The Globe and Mail reports in its Saturday edition that Australia's BHP Group said inflation and other pressures could lead to a cost overrun of as much as 30 per cent at its multibillion-dollar Jansen potash mine in Saskatchewan. The Globe's Jeffrey Jones writes that BHP also said it is pushing back the project's scheduled start-up by at least six months. It said it remains committed to completing the mine. The rising costs and delay at Jansen were the sole shortcomings in a fiscal fourth-quarter operational update that showed record copper and iron ore production elsewhere in its global business. BHP said the first phase of the Jansen project, 150 kilometres east of Saskatoon, could cost $7-billion to $7.4-billion, up from its initial estimate of $5.7-billion (all figures U.S.). It blamed the projection on "inflationary and real cost escalation pressures, design development and scope changes, and our current assessment of lower productivity outcomes over the construction period." BHP's cost overrun and delay represents a setback for the company, but could be positive for global potash prices in 2026 and 2027, owing to tighter-than-expected supplies, Bank of Nova Scotia analyst Ben Isaacson said in a research note.
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