Anglo American, owner of the new polyhalite mine on the North Yorkshire coast, is providing a progress update on the scheme today as part of the company’s interim results announcement.

Development of the Woodsmith Project has continued in line with expectations and the impact of Covid-19 on the project’s development has been limited due to the successful implementation of all appropriate health measures.  Despite the challenges of constructing during lockdown, strict temperature monitoring, social distancing and hygiene measures have meant that work has been able to be carried out safely.  In fact, the workforce has increased from around 600 in May to nearly 1000 by the end of July, with more expected to be added in the coming months.

“After a brief pause at the beginning of the outbreak, we’ve been able to continue construction under new enhanced operating procedures based on and in some areas exceeding government guidelines,” said Gareth Edmunds, External Affairs Director for Anglo American’s Crop Nutrients business Woodsmith Project.  “We remain vigilant of the risk and will continue to do all we can do keep everyone safe.  It is important for the area that this project gets built and that we continue to deliver the jobs and opportunities for local businesses that are needed now more than ever.”

During the lockdown, the company gave £20,000 to food banks in Redcar & Cleveland and to a meal delivery service for vulnerable people in Whitby, and also donated laptops to a local school to aid student remote learning.  The project’s charitable arm, the Sirius Minerals Foundation, granted £20,000 to local charities, and intends to launch a post-Covid recovery fund in the coming weeks.

“We’ve been fortunate to have not been too badly affected by the coronavirus crisis - we’re continuing to build and will actually be adding to our workforce later in the year as our shaft sinking operations ramp up,” said Gareth Edmunds. “But we are acutely aware that many people in the community have been badly impacted and will continue to be.  We want to make sure that the opportunities and benefits this project brings to the area are spread as widely as possible.”

Anglo American is building two one-mile deep mineshafts near Whitby to access a vast 2.3 billion tonne deposit of the mineral polyhalite, which will be sold around the world as a natural fertiliser.  The underground mine will be connected to a 23 mile long tunnel, which will transport the ore to Teesside for processing and shipping, avoiding any impact on the countryside above. 

The tunnelling operation has reached 4.5 miles so far and continues to progress well.  At the mine site, a giant mineshaft construction machine is currently being assembled and is expected to start excavating later this year.  It will be only the third time that the state of the art ‘Shaft Boring Roadheader’ has been used anywhere in the world, to dig what will be the deepest mineshafts in Europe. 

Anglo American expects to invest approximately US$300m (GB£235m) in each of 2020 and 2021 on the ongoing development of the project, including building the mineshafts and the first section of the tunnel from Teesside.  After that, the next stage would be to complete the mine, tunnel, processing and shipping facilities in order to bring the mine into production. 

ENDS

Notes to editors:

The full company interim results are available here: https://www.angloamerican.com/investors/financial-results-centre

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, development projects and undeveloped resources, provides many of the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to mine, process, move and market our products to our customers – and to discover new resources – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in development and thermal coal operations planned for divestment – we are committed to being carbon neutral across our operations by 2040. We work together with our business partners and diverse stakeholders to unlock sustainable value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people’s lives.

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