Anglo American has entered into an investment agreement with Japan’s Mitsubishi Corporation to support the development of its polyhalite fertiliser mine at Woodsmith in the North Yorkshire Moors.
The UK-listed mining company acquired the Woodsmith project in 2020 from Sirius Minerals after that company, largely backed by local investors, ran out of capital. But in 2024, during a hostile takeover bid from the BHP Group, Anglo American cut capital investment for two years to review the whole project, so delaying the originally envisaged 2027 production start date. Once started, the polyhalite reserves are estimated to last for 60 years, with the potential to add £1.5 billion per year to the UK economy.
The new agreement includes an initial equity investment by Mitsubishi to support continued investment in the Woodsmith mine until a final investment decision is made by the Anglo American board from 2028. At this stage, Mitsubishi could acquire an equity stake of 25% – or another amount subject to negotiation at the time – which the partners say would demonstrate a clear pathway to project syndication. Mitsubishi can also provide the financial and commercial resources to accelerate pilot sales of POLY4 polyhalite fertiliser in key world markets, using its extensive networks and partnerships across the food and agriculture sectors to generate demand.
The Anglo American board approval depends on the conclusion of a current feasibility study (which Mitsubishi will now contribute to) that points to robust economic potential for Woodsmith; a clear pathway to syndication with one or more investment partners; and sufficient deleveraging of the Anglo American balance sheet. Until that point, the company says it will continue to invest around $300 million per year to progress critical construction activities at Woodsmith less than it was spending before 2024.
Anglo American and Mitsubishi have a history of successful partnership working, most recently at the Quellaveco copper mine in Peru in which Mitsubishi holds a 40% stake.
“This is fantastic news for the Woodsmith project,” says Tom McCulley, chief executive of Anglo American’s Crop Nutrients business. “We are delighted that Mitsubishi has shown such confidence in the enormous potential of Woodsmith and the global market for our highly effective POLY4 fertiliser product.”
For Mitsubishi, Yuuki Yoshioka, general manager of the fertiliser resources unit, adds: “Demand for sustainable fertiliser products is poised to increase as agriculture faces rising expectations to reduce environmental impact and adopt responsible farming practices. We will use our expertise in mine development and Mitsubishi’s strengths across business segments – including the food and agriculture related businesses – to generate new value for the project.”