Anglo American Delays Major UK Fertiliser Mine Project Until 2027

Anglo American has confirmed that substantial work on Britain’s largest new mine in decades will not recommence until 2027 at the earliest. The mining giant’s Woodsmith fertiliser project, situated near Whitby in North Yorkshire, has largely been placed on hold whilst the company undergoes restructuring efforts.

The organisation has recorded a significant £1.6 billion writedown on the Woodsmith venture during its half-year results, citing project deceleration as the primary cause. This follows a previous £1.7 billion writedown from the year before, highlighting the mounting financial pressures facing the development.

The workforce reduction has been substantial, with approximately 1,000 employees being made redundant, though 1,100 staff remain employed at the site. Capital expenditure is projected at £300 million for the current year before dropping to zero in the following period, whilst operating costs will continue.

Chief Executive Duncan Wanblad has assured that the remaining positions are secure for the foreseeable future. The project’s revival depends on several key factors, including balance sheet restoration through strategic divestments, completion of feasibility studies, and securing additional funding partners.

The ambitious undertaking involves extracting polyhalite, a specialised fertiliser variant, from depths of approximately one mile beneath the North York Moors national park. The mineral will be transported via a 23-mile tunnel for processing in Teesside. Currently, one shaft has reached half a mile in depth with ongoing excavation, while work on a second shaft has been temporarily suspended.

Despite investor scepticism regarding the polyhalite market, Anglo American maintains that its developing crop nutrients division remains crucial to its future portfolio, alongside established copper and iron ore operations. The project’s timeline has shifted significantly, with initial production now anticipated in the 2030s, rather than the original 2027 target.