BHP, Sandvik extend mining system partnership at Jansen potash project

BHP has extended its long-term partnership with Sandvik Mining and Rock Solutions by ordering three more underground continuous mining systems for Stage 2 of its Jansen potash project in Saskatchewan. The contract has a value of approximately 1.9 billion Swedish Krona ($180 million).

The Jansen project is currently in the Stage 1 construction phase, which BHP recently said is at the midway point of completion and on track for first production in late 2026. Stage 2 production is expected to follow after a three-year ramp-up period.

The new contract follows several years of collaboration and the ongoing execution of the Stage 1 project, for which BHP awarded Sandvik a contract to supply four potash underground continuous mining systems in 2022.

Deliveries of the systems for Stage 2, for which construction is also underway and at the 2% completion mark, are expected to begin in 2028 and continue through 2029, when it’s scheduled to enter production.

“We are proud to continue our partnership with BHP and strengthen our collaboration further with this new order for three additional systems,” Sandvik Mining and Rock Solutions president Mats Eriksson said in a news release.

Each mining system consists of a cable-powered Sandvik MF460 borer miner and a Sandvik PO140 extendable conveyor continuous haulage system. Sandvik MF460 will cut widths of 6.3 metres and heights of up to 4.36 metres per cut, with one cut and return cut up to 2 kilometres in length. Each integrated system is capable of producing around 1,300-1,500 tonnes per hour.

BHP commissioned Sandvik to do the engineering design of Sandvik MF460 from 2010 to 2012. With the borer miner’s high-volume production creating a materials handling challenge, BHP also commissioned Sandvik to concept design and test a simple version of Sandvik PO140 in 2014.

Following successful testing, the companies signed a manufacturing and testing agreement for one Sandvik MF460 and one Sandvik PO140 in 2016. The complete system proved highly productive during tests at the SWS (Südwestdeutsche Salzwerke AG) salt mine in Germany from 2018 to 2021, doubling the industry benchmark for tonnes per hour, Sandvik said.

Improvements were identified and designed for these systems to further increase their productivity and reliability, including installing ground support roof boltings while cutting and loading, reducing turnaround and relocation time and remote operations potential.

The Jansen project has the potential to be one of the largest potash mines in the world, capable of producing approximately 8.5 million tonnes of the key fertilizer ingredient per year.