Sandvik Mining and Rock Solutions has been awarded a contract from BHP for the Jansen potash project, located in the province of Saskatchewan, Canada. The contract follows several years of close collaboration with the customer BHP to develop the underground mining equipment and automation solution. Sandvik confirmed to IM that the contract will include its borer miner technology.

The total contract value is approximately SEK 2 billion (about US$216 million) and the delivery period of the equipment is expected to commence in the third quarter 2023 and extends to 2026. An order value of approximately SEK 500 million will be reported in each of the first, second and fourth quarter in 2022, as well as in the second quarter of 2023. The 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. Start of the production is targeted for calendar year 2027.

In its half year results to end-December 2021, BHP stated that its potash developments are tracking to plan. It added that the Jansen shaft project at end-2021 was 98% complete (target project completion in CY22) and the Jansen Stage 1 project has commenced contract awards. The shaft project involves the excavation and lining of the production and service shafts and continuing the installation of essential surface infrastructure and utilities. Stage 1 involves design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.35 Mt/y. Stage 1 was 3% complete at end-2021.