The Australian mining giant BHP has secured two rail deals worth CAD 3.6 billion (GBP 2.1 billion) for its Jansen potash mine in Saskatchewan, Canada. The deals, which were announced on 31 May, will provide a vital transportation link for the mine's projected 8 million tonnes of annual production. The Jansen potash mine is expected to be one of the largest mines of its kind in the world.
The rail deals will see BHP partner with Canadian National Railway (CNR) and CNR's subsidiary, CNRL Rail, to transport ore from the mine to the port of Prince Rupert. The transportation link will enable the mine to produce 8 million tonnes of potash per year, which is expected to meet 10% of global demand. The mine is expected to create thousands of jobs in the region, both during construction and once operational.
The Jansen potash mine is part of BHP's efforts to expand its fertilizer business, which is a key growth area for the company. BHP has stated that it aims to become a leading producer of fertilizers, with the Jansen mine playing a key role in this strategy.
The rail deals are a significant milestone for the Jansen potash mine, which has been under development since 2014. The mine is expected to be operational by 2026, with production ramping up to full capacity by 2028.