BHP Group faces mounting costs at its Jansen potash project in Saskatchewan, Canada, raising the second-stage budget by $2 billion to $6.9 billion and preparing a $2.3 billion impairment charge. The world's largest miner by market value disclosed the revised figures on Thursday, reflecting persistent cost pressures that have plagued the development since its 2021 approval.

Costs for the first stage escalated from an initial $5.7 billion forecast to $8.4 billion, while the second stage's budget jumped from $4.9 billion to $6.9 billion. Production for stage one is slated for next year, with stage two targeted for late fiscal 2031. BHP's review followed rising expense trends across both phases of the Canadian operation.

The impairments signal significant markdowns on assets that were once seen as strategic growth drivers. Potash prices have been volatile, and the cost overruns threaten the project's long-term profitability. Investors will scrutinize BHP's guidance on future capital allocation as the miner absorbs these charges and reassesses its expansion strategy.