What is the size of the impairment charge BHP will book for the Jansen Stage 2 potash project, and what are the main drivers behind it?

BHP will book a $2.3 billion impairment charge for the Jansen potash project. The charge stems from significant cost overruns and schedule delays in Stage 2, driven by inflationary and real cost escalation, design development and scope changes, lower productivity outcomes, and additional labour hours and material quantities required to complete the project.

How have BHP's cost and timeline estimates changed for Jansen Stage 1 and Stage 2, and when is first production now expected for each stage?

For Jansen Stage 1, the total investment estimate is now $8.4 billion — nearly 50% higher than the amount approved in 2021 — and it remains on track for first production in mid-2027. For Stage 2, the total investment estimate has risen to $6.9 billion from $4.9 billion approved in 2023, with first production delayed to late financial year 2031.

BHP Flags Cost Overrun at Jansen Potash Project, To Book $2.3 Billion Charge

Jun 18, 2026

BHP Group booked a $2.3 billion charge due to cost overruns at its Jansen potash project, delaying first production to late 2031. The setback impacts global fertiliser supply plans amid rising inflation and design changes.

reuters

2026-06-18

BHP Flags Cost Overrun at Jansen Potash Project, To Book $2.3 Billion Charge

2026-06-18

BHP Shares Head for Worst Day in Over 3 Months on Jansen Project Cost Overruns, $2.3 Billion Hit

BHP Flags Cost Overrun at Jansen Potash Project, To Book $2.3 Billion Charge

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