Global mining company Anglo American expects to spend roughly £446m on the Woodsmith Project this year as shareholders are set to receive a bumper dividend totalling £1.5bn.
In a presentation of results to investors, the FTSE 100 company said it had invested £394m ($530m) last year in the polyhalite fertiliser mining scheme that includes its mine near Whitby, North Yorkshire, an underground conveyor belt and shipping facilities on Teesside.
Only in December the company said it anticipated spending roughly £530m ($700m) on the project.
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Outgoing chief executive Mark Cutifani said a technical review - started in mid 2020 and following the purchase of the former Sirius Minerals project - was now near completion.
It indicates the Woodsmith Project, which currently employs about 1,000 people, would benefit from modifications "to bring it up to Anglo American’s safety and operating integrity standards and to optimise the value of the asset for the long term."
He said the changes would result in a longer construction timetable. An updated budget and schedule are expected to be submitted to Anglo's board following completion of engineering designs.
Anglo has already excavated 18km of the tunnel which will stretch from the mine site to the Redcar Bulk Terminal. And the mine's intermediate access shaft at Lockwood Beck is now complete at 383m deep.
Mr Cutifani said: "The Woodsmith team is further developing the engineering to optimise the configuration of the project, recognising the multi-decade life of the mine.
"Particular attention is on those aspects identified at the outset of Anglo American’s ownership – namely, the sinking of the two main shafts, the development of the underground mining area, and the changes required to accommodate both increased production capacity and the more efficient and scalable mining method of using only continuous miners; such improvements will also require the installation of additional ventilation earlier in the development of the underground mining area.
"Ahead of the full project execution phase, the Woodsmith team, led by new CEO Tom McCulley, is working through the detailed design engineering throughout 2022 and is expected to make a number of changes to the phasing of work, particularly in relation to the two main shafts."
Anglo reported underlying earnings before interest, tax, depreciation and amortisation of £15.3bn ($20.6bn) on revenue of £30.8bn ($41.5bn).
The company also reduced net debt from £4.09bn ($5.5bn) to £2.8bn ($3.8bn).
