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BHP has delayed first production at the Jansen project to mid-2027. Credit: Adwo / Shutterstock

BHP Group has announced a delay and a potential cost overrun of up to $1.7bn at its Jansen potash project in Canada.

The news comes as the miner reported “record” copper and iron ore production for fiscal year (FY) 2025.

The Jansen project is crucial to BHP’s strategy to diversify its portfolio, with more than a decade invested in its development.

The mining company now expects the first stage of the Jansen project to cost between $7bn and $7.4bn, a substantial increase from the initial $5.7bn estimate.

BHP attributes the rise to escalated costs, design and scope modifications and lower than expected productivity.

Additionally, the miner has delayed first production to mid-2027, a setback compared with the earlier target of 2026.

It is also contemplating a two-year postponement for the second stage of the Jansen project, moving the target to FY31.

This decision aligns with the expectation of additional potash supply entering the market in the medium term.

China has delayed and then discreetly issued its first rare earth mining and smelting quotas for 2025, a move that signals tighter control over the critical sector, reported Reuters.

The delay in this year’s quotas is partly attributed to a proposal introduced in February to include imported ore in the quota system. This proposal was met with resistance from import-dependent companies concerned about potential restrictions on their feedstock supply.

Rare earth elements (REEs), essential in various high-tech applications, are a key focus of global supply chain monitoring. China, as the world’s largest producer of rare earth minerals, has traditionally issued these quotas to state-owned companies.

Access to the quotas was restricted to only China Rare Earth Group and China Northern Rare Earth Group High-Tech, which were eligible last year, a decrease from six in previous years.

The expected announcement in the first quarter was absent, and companies were reportedly instructed not to disclose the figures for security reasons.

Mining giant Rio Tinto faced gross costs of approximately $300m due to US tariffs on its primary aluminium exports from Canada during the first half of 2025.

Rio Tinto’s shipments to the US in H1, amounting to approximately 723,000 tonnes (t), represent nearly three-quarters of its Canadian output.

The tariffs, introduced by President Trump to boost domestic production, were initially set at 25% in March and were increased to 50% in June. 

Alcoa, the largest US aluminium producer, has also felt the sting, with Q2 costs reaching $115m. The company has redirected Canadian aluminium to international customers to avoid tariff-related expenses. However, the company is predicting a negative impact of around $90m in Q3 as a result of US tariffs.

Alcoa has also halted growth projects in Canada, but remains in discussions with administrations, governments and policymakers, primarily in the US and Canada, related to the impacts of latest tariffs.

US-based rare earth producer MP Materials has entered into a definitive, long-term agreement with tech giant Apple to supply US-manufactured, sustainable rare earth magnets.

These magnets will be produced using 100% recycled materials in a significant step in both companies’ commitment to sustainable and domestic supply chains.

The magnets will be sourced from MP Materials’ Fort Worth, Texas facility, known as Independence, using recycled rare earth feedstock processed at its Mountain Pass site in California.

As a result of this collaboration, MP Materials will establish a commercial-scale, dedicated recycling line at the Mountain Pass facility to process a variety of materials, including magnet scrap and components from end-of-life products.

To meet the terms of the agreement with Apple and its partnership with the US Department of Defense, MP Materials will increase the capacity of its facility to establish neodymium magnet production lines tailored for Apple products.

The Minerals Council South Africa, representing the country’s major miners, has expressed concerns that the proposed chrome ore export tax will not support the government’s goals of preserving the ferrochrome industry and jobs.

South Africa, the world’s largest exporter of chrome, has seen its ferrochrome production decline, primarily due to high electricity costs shutting smelters down.

To address this, the South African cabinet announced in June 2025 that it had agreed to lower power tariffs for chrome smelters and proposed a tax on chrome ore exports .

However, the Minerals Council believes that this move would “have a negative impact on chrome producers and the significant contribution this industry makes to both South Africa’s economy and the jobs it sustains and grows.”

The chrome sector in South Africa directly employed 25,000 people and generated R85bn ($4.85bn) in export revenue in 2024.