KEY POINTS
- BHP sees Brazil as one of the top three markets for its Jansen potash project.
- The first phase of the project in Canada will produce 4.2 million metric tons annually by 2026.
- BHP is building long-term relationships with Brazilian buyers to secure the market.
BHP, the Australian mining giant, is positioning Brazil as one of the top three markets for its major potash project in Canada. Carla Wilson, the company’s general manager in Brazil, emphasized the strategic importance of Brazil as BHP develops the Jansen potash project, set to come online in 2026.
Brazil, a global agricultural powerhouse, imports most of its fertilizer, including potash, an essential nutrient for food production. According to a report by Mining.com, the demand for potash in Brazil makes the country a critical focus for BHP’s operations as the miner builds long-term relationships with potential buyers.
Brazil’s key role in potash market
According to Wilson, “Brazil is expected to be one of the top three markets for BHP for potash. So it’s very, very important for us.” The first phase of the Jansen project is projected to have an annual production capacity of 4.2 million metric tons. BHP has invested $5.7 billion in this phase, with the second phase set to double production at an additional cost of $4.9 billion.
The company is solidifying its presence in Brazil by connecting with local buyers, who will play a significant role in its sales strategy. Wilson noted that the first phase of the Canadian project is currently over 50% complete. “At this point, we’re just slowly starting to build our presence and starting to build those long-term relationships with customers here,” she added.
Jansen potash project and global potash demand
The Jansen potash project, located in Saskatchewan, Canada, is one of BHP’s most ambitious ventures, designed to meet the growing global demand for potash, particularly in markets like Brazil. As a vital component in fertilizers, potash plays a crucial role in ensuring global food security. BHP’s focus on Brazil aligns with the country’s increasing need for agricultural inputs to support its large-scale food production.
The mine’s first phase, scheduled for completion by 2026, will be key in supplying Brazil’s agricultural sector, which heavily depends on imports to meet its fertilizer needs. With production from Jansen, BHP aims to reduce Brazil’s reliance on potash imports from other regions and establish a steady supply from Canada.
BHP’s total planned investment of $10.6 billion in the two phases of the Jansen project highlights the company’s long-term commitment to potash production. The mine’s development is progressing steadily, and Brazil’s agricultural demand makes it an attractive market for BHP. The company’s strategy is to secure a major portion of Brazil’s potash market by offering a reliable supply from its Canadian project.
