BHP Group faces a potential $1.7bn cost overrun at its Jansen potash project in Canada, pushing production to mid-2027. This setback is due to increased costs, design changes, and lower productivity, with the first stage now estimated to cost $7bn to $7.4bn, up from $5.7bn.

Despite the challenges at Jansen, BHP achieved “record” copper output exceeding two million tonnes in FY25. However, lower grades at the Escondida mine in Chile are expected to decrease copper production to 1.8mt-2mt in FY26. Iron ore production in Western Australia reached 290mt.

BHP is contemplating a two-year delay for the second stage of the Jansen project to FY31, aligning with expected potash supply increases. The company is also evaluating the potential sale of its Western Australia Nickel assets following a temporary suspension due to market conditions. Review set for February 2027.

In a move to optimize operations, BHP announced a collaboration with XCMG Mining Equipment to provide fleet solutions globally. Despite challenges at Jansen, BHP remains focused on operational excellence, with strong copper and iron ore production in FY25, aiming to navigate evolving market conditions effectively.

Read more at Yahoo Finance: BHP faces $1.7bn blowout at Jansen project, production pushed to mid-2027