The Financial Post reports in its Thursday, Sept. 19, edition that BHP Group expects its $10.6-billion potash mine in Canada to remain profitable despite weakened fertilizer prices, according to the project's leader, Karina Gistelinck (all figures U.S.). A Bloomberg dispatch to the Post reports that the Jansen mine is projected to produce potash at costs lower than those of the leading Canadian operations of fertilizer giants Nutrien and Mosaic. BHP's significant investment in automation is crucial in keeping costs down. Despite a more than 60-per-cent drop in potash prices from their peak two years ago, BHP remains optimistic about the Jansen mine's profitability. The world's biggest miner had already committed $5.7-billion to building the first stage of Jansen in Saskatchewan back in August, 2021. Two years later, BHP earmarked an additional $4.9-billion for an expansion due to its confidence in the potash market. The spending is on top of an earlier $4.5-billion investment in the area. After Jansen's approval, fertilizer flows from Russia and Belarus have increased, lowering potash prices. BHP's flagship mine is now expected to add millions of tons to a balanced market, rather than the anticipated supply shortage.
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