Sandvik Mining and Rock Solutions has been awarded a contract from BHP for the Jansen Potash project, located in the province of Saskatchewan, Canada. The contract follows several years of close collaboration with the customer, BHP, to develop the underground mining equipment and automation solution.
The total contract value is approximately SEK 2 billion and the delivery period of the equipment is expected to commence in 3Q23 and extends to 2026. An order value of approximately SEK 500 million will be reported in each of the 1Q22, 2Q22 and 4Q22, as well as in 2Q23.
The Jansen project has the potential to be the largest potash-producing mine in the world and is expected to operate for up to 100 years, providing a rich source of potassium for soil fertilization purposes and hence supporting food production. Start of the production is targeted for calendar year 2027.