Major Investment Boost for Whitby’s Woodsmith Mine Project

The development of the Woodsmith Mine in North Yorkshire has received a significant vote of confidence following the announcement of a new investment agreement between Anglo American and the Mitsubishi Corporation.

The company say that the new partnership is designed to support the continued progress of the site, which is currently being developed to extract polyhalite, a natural mineral fertiliser.

Under the deal Anglo American and Mitsubishi will

"explore opportunities to build out  additional demand for POLY4 in key markets, including providing financial and commercial resources to accelerate pilot sales, leveraging Mitsubishi’s extensive networks and partnerships across the food and agriculture sectors."

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, described the agreement as "fantastic news" for the project. He stated,

"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".

The UK Secretary of State for Business and Trade, Peter Kyle, also welcomed the milestone, noting that the project has already provided an almost £2 billion boost to North Yorkshire’s economy since construction began in 2017. He characterised the deal as a "game changing investment" that would assist the UK in becoming a major global fertiliser producer while delivering £1.5 billion annually to the national economy.

The agreement involves an initial equity investment by Mitsubishi, with the potential for the corporation to acquire a 25% equity interest. Yuuki Yoshioka, General Manager of the Fertilizer Resources Unit at Mitsubishi Corporation, explained that the company aims to use its expertise in mine development and its strengths in the food and agriculture sectors to "generate new value for the Project", saying:

“We are really pleased to build on our existing partnership with Anglo American on  such an exciting project. Demand for sustainable fertilizer 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.”

Despite the optimism, Anglo American has clarified that a final investment decision by its Board is not expected until 2028. Until that time, the company intends to continue with "critical construction activities," supported by an annual investment of approximately $300 million.

For the board to grant final approval, the project must meet several criteria:

• Completion of a feasibility study proving robust economic potential.
• A clear pathway to further investment partnerships.
• Sufficient deleveraging of the Anglo American balance sheet.

As part of a broader structural shift, Anglo American is currently moving to focus its portfolio on copper, iron ore, and crop nutrients, while progressing with the sale or separation of its coal, nickel, and diamond businesses. Through this partnership, Anglo American and Mitsubishi plan to leverage their combined resources to accelerate sales and build international demand for the North Yorkshire-produced mineral.

For the hundreds of families in the local area who depend on the project, the news provides a measure of stability. According to Anglo American, the Woodsmith Project currently employs more than 1,000 people, with 76% of that workforce recruited from the local community.

This move comes as the agricultural industry faces increasing pressure to adopt responsible farming practices and reduce environmental impacts.

The scientific case for the mine's output was recently bolstered by a study published in the Agronomy Journal of the American Society of Agronomy. The report, which drew on a decade of global trials, confirmed that the project's POLY4 product can improve crop yields by 3-5% compared to conventional fertilisers across diverse soils and environments.