Anglo American's Woodsmith mine in North Yorkshire to receive £650m investment this year

Mining giant Anglo American has revealed that its Woodsmith Project is to receive further capital expenditure as part of a strategy which aims to tackle challenges facing the global agricultural industry

The project is building two mine shafts over a mile deep near Sneaton, south of Whitby and a 37km-long tunnel to a processing area at Wilton on Teesside.

After investment of £400m in 2022, it has been announced that the capital expenditure for this year will be £650m and approximately £800m per year for the following three years. The project currently employs more than 1,650 people at its sites in Whitby, Teesside and Scarborough.

Most of the surface infrastructure at Woodsmith Mine is being built underground and the site has been landscaped to minimise the visual impact on the surrounding countryside. It will mine a giant deposit of the mineral polyhalite, which will be sold as a natural, low carbon environmentally friendly fertiliser.

In a statement, Anglo American said: “A recent study has also shown that the Project contributed £222m to the Yorkshire and North East economies last year and over £1.2bn since it began.”

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, said: “Anglo American’s purpose is to re-imagine mining to improve people’s lives and with the Woodsmith project we are truly delivering on this.

“As well as the direct economic impact of the project, we also support broader long-lasting social benefits as part of our thriving communities programme.

"Real lives are changing, in the last two years we supported more than 150 people in the area to find employment or to set up their own business as well as engaging nearly 9,000 young people in the area through our work with local schools.

He added: “Progress has really ramped up at the project over the last year; the tunnel is over halfway at 22km, the intermediate shaft at Lockwood Beck is complete and the shafts at Woodsmith Mine and Ladycross making great headway.

“This confidence from the Anglo American board shows the belief in the project and our POLY4 polyhalite product that will help to solve challenges in the global agricultural industry and also has a significantly lower carbon footprint than competing fertilisers.

“This is a mining project that has been designed like no other, with great care placed on the design to deliver minimal surface impact.

"Whilst our product will make a positive difference to the global fertiliser markets, we also look forward to continuing our work in the local community where we have made a real difference to local people and businesses.”

Anglo American is also committed to being carbon neutral across its operations by 2040.

In a statement, the company said: “We work together with our business partners and diverse stakeholders to unlock enduring 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.”