Anglo American has taken a further £1.2bn ($1.6bn) writedown on its fertiliser mine in North Yorkshire after setting out plans to pause work on the project while it undertakes a sweeping overhaul of the business.
Anglo plans to slash its investment in the Woodsmith fertiliser mine – in the North York Moors national park, near Whitby – next year from £1bn annually to £200m, before seeking strategic investors to restart full-scale work on the polyhalite project from 2026.
The miner’s chief executive, Duncan Wanblad, told journalists that its £6bn flagship project could still begin producing polyhalite by the end of the decade if the company’s balance sheet is strengthened and a joint-venture partner is found. It was initially expected to begin production in 2027.
The writedown on the Woodsmith project, which was widely expected, led the company to a £544m loss for the first half of the year.
Anglo revealed the latest financial blow months after surviving a £38.6bn takeover bid by its larger rival BHP, which has piled pressure on Anglo’s board to shake up the strategy of the 107-year-old company.
Wanblad said the 18-month restructuring, which includes plans to sell the diamond business De Beers, was on track to complete by the end of next year. The historic corporate overhaul includes separating its platinum business and selling its coalmines.
He said: “We are moving at pace to create a much more agile and structurally profitable mining company focused on our exceptional quality copper and premium iron ore businesses, which both continue to perform very strongly, while maintaining our growth optionality in crop nutrients.
“We are committed to completing the key elements of this transformation by the end of 2025, creating a simpler, highly valued mining company with extensive growth options and considerable strategic flexibility.”
Anglo is planning to sell De Beers amid falling prices in the global diamond market due to the sluggish global economy and rising competition from lab-created alternatives. The company cut its diamond production on Thursday for the second time this year in an effort to ease oversupply in the market.
Wanblad said the company faces a “weak cyclical market” with a recovery expected to be delayed until next year. The market will not stop the company’s plans to sell De Beers, he said.
The planned coalmines sale was also cast into doubt at the end of last month by an explosion at its Grosvenor mine in Australia. The company still plans to sell the entire coal business, including the affected mine, by the end of the year.
“Most importantly, everyone there is safe. Our process to divest that business is well under way with continued strong interest from a large number of potential new owners,” Wanblad said.
The company reported two fatalities from an accident at the company’s Amandelbult platinum mine in South Africa in the first half of the year. Anglo expects to demerge its platinum business, Amplats, next year and is planning a secondary listing in London.
