Sandvik secures major deal with BHP for Jansen Potash expansion

Sandvik Mining and Rock Solutions has been awarded a substantial contract by BHP to supply three additional underground continuous mining systems for the Jansen Potash Stage 2 Project in Saskatchewan, Canada. The contract, valued at approximately SEK 1.9 billion (USD 184.56 million), follows a SEK 2 billion (USD 184.56 million) contract for Stage 1 of the project, which is currently underway.

The Jansen Potash Project is poised to become the world’s largest potash mine, offering a critical resource for fertilizer and global food production. This new contract underscores the ongoing collaboration between Sandvik and BHP, which has been focused on the advancement of underground mining technologies over several years.

The newly awarded contract is set to have significant financial milestones, with approximately SEK 500 million (USD 46.4 million) reported in the third quarter of 2024, followed by SEK 400 million (USD 37.1 million) in each of the second and third quarters of 2025. The remaining order value is anticipated to be recognized in the second quarter of 2026. Delivery of the systems is scheduled to commence in 2028 and extend into 2029.

The contract includes the supply of Sandvik’s MF460 borer miner and the PO140 extendable conveyor continuous haulage system. The MF460 is designed to cut widths of up to 6.3 meters and heights of up to 4.36 meters, capable of executing one cut and return cuts up to 2 kilometers in length. Each system is expected to produce between 1,300 and 1,500 tonnes per hour.

Thomas Vallant, President of Mechanical Cutting at Sandvik, noted that the development of this advanced potash mining system is the culmination of over 15 years of close collaboration with BHP. He emphasized that the Sandvik MF460 represents an ideal blend of precision and efficiency, promising enhanced productivity and reliability for the Jansen projects for years to come.