BHP Shares Fall After $2.3 Billion Writedown on Potash Mine (opens original article in a new tab)

BHP shares dropped after announcing a $2.3 billion writedown on its Canadian potash mine expansion due to cost overruns, with revised costs now at $6.9 billion and reduced expected returns.

• BHP shares fell 5.6% in Sydney trading after a $2.3 billion writedown on its Canadian potash mine expansion
• Phase two of the Jansen mine development now costs $6.9 billion, up from $4.9 billion due to cost and time overruns
• Barclays analysts estimate BHP has spent $20.3 billion on the project, with $4.1 billion impaired so far
• Expected internal rate of returns for the project have declined to 7.1%, half of previous estimates
• BHP decided to proceed with the Jansen expansion in 2023 amid rising fertilizer prices after Russia's invasion of Ukraine, but prices have since fallen