Sandvik secures a SEK 2 bn major order in mining

Rhea-AI Summary

Sandvik Mining and Rock Solutions has secured a contract valued at approximately SEK 2 billion from BHP for the Jansen Potash project in Saskatchewan, Canada. This significant collaboration, developed over several years, involves supplying advanced underground mining equipment and automation solutions. Deliveries are set to commence in Q3 2023 and extend until 2026, with expected quarterly orders of SEK 500 million. The Jansen project aims to become the world's largest potash mine, projected to operate for up to 100 years, beginning production in 2027.

Positive

• SECURED a SEK 2 billion contract from BHP.
• Projected to become the largest potash mine in the world.
• Strong collaboration with BHP enhances company credibility.
• Long-term project expected to generate revenue until 2127.

Negative

• Contract execution is dependent on timely equipment delivery.
• Potential delays in the start of production could impact revenue projections.

SANDVIKEN, Sweden, Feb. 16, 2022 /PRNewswire/ -- Sandvik Mining and Rock Solutions has been awarded a contract from BHP to the Jansen Potash project, located in the province of Saskatchewan, Canada. The contract follows several years of close collaboration with the customer BHP to develop the underground mining equipment and automation solution.

The total contract value is approximately SEK 2 billion and the delivery period of the equipment is expected to commence in the third quarter 2023 and extends to 2026. An order value of approximately SEK 500 million will be reported in each of the first, second and fourth quarter in 2022, as well as in the second quarter of 2023.

The Jansen project has the potential to be the largest potash-producing mine in the world and is expected to operate for up to 100 years, providing a rich source of potassium for soil fertilization purposes and hence supporting food production. Start of the production is targeted for calendar year 2027.

Stockholm, February 16, 2022

Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

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Sandvik secures a SEK bn major order in mining

 

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SOURCE Sandvik

FAQ

What is the value of the contract awarded to Sandvik by BHP?

The contract is valued at approximately SEK 2 billion.

When will Sandvik start delivering equipment for the Jansen Potash project?

Deliveries are expected to commence in Q3 2023.

How long is the Jansen Potash project expected to operate?

It is projected to operate for up to 100 years.

What is the significance of the Jansen Potash project for Sandvik?

The project has the potential to become the largest potash-producing mine in the world, enhancing Sandvik's market position.

When is production expected to start at the Jansen Potash project?

Production is targeted to begin in the calendar year 2027.