Sandvik wins SEK 1.9 billion order from BHP for the Jansen Potash Project

Rhea-AI Summary

Sandvik has secured a major contract worth SEK 1.9 billion from BHP for the Jansen Potash Project in Saskatchewan, Canada. This order, for Stage 2 of the project, includes potash continuous mining systems. The order value will be reported in installments: SEK 500 million in Q3 2024, SEK 400 million each in Q2 and Q3 2025, and the remainder in Q2 2026. Deliveries are expected from 2028 to 2029.

This contract follows a SEK 2 billion order for Stage 1 announced in 2022. The Jansen Potash Project has the potential to become the world's largest potash-producing mine, supporting global food production through fertilizer production.

Positive

• Secured a major contract worth SEK 1.9 billion from BHP
• Follow-up order to a previous SEK 2 billion contract from 2022
• Strengthens long-term partnership with BHP
• Involvement in potentially the world's largest potash-producing mine project

Negative

• None.

STOCKHOLM, Sept. 3, 2024 /PRNewswire/ -- Sandvik has been awarded a major contract from BHP to the Jansen Potash Project, located in Saskatchewan, Canada.
The contract, which includes potash continuous mining systems, is valued at approximately SEK 1.9 billion.

An order value of approximately SEK 500 million will be reported in the third quarter 2024, and approximately SEK 400 million in each of the second and third quarter 2025.
The remaining order value is estimated to be booked in the second quarter 2026. The delivery period is expected to commence in 2028 and conclude in 2029.

The new contract is for Stage 2 of the development of the Jansen Potash Project and follows a SEK 2 billion contract announced in 2022 for Stage 1, which is currently being executed. Sandvik has been collaborating with BHP for several years to develop the underground mining equipment.

"We are very pleased to continue our partnership with BHP and look forward to further strengthen our collaboration with the supply of our high-performing mining solutions for Stage 2 of the Jansen project," says Mats Eriksson, President of Sandvik Mining and Rock Solutions.

The Jansen Potash Project has the potential to be the largest potash-producing mine in the world, providing a rich source of potassium, a key ingredient for fertilizer, and supporting global food production.

Stockholm, September 3, 2024
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 wins SEK 1.9 billion order from BHP for the Jansen Potash Project

 

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SOURCE Sandvik

FAQ

What is the value of Sandvik's new contract for the Jansen Potash Project?

Sandvik has been awarded a contract worth approximately SEK 1.9 billion from BHP for the Jansen Potash Project.

When will Sandvik (SDVKY) report the order value for the Jansen Potash Project contract?

Sandvik will report SEK 500 million in Q3 2024, SEK 400 million each in Q2 and Q3 2025, and the remainder in Q2 2026.

What is the expected delivery period for Sandvik's equipment for the Jansen Potash Project?

The delivery period for Sandvik's equipment is expected to commence in 2028 and conclude in 2029.

How does this new contract relate to Sandvik's previous work on the Jansen Potash Project?

This new contract is for Stage 2 of the project and follows a SEK 2 billion contract announced in 2022 for Stage 1, which is currently being executed.