Photo Credit: BHP

After the NDP criticized the Saskatchewan government in the wake of Monday’s release of BHP’s annual financial report which indicated that the timeline for both Stage One and Stage Two of the Jansen Potash Mine would be pushed back, the mining giant issued a statement.

Stage Two of the Jansen Potash Mine will be pushed back two years to 2031, and the start of Phase One would be delayed 18 months to the middle of 2027,

Tuesday NDP Economy Critic Trent Wotherspoon says the current government has created an environment not suitable for large-scale projects, and it’s hurting Saskatchewan’s economy.

BHP responded today releasing a statement which says, “The Saskatchewan Government has been very supportive of business investment. The extension at our Jansen project has nothing to do with the investment climate in Saskatchewan.” As well the mining giant says the delay of Stage 1 is actually reverting back to the original schedule for the project.

BHP says the company has encountered higher inflation and cost escalation than anticipated, and lower productivity on certain aspects of the project – particularly, more recently, as they’ve progressed surface works.

Describing it as a multi-decade opportunity for BHP, the company says it is building Jansen to be scalable in response to the long-term demand for potash expecting to “benefit from rising population, changing diets and the need for more sustainable and efficient use of arable land for agriculture.”

And BHP stressed that it remains strongly committed to the Jansen project. A recent Fraser Institute Annual Survey of Mining Companies says on overall investment attractiveness, Saskatchewan ranks in the global top ten for the sixth time in seven years, and in terms of policy factors alone, Saskatchewan ranks in the global top three.