Billion-dollar copper project to deliver local benefits

BHP’s Canadian potash bill hits $12.5b after second cost reset BHP (ASX: BHP) has lifted the forecast cost of Jansen Stage 1 to $12.5b (US$8.4b), up from the initial $8.4b ($US5.7b) estimate in August 2021.The increase follows a July 2025 budget update which put the cost in the $10.4-$11b (US$7b-7.4b) range. At the time, BHP said the cost increases had been driven by inflationary and real cost escalation pressures, design development and scope changes and lower productivity outcomes.BHP says the latest uplift has been driven by construction hours and materials that were not included in previous estimates.First production has reverted to the original schedule and is now expected in mid CY27.The miner expects to update the market on the investment expenditure estimate for Jansen Stage 2 in Q4 FY26.BHP says the project has the potential for two additional expansions to reach an ultimate production capacity of 16-17mtpa.In other commodities, BHP saw strong operational performance and guidance upgrades for H1 FY26.BHP has increased its FY26 production guidance range for copper to 1900kt – 2000kt, with the miner hoping to capitalise on a 32% increase in copper prices.BHP chief executive Mike Henry says the company is investing for the decade ahead, with a significant copper growth pipeline and a pathway to about 2mt of attributable copper production in the 2030s.“We have increased FY26 group copper production guidance off the back of stronger delivery across our assets,” he said.“Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the FY26 production guidance range.“Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output.”In iron ore, WAIO achieved record H1 FY26 production and shipments despite ongoing negotiations with China Mineral Resources Group (CMRG).Volumes from Samarco increased as a result of stronger performance at the second concentrator following ramp up, and higher feed grades and recoveries.BHP’s steelmaking coal production in Q2 FY26 was down 12% from Q1 due to ongoing geotechnical challenges impacting underground performance and higher rainfall which impacted stripping.

The Queensland Government has declared a $662m extension proposal of Peabody Energy’s Centurion coal mine as a coordinated project. 

UGL to construct Stage 3 of Western Downs batteryThe CIMIC Group’s specialist engineering and services provider, UGL, has been selected by Neoen and Tesla to construct Stage 3 of the 305MV/1220MWh Western Downs battery in Queensland.This follows UGL’s successful delivery of Stage 1 and early completion of Stage 2 (270MW / 540MWh) in November.For Stage 3, UGL will install 312 Tesla Megapack 2XL units, along with high-voltage infrastructure, control and switchroom facilities, earthworks and footings. UGL will also provide testing and commissioning support to ensure seamless integration to the grid.Together, Stage 1 and Stage 2 provide 540MW/1080MWh of storage capacity. Once Stage 3 becomes operational, the battery will offer a combined total of 845MW/2.3GWh.ACS group and HOCHTIEF chief executive and CIMIC Group executive chairman Juan Santamaria comments on the major renewable energy storage project.“Stage 3 of the Western Downs Battery will add 305MW/1220MWh of storage capacity to Queensland’s energy network, building on the success of Stages 1 and 2 delivered by UGL,” he said.“This expansion strengthens grid reliability and supports the integration of renewable generation in one of Australia’s most important energy corridors.”UGL managing director Doug Moss comments on Stage 3.“Western Downs Battery Stage 3 will be our tenth battery installation project and our seventh in partnership with Neoen and Tesla,” he said.“As a leader in constructing and commissioning renewable energy assets and connecting them to the grid, we are helping to accelerate Australia’s energy transition.”Construction on Western Downs Battery Stage 3 will commence February 2026 with completion expected in the summer of 2027/28.

Rio and BHP eye Pilbara iron ore deal Rio Tinto (ASX: RIO) and BHP (ASX: BHP) will work together to extract up to 200mt from their neighbouring Pilbara iron ore operations, Yandicoogina and Yandi.This follows BHP’s wind down of operations at the Yandi mine as the ore body nears depletion. In late October, BHP had begun informing its workforce that operations would be scaled back over the next year before ceasing all together.BHP first proposed scaling down operations at Yandi in 2017 but strong demand for iron ore led to multiple life-of-mine extensions.Under two non-binding agreements, Rio and BHP will assess a potential collaboration to develop Rio’s Wunbye deposit and for BHP to supply Yandi Lower Channel Deposit ore for processing at Rio’s existing wet plants.Rio Tinto iron ore chief executive Matthew Holcz says by working smarter, the companies can better leverage existing infrastructure to unlock additional production with minimal capital requirements.“Together we will extend the life of these operations, create additional value and further support WA jobs and local communities,” he said.BHP WA iron ore asset president Tim Day says this is a clear example of productivity in action.“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities,” he said.Subject to a final investment decision, first ore from both deposits is anticipated early next decade.