BHP flags $1.7bn cost overrun at Canada fertiliser project
By Frank Prenesti
Date: Friday 18 Jul 2025
(Sharecast News) - Australian mining giant BHP flagged a cost overrun of up to $1.7 billion at its Jansen potash fertiliser project in Canada and also reported record copper and iron ore output.
The company also flagged a delay in first production to mid-2027 and said it now expected to spend between $7bn - $7.4bn for the first stage of the Jansen project, from an original estimate of $5.7bn.
BHP cited inflation and design changes, leading to cost increases and delays, for the budget blowout. The company is betting on the project as it tries to diversify away from iron ore and coal.
Copper output hit a record high of 2.02 million metric tons (Mt) in the 2025 fiscal year. However, it expected this to fall to between 1.8 Mt and 2.0 Mt next year, due to planned lower grades at its flagship Escondida mine in Chile.
Iron ore production at its Western Australia operation came in at 290 Mt for the year, also a record high.
BHP also said it was looking at a potential divestment of its Western Australia nickel assets as part of a review, citing balance sheet impacts from the nickel business.
Reporting by Frank Prenesti for Sharecast.com
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