Anglo American PLC (LSE) is under pressure from one of its major investors to shut down the Woodsmith fertiliser mine in North Yorkshire, amid growing concerns over the project’s financial viability. Dawid Heyl, a portfolio manager at Ninety One, which owns a 1.5% stake in Anglo valued at approximately £500 million, expressed doubts about the profitability of the venture. “They should just leave it and shutter the whole plan. I don’t think there is a market for polyhalite of that size,” Heyl told the Sunday Times. He further noted that despite the project’s potential impact on local employment, with around 2,000 jobs at stake, the mine is likely to face issues related to demand and pricing that would prevent profitability. This sentiment has been amplified by recent developments, including Anglo’s US$1.6 billion write-down due to site development challenges. A final decision regarding the mine’s future is expected as part of a broader restructuring effort following a failed takeover bid from BHP. The pressure comes after Anglo reported an 8% revenue decline for the first half of 2024, with earnings falling from US$15.7 billion to US$14.5 billion. Despite these setbacks, the company remains optimistic about the Woodsmith project’s potential, citing confidence in its proven project delivery capabilities once financial conditions improve.
