Anglo American plans to create jobs in Yorkshire by pumping hundreds of millions of dollars into mining scheme

Mark Cutifani is chief executive of the global mining company which tabled a successful offer for Scarborough-based Sirius Minerals which is aiming to mine polyhalite, for use in the production of fertiliser, from its site at Sneaton, near Whitby.

The £404.9million takeover offer, which was recommended by the Sirius board, led to shareholders receiving 5.5p per share.

At their height Sirius shares were valued at 45p. Some 85,000 private investors owned Sirius shares; it is thought around 12,000 lived within a few miles of the company's Woodsmith mine near Whitby.

Today, Sirius Minerals has officially become part of Anglo American.

Yesterday Mr Cutifani visited the site near Whitby and chatted to Sirius' employees.

Mr Cutifani told The Yorkshire Post: "We have been to each of the sites and have been talking to staff and letting them know about our intention to support the project.

"We are supporting the project with 300m dollars over each of the next two years and we will deposit £1m into the community fund over each of the next three years.

"We are sitting down with the team and talking to them about what cash they need going forward."

He said the scheme came "close to the wire" in terms of running out of money.

He said at the moment there was no impact on the scheme from the coronavirus pandemic, although this could change if new policies were implemented.

Mr Cutifani said: "Today we will sit with the team and work out how we work together over the next three months. The mine will retain the name of the Woodsmith project."

Mr Cutifani said that 600 people were currently employed on the scheme, but it expects to employ up to 1,500 people during the construction phase.

When operational, the company expects to employ around 700 staff initially, with the potential to increase this number to 1,000 if the project expands to 20 million tonnes per annum of production, and a further 1,500 in the supply chain. The initial capacity is 10 million tonnes per annum.

"The spin off benefits are very important", said Mr Cutifani.

He said the mine would start to produce the polyhalite product in 2024 and production is set to begin at a full rate in 2026.

"The more people we can employ locally the better."

He said: "I feel for the shareholders who bought in at a high price. It is hard to get funding for such a large project. The shareholders felt the weight of a tough market. We hope people can see the bigger picture."

Unlike most fertilisers, polyhalite is cleared for use in the growing of organic food. Anglo currently operates in vast markets such as Brazil and China, with Mr Cutifani saying that it plays into the direction that agriculture needs to go in the future to meet climate change targets.

On January 20, the boards of Sirius Minerals Plc and Anglo American Projects UK Limited announced that they had reached agreement on the terms of the acquisition.

Anglo American, through its wholly owned subsidiary Anglo American Projects UK Limited, has now completed the Acquisition of Sirius and its Woodsmith Project in the UK.

In a statement, Mr Cutifani said: “Today marks a new chapter for the Woodsmith Project, the employees of the business and everyone who has an interest in its future.

"This is a project with clear potential as a Tier 1 supplier of premium quality, low carbon fertiliser to help meet food demand for a fast growing global population.

“Anglo American brings greater certainty to the business and the development of the Woodsmith Project, building upon our long experience in the global fertiliser market covering most of the last 50 years.

"The project itself offers the prospect of sustained employment and economic stimulus for North Yorkshire and Teesside for many decades to come and, when the mine is ramped up, a boost in exports to benefit the wider British economy.

“The team has done a remarkable job, designing the mining operation to have minimal physical impact on its natural surroundings as well as progressing both its development and the market for POLY4 to where they are today. We share a vision of working towards a smarter future for mining – a safer future with a smaller environmental footprint to ensure that we can supply the essential metals and minerals the world needs, and do so sustainably. The Woodsmith Project exemplifies this approach.

“We recognise the role the project will continue to play in its local communities and, as promised, I am pleased to confirm that we are today transferring £1 million into the project’s charitable foundation.

"The foundation supports so many good local causes, including education and skills training, community sports clubs and broader local regeneration. We intend to contribute further amounts of £1 million on this date for each of the next three years, prior to the foundation receiving a substantial royalty income when the mine begins production.”