator) 100 % Direct
BHP Group Limited has a 100 per cent ownership of Jansen. The Jansen project is wholly owned and operated by BHP Canada Inc.

Contractors

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Deposit type

  • Evaporite

Summary:

Potash is the common name given to a group of minerals and chemicals that contain potassium (K) which is a basic nutrient for plants and an important ingredient in fertilizer. Potash is produced as potassium chloride (KCl) in Saskatchewan from sylvinite rock that is a mixture of Sylvite (KCl) and Halite (NaCl) minerals. The KCl content is measured and refer to it in terms of potassium oxide (%K2O) equivalence. %K2O grade is equivalent to KCl content using the mineralogical conversion factor of 1.583. Jansen potash deposit is composed of combinations of halite (NaCl), sylvite (KCl) with variable mounts of disseminated insolubles and clay seams.

The Jansen potash deposit is located within the Williston Basin, a large, intracratonic, horizontally bedded sedimentary basin.

The potash beds are hosted within the Prairie Evaporite (PE) formation, in regionally extensive, horizontal layers during the repeated, cyclical evaporation of a shallow, inland sea during the Devonian period.

In Jansen, the potash is at a depth of approximately 800 metres to approximately 1,050 metres. Two Potash members are present in Jansen those being the Patience Lake and Belle Plaine members. The Patience Lake member is further subdivided into Upper Patience Lake (UPL) and Lower Patience Lake (LPL) sub-members. The LPL sub-member is the potash horizon targeted for Jansen. The LPL sub-member is composed of sylvite (KCl), halite (NaCl) with variable amounts of disseminated insolubles and clay seams. Carnallite (KCl.MgCl2.6H2O), a mineral which can impact processing and ground stability, occasionally occurs in place of sylvite within the potash layer.

The potash deposit extends from east to west in the province and, based on information available to date, shows relative uniformity, except where there are anomalies due to local dissolutions of the potash beds or clay seams. The main types of anomalies are called washout, leach and collapse anomalies.

Local Geology
During the Middle Devonian period, the Alberta Basin and the Williston Basin formed one larger unit, the Elk Point Basin, which was connected to the ocean in the northwest. Later, basin restrictions began to increase its salinity and induced the deposition of the Prairie Evaporite (PE) which hosts the potash bearing members. Middle Devonian cyclic deposition continued with Manitoba Group and Saskatchewan Group after the Elk Point Group sediments. The Jansen potash deposit is located within the Williston Basin, a large, intracratonic, structurally simple, and horizontally bedded sedimentary basin. The Williston Basin extends from southern Saskatchewan, Canada into the northern states of the United States of America.

Deposition of sediments in the basin began during the Cambrian geological time period, followed by an intense period of limestone, dolomite, evaporite, sandstone, and shale deposition during the geological time periods Ordovician, Silurian, and Devonian ending with Cretaceous sediments.

Deposition of sediments in the basin began during the Cambrian geological time period, followed by an intense period of limestone, dolomite, evaporite, sandstone, and shale deposition during the geological time periods Ordovician, Silurian, and Devonian ending with Cretaceous sediments. The potash beds are approximately 900 metres below surface, at the top of the PE Formation which conformably overlies the predominantly carbonate layers of Winnipegosis Formation. There are three main potash bearing members present in the PE Formation. Two are present in the Jansen area, those being the Patience Lake and Belle Plaine members. The Patience Lake member is further subdivided into Upper Patience Lake (UPL) and Lower Patience Lake (LPL) sub-members.

The LPL sub-member is the potash horizon targeted for Jansen. These potash members were deposited in regionally extensive (hundreds of kilometres), horizontal layers during the repeated, cyclical periods of evaporation of a shallow, inland sea during the Devonian Period. Mineralization within the potash layers consists of a layered, repetitive sequence of sylvite (KCl) with halite (NaCl) and thin layers of insoluble dolomitic clay material (clay seams). Carnallite (KCl.MgCl2.6H2O), a mineral which can impact processing and ground stability, occasionally occurs in place of sylvite within the potash layer.

The Dawson Bay formation, includes the Second Red Beds member and the Dawson Bay carbonate members on top and overlays the PE Formation.

Approximately 400 metres below the PE Formation are the Cambrian-Ordovician Winnipeg and Deadwood formations. Sediments of these formations were deposited in near shore, shallow water marine environments on top of the Precambrian rocks. The coarse to fine sands of the formations, host a vast deep saline aquifer that is used for brine disposal.

Mineral Deposit
The Jansen Lower Patient Lake (LPL) sub-member is hosted within the Prairie Evaporite (PE) Formation, and was deposited in regionally extensive, horizontal layers during the repeated, cyclical evaporation of a shallow, saltpan environment during the Devonian period. LPL potash is composed of combinations of halite (NaCl), sylvite (KCl) with variable amounts of disseminated insolubles and clay seams.

The LPL is subdivided into four mineralization cycles for detailed geological characterization of the potential mining horizon. The LPL sub-member is an approximately five metres thick potash unit interspersed with thin clay seams. The LPL top is marked by a clay seam (named the 406) that is overlain by an approximately 2.5 metres thick halite unit. The bottom of the LPL unit is marked by a clay seam (named the 401). The mineralization of the LPL is restricted to the 406 to 401 interval. The clay seams are consistent throughout the potash basin and the Jansen area and can be easily correlated between the drill holes.

Safe mining practice in the Prairie Evaporate Formation requires a competent rock immediately above the top of the LPL sub-unit. The interval clay seams, mainly consists of halite with some minor insoluble bands, traditionally known as the Shadow band (SB) and Henry Marker (HM). These are considered potential geotechnical hazards as they, in some areas, weaken the mining roof and may require extra ground support or additional cutting and increase the dilution. Their effect was taken into account in reserve calculations.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnitsAvg. Annual
Potash Mt 4.4
All production numbers are expressed as salt.

Operational metrics

Metrics
Hourly processing capacity  ....  Subscribe
Annual ore mining rate  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
* According to 2022 study.

Production Costs

CommodityUnitsAverage
Cash costs Potash USD  ....  Subscribe
Assumed price Potash USD  ....  Subscribe
* According to 2022 study / presentation.

Project Costs

MetricsUnitsLOM Total
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Closure costs $M USD  ......  Subscribe
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Total OpEx $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax NPV @ 6.5% $M USD  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

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Aerial view:

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