Anglo American looking for investors to share development cost of Woodsmith polyhalite mine
Anglo American could be preparing to sell a minority stake in the Woodsmith fertiliser mine as it seeks to share the $9bn development cost, according to reports.
According to the Times, Duncan Wanblad, chief executive of the FTSE 100 miner, told City analysts the company was moving “at pace to find a partner” for the project, considered to be the largest mine opened in the UK in a generation.
Anglo has been ramping up investment in the project since it acquired Woodsmith in 2020 through the buy-out of troubled developer Sirius Minerals for £405m.
The North Yorkshire mine will produce polyhalite, a naturally occurring mineral containing potassium, sulphur, magnesium and calcium, which has huge potential as a fertiliser.
Wanblad said infrastructure investors, sovereign wealth funds and distribution companies could be interested in acquiring a stake considering the attractive economics of the project.
The company is reportedly hoping to line up one or more investors to buy up a 49 per cent stake before the final stages of construction on the project are signed off in early 2025.
Shares in the London-listed company rose nearly 3.6 per cent to 2,000p per share today on the news, though the stock is down nearly 45 per cent this year.
Anglo shares suffered their biggest one-day fall since the financial crisis at the outset of December when the miner slashed its production outlook and speculative rumours of a takeover have been bubbling since.
The company, one of the 20 biggest on the FTSE 100, slashed its copper forecast due to scheduling issues across mines in Peru and Chile.