Progress on the scheme has slowed since a decision by owner Anglo American to cut investment in 2024
An aerial view of Woodsmith Mine(Image: Anglo American)
Hopes have been raised that a mining project that could bring hundreds of jobs to North Yorkshire and Teesside could be resumed after one of the world’s largest companies invested in the scheme.
Development work at the Woodsmith Mine near Whitby has been slowed since a decision by mining giant Anglo American in 2024 to significantly cut investment. That led to hundreds of job losses at the project, which includes a 37km tunnel that will eventually connect the mine site with a processing and export facility at Redcar, on Teesside.
But now it has been announced that the Mitsubishi corporation has made an investment that could see it take a 25% stake in the project. The size of the investment has not been disclosed but the involvement of the multinational firm will raise hopes that the project can be resumed in full.
A feasibility study is being carried out on the project, which aims to mine polyhalite, a high-performing natural fertiliser. It is expected that a final decision on whether or not to fully complete the project will be made in 2028.
A statement to the Stock Exchange from Anglo American this morning said: “In support of the first two of these conditions, Anglo American has entered into an investment agreement and related shareholders’ agreement with Mitsubishi Corporation (Mitsubishi) to support continued development of Woodsmith, including working together on market development and financing opportunities designed to further enhance the existing market development programme.
“Together, Anglo American and Mitsubishi will explore opportunities to build out demand for POLY4, including providing financial and commercial resources to accelerate pilot sales and leveraging Mitsubishi’s extensive networks across food and agriculture sectors to broaden market development across key markets and related business development and strategic partner engagement, which will contribute to optimising the project in the feasibility study phase, prior to submission to the Board for approval.
“The agreements include an initial equity investment by Mitsubishi in Woodsmith. Through its investment and involvement in the ongoing development of Woodsmith at this stage, Mitsubishi also intends to evaluate its participation in a future financing plan at the time of the Anglo American board’s final investment decision, currently anticipated from 2028 subject to meeting the above conditions, with potential for Mitsubishi to acquire an equity interest of 25% or other such amount subject to negotiations at that time.
“The agreements extend the longstanding successful partnership between Anglo American and Mitsubishi Corporation, while allowing for additional investment and the involvement of other partners, and represents a pathway for Anglo American to syndicate a significant minority share of its interest in Woodsmith.”
Anglo American added that board approval for the full project is still needed and is subject to the feasibility study being completed. It said was continuing work on the project, including continued sinking of the mine’s service shaft.
A statement from Mitsubishi said: “Mitsubishi Corporation (MC) will use its experience and resources to contribute to the feasibility study and will jointly conduct pilot sales to validate the marketability of the product and explore opportunities to build out demand for the product. This will support MC assessing whether to participate in and increase its equity exposure at the final investment decision by Anglo American (AA), currently anticipated from 2028.
“The feasibility study will assess development and operational plans, economic viability, and social and environmental impacts of the Project. In addition to contributing funds for the study, MC will leverage its extensive networks across the food and agriculture sectors, including providing opportunities for agronomic trials through its group companies.
“Demand for fertiliser minerals is expected to grow steadily over the medium to long term, supported by megatrends of population growth, evolving dietary preferences, and the rising importance of food security amid heightened geopolitical uncertainty. In particular, demand for sustainable fertiliser products is poised to increase as agriculture faces rising expectations to reduce environmental impact and adopt responsible farming practices.
“Leveraging the expertise it has built in mine development and operations through its Mineral Resources Group, MC will bring together its integrated strengths across business segments-including the food and agriculture related businesses-to generate new value through the project.”
