The decision by Anglo American PLC to cut investment in the Woodsmith fertilizer project in North Yorkshire has sparked significant concern among local politicians and stakeholders.
The FTSE 100 company announced its plans to reduce capital expenditure on the polyhalite mine to $200 million in 2025 and to zero in 2026.
This decision is part of a broader strategy to focus on its core businesses, such as copper and iron ore, while retaining its Crop Nutrients division.
Local Tory MP Roberto Weeden-Sanz expressed strong opposition to the planned cuts, highlighting the potential “catastrophic impact” on the region. The project and its supply chain are crucial for around 2,000 jobs and have contributed £1.5 billion to the local economy.
Weeden-Sanz argued that the project should not be sacrificed as a defensive measure against a takeover proposal from Australia’s BHP.
Ben Houchen, the mayor of Tees Valley, echoed these concerns and urged Anglo American to collaborate with the government to explore all possible options before making any drastic decisions.
The mine, having already absorbed $7 billion in investment, is a significant asset, and the search for partners to support its continuation is ongoing.
According to Reuters, Anglo Crop Nutrients held an internal ‘town hall’ meeting today to discuss the details of the project’s slowdown.
The outcome of these discussions will be closely watched, as the future of the Woodsmith project remains uncertain amid these strategic shifts.
