Anglo-American eyeing sale of its 49% stake in Yorkshire fertilizer mine
Anglo American is looking at selling a 49 percent stake in a huge fertilizer mine being built beneath the North York Moors National Park.
The FTSE 100 company bought the Woodsmith project from its former owner Sirius Minerals in 2020 for £405 million.
It has already spent £2 billion developing the £7 billion plan.
But chief executive Duncan Wanblad told City analysts the company was “moving towards finding a partner” for the mine, the Times reported.
It is believed the company has started identifying potential investors internally before launching a formal sale. Shares in the group rose 5.5 percent, or 510p, to 9,800p after the report.
Inset: Anglo American bought the Woodsmith project from Sirius Minerals in 2020 for £405 million. The country has already spent £2 billion developing the £7 billion scheme
The move to sell a stake in Woodsmith comes as Anglo makes efforts to cut costs across the business after a fall in commodity prices and production problems hit profits.
Selling part of the Woodsmith mine would save money and spread development costs, which have soared since Anglo took on the project and made its own estimates.
The former Sirius team struggled to raise enough money to fund Woodsmith, which involves building two mile deep shafts and building a tunnel that would be longer than the Channel Tunnel to transport fertilizer from the main site at Whitby to Teesside to be brought for processing.
Anglo is believed to be considering approaching sovereign wealth funds and investors in major infrastructure projects.
It has previously said it would consider taking on a partner.
The company will make a final investment decision on Woodsmith in early 2025 and is keen to line up shareholders who could take a stake around the same time, the Times said.
Anglo is one of the largest mining companies in the world, producing metals ranging from gold and copper to platinum and iron ore.
The switch to fertilizer is part of longer-term plans to invest in green materials.
The company also owns the world's largest diamond company, De Beers.
The Mail on Sunday revealed this week that Anglo is planning to cut jobs at De Beers. Anglo declined to comment.