Anglo American, the owner of a controversial fertiliser mine in North Yorkshire, has entered into a strategic partnership with two Chinese producers to develop a market for the unproven crop nutrient, polyhalite. The mining giant has signed a memorandum of understanding with Sinochem Fertilizer, China’s largest distributor of agricultural products, and BeiFeng AMP, the country’s third-largest player in the sector. This collaboration aims to explore potential sales opportunities in China, refine marketing strategies, and conduct further research on polyhalite applications for various crops.
Tom McCulley, chief executive of Anglo American’s crop nutrients business, emphasised China’s importance as a “key customer” in the company’s ambition to lead the polyhalite market. The Woodsmith mine, located near Sneatonthorpe, is set to feature Britain’s longest tunnel at approximately 23 miles and Europe’s deepest mine. However, the project has faced significant challenges.
In May, Anglo American dramatically scaled back work on the mine as part of a restructuring plan, partly in response to a £39 billion takeover attempt by BHP. Spending has been reduced to £1 billion over the next three years, down from the previously planned near £3 billion, putting about 2,000 jobs at risk. The mine’s first polyhalite production, originally scheduled for 2027, is now expected in 2030. The decision to proceed with the project hinges on the results of a feasibility study due early next year, the company’s ability to repair its balance sheet, and finding a partner to share costs.
Despite these challenges, Anglo American’s CEO Duncan Wanblad remains optimistic, describing the Woodsmith mine as “one of the most exciting projects in the industry today.” However, the company recently revealed a $1.6 billion writedown in the mine’s value, reflecting ongoing concerns about the project’s viability.
The partnership with Chinese producers represents a crucial step in Anglo American’s efforts to create a market for polyhalite and justify the substantial investment in the Woodsmith mine. As the project moves forward, all eyes will be on whether this collaboration can successfully establish polyhalite as a valuable and widely-used fertiliser in the world’s largest agricultural market.
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