BHP Group Ltd. flagged rising costs and delays at its major potash project in Canada in its quarterly report Friday, which saw iron ore and copper production edge up.

The world’s biggest miner is betting heavily on potash, which is used to make fertilizer. Estimated costs at the Jansen project’s first phase, which is 68 per cent complete, have blown out from US$5.7 billion to between US$7 billion and US$7.4 billion, while potential oversupply in the market may delay the second stage of the project by two years, BHP said.

“Given potential for additional potash supply coming to market in the medium term, and as part of our regular review of the sequencing of capital projects under the capital allocation framework, we are considering a two-year extension for the execution of Jansen Stage 2,” it said.

BHP has worked for over a decade to enter the potash market, citing similarities in scale and costs to its iron ore business that has delivered the majority of its revenue for decades. It’s made significant investments to fast-track production due to supply concerns from

Russia’s war on Ukraine. Meanwhile, production of the key steelmaking ingredient iron ore reached 70.3 million tons in the three months to June 30, BHP said in filings Friday. That took output in its fiscal year to 263 million tonnes, near the top of its guidance range.

China’s demand for iron ore is plateauing as the country’s appetite for steel softens amid an ongoing property crisis, which has led to accusations of steel dumping by the world’s biggest consumer. Despite of the challenges, prices for iron ore have averaged around US$100 a tonne this year.

Copper output also rose two per cent in BHP’s fourth quarter, as the massive Escondida project — the largest copper mine in the world — in Chile achieved its highest production in 17 years for its full year.

“Commodity demand globally has remained resilient so far in 2025,”  Chief executive Mike Henry said in the statement. “That resilience largely reflects China’s ongoing ability to grow its overall export base despite a significant decline in exports to the U.S., and its ability to deliver robust domestic demand despite the dislocation in the property sector.”

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Unlike some peers, BHP made no mention of tariffs in its report. Earlier this week,

Rio Tinto Group posted a hit of more than US$300 million to its aluminum business from U.S. tariffs on Canadian imports, while Alcoa Corp. said levies cost it US$115 million.

The mining giant will hand down its full-year results on Aug. 19.