Woodsmith Project set to benefit from investment agreement with Mitsubishi

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, said: “This is fantastic news for the Woodsmith project. We are delighted that Mitsubishi has shown such confidence in the enormous potential of Woodsmith and the global market for our highly effective POLY4 fertilizer product.”

Together, Anglo American and Mitsubishi will explore opportunities to build out additional demand for POLY4 in key markets, including providing financial and commercial resources to accelerate pilot sales, leveraging Mitsubishi’s extensive networks and partnerships across the food and agriculture sectors.

Peter Kyle, UK Secretary of State for Business and Trade, stated: “This partnership between Anglo American and Mitsubishi is a major milestone for this significant project, building on the almost £2 billion boost to North Yorkshire’s economy and over 1000 jobs created since construction began in 2017.

“It’s a game changing investment that will help the UK to become a major global fertilizer producer, boosting sustainable and secure food production, whilst delivering £1.5 billion/y to the UK economy.”

The agreement extends the longstanding successful partnership between Anglo American and Mitsubishi Corp., most recently at the Quellaveco copper mine in Peru in which Mitsubishi is a 40% shareholder and supports continued investment in Woodsmith until a final investment decision (FID) is made by the Anglo American Board from 2028.

Yuuki Yoshioka, General Manager of Fertilizer Resources Unit in Mitsubishi Corporation, commented: “We are really pleased to build on our existing partnership with Anglo American on such an exciting project. Demand for sustainable fertilizer products is poised to increase as agriculture faces rising expectations to reduce environmental impact and adopt responsible farming practices. We will use our expertise in mine development and Mitsubishi’s strengths across business segments – including the food and agriculture related businesses – to generate new value for the Project.”

Anglo American Board approval is reliant on completion of a feasibility study showing robust economic potential for Woodsmith; a clear pathway to syndication with one or more investment partners; and sufficient deleveraging of Anglo American balance sheet. Until then, Anglo American will continue progressing critical construction activities at Woodsmith, with an annual investment of approximately US$300 million.

The agreement includes an initial equity investment by Mitsubishi in Woodsmith, with an intention to evaluate its participation in a future financing plan at the time of the Anglo American Board’s FID. This gives Mitsubishi the potential to acquire an equity interest of 25% or other such amount subject to negotiations at the time – demonstrating a clear pathway to project syndication.

The investment from Mitsubishi comes after a recent report using a decade’s worth of global trials confirmed that Anglo American’s polyhalite product, POLY4, significantly improves crop yields by 3 - 5% compared to conventional fertilizer practice across a wide range of crops, soils, and environments.

The study, published in the Agronomy Journal of the American Society of Agronomy, found to the highest possible scientific standard that polyhalite’s ability to improve yield across a range of diverse soils, crops and geographies demonstrated its value as an effective and sustainable future farming solution.

In 2025, sales of POLY4 were expanded into key selling regions of Europe, North America, China, and India, working with existing distribution partners and future customers to develop global demand for polyhalite, through realised product sales.

The Woodsmith Project currently employs more than 1000 people, of which 76% are from the local area.

Read the article online at: https://www.worldfertilizer.com/project-news/23022026/woodsmith-project-set-to-benefit-from-investment-agreement-with-mitsubishi/