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BHP Hikes Jansen Stage 2 Project Investment After Detailed Review
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Key Takeaways
BHP lifted Jansen Stage 2 investment to $6.9B, with first production slated for late FY31.
BHP expects Stage 2 to produce 4.36M tons annually with an 11% internal rate of return.
BHP expects $2.3B in impairment charges tied to higher capital intensity for Jansen stages.
BHP Group Limited (BHP - Free Report) announced that it is increasing its investment in the Jansen Stage 2 project following the completion of a detailed review. BHP expects total investment for the project to be $6.9 billion, up from the previously mentioned $4.9 billion. Initial production is expected in late fiscal 2031.
In August 2025, BHP announced an extension for Jansen Stage 2, delaying first production from fiscal 2029 to fiscal 2031. The increase in investment reflects this delay, alongside cost escalation, increased material quantities and extra construction hours identified as part of the comprehensive review.
As of May 31, 2026, the Jansen Stage 2 project is 16% complete. The engineering is 83% complete, de-risking the estimates for the project's outstanding work. The company expects Stage 2 to produce 4.36 million tons per annum. BHP has revised the project’s internal rate of return to 11%, with an expected payback period of eight years. The low-cost position ensures that the project’s underlying EBITDA margins remain above 65%.
BHP is also advancing the Jansen Stage 1 potash project, a large-scale, low-cost, high-grade resource with a mine life exceeding 100 years. BHP is working toward its first production by mid-2027. These investments will transform Jansen into one of the world’s largest potash mines, doubling production capacity to 8.5 million tons per year, positioning BHP as a major global producer of potash by the end of the decade.
BHP expects to recognize $2.3 billion in impairment charges (before and after tax) on its investment to date in the Jansen project. This is due to the higher forecasted capital intensity for both stages and potential future expansions.
BHP Stock's Price Performance
BHP Group’s shares have surged 95.6% in the past year compared with the industry’s 57.2% growth.
Image Source: Zacks Investment Research
BHP’s Zacks Rank & Other Stock to Consider
BHP Group currently carries a Zacks Rank #2 (Buy).
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 181% so far this year.
The Zacks Consensus Estimate for CF Industries’ current-year earnings is pegged at $17.16 per share, indicating an 83% year-over-year surge. CF has an average trailing four-quarter earnings surprise of 11.4%. CF Industries’ shares have gained 21.4% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 90.5% in a year.
View the Zacks #1 Rank List
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BHP Hikes Jansen Stage 2 Project Investment After Detailed Review
Key Takeaways
BHP Group Limited (BHP - Free Report) announced that it is increasing its investment in the Jansen Stage 2 project following the completion of a detailed review. BHP expects total investment for the project to be $6.9 billion, up from the previously mentioned $4.9 billion. Initial production is expected in late fiscal 2031.
In August 2025, BHP announced an extension for Jansen Stage 2, delaying first production from fiscal 2029 to fiscal 2031. The increase in investment reflects this delay, alongside cost escalation, increased material quantities and extra construction hours identified as part of the comprehensive review.
BHP’s Jansen Stage 2 Targets 4.36M Tons Annual Output
As of May 31, 2026, the Jansen Stage 2 project is 16% complete. The engineering is 83% complete, de-risking the estimates for the project's outstanding work. The company expects Stage 2 to produce 4.36 million tons per annum. BHP has revised the project’s internal rate of return to 11%, with an expected payback period of eight years. The low-cost position ensures that the project’s underlying EBITDA margins remain above 65%.
BHP is also advancing the Jansen Stage 1 potash project, a large-scale, low-cost, high-grade resource with a mine life exceeding 100 years. BHP is working toward its first production by mid-2027. These investments will transform Jansen into one of the world’s largest potash mines, doubling production capacity to 8.5 million tons per year, positioning BHP as a major global producer of potash by the end of the decade.
BHP expects to recognize $2.3 billion in impairment charges (before and after tax) on its investment to date in the Jansen project. This is due to the higher forecasted capital intensity for both stages and potential future expansions.
BHP Stock's Price Performance
BHP Group’s shares have surged 95.6% in the past year compared with the industry’s 57.2% growth.
BHP’s Zacks Rank & Other Stock to Consider
BHP Group currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the basic materials space are Albemarle Corporation (ALB - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) . ALB flaunts a Zacks Rank #1 (Strong Buy) at present, and CF and ASM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 181% so far this year.
The Zacks Consensus Estimate for CF Industries’ current-year earnings is pegged at $17.16 per share, indicating an 83% year-over-year surge. CF has an average trailing four-quarter earnings surprise of 11.4%. CF Industries’ shares have gained 21.4% in a year.
Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 90.5% in a year.