Westshore Terminals Investment : BHP Gives Green Light To Jansen Potash Project In Saskatchewan, Canada
September 28, 2021 at 02:10 am EDT
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The Agribusiness sector is one of Canada's fastest growing industries that is deeply woven into our economic, technological and social fabric. This article is part of a series focusing on various aspects of this unique and fast moving industry.
On August 17, 2021, BHP announced its approval of $7.5 billion in capital expenditures for its Jansen Stage 1 potash project (the Jansen Project) located in Saskatchewan, Canada.
What you need to know
BHP has approved investing a total in excess of $13 billion to complete the Jansen Project, with its recent approval of $7.5 billion in addition to the roughly $5.7 billion already spent to construct the mine.
The Jansen Project is expected to produce 4.35 million tonnes of potash per year.
Production of potash is anticipated to begin in 2027.
Potash product will be shipped to export markets through Westshore Terminals, in Delta, British Columbia, Canada.
Summary
The Jansen Project was originally announced over ten years ago. At the time, it was proclaimed as what would become the largest potash mine in the world. To date, roughly $5.7 billion has been spent on the construction of mineshafts and associated infrastructure, as well as engineering, procurement activities, and preparation works related to underground infrastructure.
After years of delays, BHP has given the green light to move forward with the Jansen Project, approving $7.5 billion in additional capital expenditures.
The Jansen Project includes the engineering, design, and construction of an underground potash mine, as well as surface infrastructure including a processing facility, a product storage building, and a continuous automated rail loading system. BHP also announced that potash from the Jansen Project will be shipped to export markets through Westshore Terminals, in Delta, British Columbia, Canada.
The Jansen Project is expected to produce approximately 4.35 million tonnes of potash per year, with the opportunity for further expansion. Construction of the mineshafts is expected to be completed in 2022, and the first potash ore is expected to be produced in 2027.
Located 140km east of Saskatoon, the Jansen Project represents the single largest private economic investment in Saskatchewan history. BHP's Jansen Project will join K+S Potash Canada's $4.1-billion Bethune Mine, and Mosaic's $3-billion Esterhazy K3 Project on the list of major potash mines located in Saskatchewan, Canada.
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Mr Aaron Bowler
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Westshore Terminals Investment Corporation is a Canada-based company, which owns all of the limited partnership units of Westshore Terminals Limited Partnership (Westshore). The Company invests in Westshore by way of distributions on Westshore's limited partnership units. Westshore operates a coal storage and unloading/loading facility at Roberts Bank, British Columbia. Westshore receives handling charges from its customers for throughput volume. Coal is delivered to the Terminal in unit trains operated by Canadian Pacific Railway, BNSF Railway, and Canadian National Railway. The product is unloaded and either directly loaded onto a ship or stockpiled for future ship loading. The loaded ships are then destined around the globe to approximately 16 different countries. Westar Management Ltd. (the Manager) provides management services to Westshore and administrative services to the Company. The manager also provides insurance and vehicle leasing services to the Company.