Woodsmith Project: problems deepen for firm behind North Yorkshire mine as it cuts diamond production

In an announcement to the London Stock Exchange, Duncan Wanblad, chief executive of Anglo American, said that an underground fire in one of the company’s Australian mines had also affected the business in its most recent quarter.

He said: "At the end of June, the Grosvenor mine experienced an underground fire and the workforce was safely evacuated without injury. As a result of the incident, the operation is suspended.”

The news follows an announcement earlier this year in which Anglo American said it would “slow development” and make substantial investment cuts on its Woodsmith Project fertiliser plant in North Yorkshire.

Construction on the project started back in 2017 and was taken over by Anglo American in 2020 from previous owner Sirius Minerals. The mine had previously been set to open in 2027.

Last week, it was announced that Redpath – one of the key contractors on the Woodsmith Project – was cutting the number of staff it employed from 730 to 370.

Over 2,000 people had previously been working on the Woodsmith Project, but numbers are expected to be cut by about 60 per cent to around 900 over the next 12 months.

An update on the project is expected next week in Anglo American’s half-year results.

Anglo American is currently planning to sell both its De Breers diamond division and its metallurgical coal unit in Australia.

This comes as part of an radical restructuring plan put in place by the company earlier this year, which it launched to fend off a £39bn takeover bid by fellow mining firm BHP.

The company also plans to demerge its platinum division, and offload its nickel mines in Brazil.