Home industry supply-chain-management bHP says supply disruptions may last for years; firm may speed up Jansen project
Supply Chain Management
CIO Bulletin
2022-05-18
The CEO of BHP Group, the world’s largest listed miner, said supply chain disruptions in the mining sector could take up to three years to resolve.
Mike Henry, BHP’s chief executive, also said that the Anglo-Australian mining firm might accelerate its Jansen potash project in Canada by a year as Moscow’s invasion of Ukraine has tightened supplies.
At the Global Metals, Mining & Steel Conference organized by the Bank of America, Henry said both COVID-19 and Ukraine have led to lowered expectations for global and Chinese GDP growth in the near term. He added they also expect that the current supply chain disruptions may take 2-3 years to resolve.
He also said he expected some economic growth in China to spill over into the following year.
In a wide-ranging speech, Henry said the firm’s decision to invest in the Jansen project would bring more excellent cash flow stability and returns resilience.
The fundamentals for potash remained strong and were reinforced by supply-side disruption linked to the war in Ukraine, whose neighbors Belarus and Russia account for almost 40% of global production.
Henry said that this had positively reinforced their decision to enter the potash production sector. He added they were making good progress and were looking at the potential to accelerate Jansen Stage 1 first production into 2026.
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