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Anglo American PLC on Friday said it signed a memorandum of understanding aimed at promoting sales of North Yorkshire-mined polyhalite to buyers in China. The London-based diversified miner said it signed a MoU with Sinochem Fertilizer, the largest distributor of agricultural products in China, as well as with BeiFeng AMP, China’s third largest distributor in the sector. The partnership aims at addressing potential sales opportunities in China and to conduct more research on how polyhalite could be applied to crops such as corn, soybean, potato, rice, apple, citrus and grapes. The Woodsmith mine near Sneatonthorpe in North Yorkshire is expected to include the longest tunnel that is solely in the UK at about 23 miles, and the deepest mine in Europe. Polyhalite is a rarely used fertiliser with an unproven market. ‘China is a key customer for us in our ambition to be a leader in sustainable crop nutrition. Given our Crop Nutrients business forms part of Anglo American‘s exceptional growth trajectory over the next decade, we are continuing to foster strategic partnerships across the agricultural industry to prepare the market for the full range of commercial and environmental benefits that polyhalite can offer farmers and the entire food value chain,’ said Tom McCulley, chief executive officer of Anglo American’s Crop Nutrients business. Work on the mine had been scaled back sharply under a restructuring plan set out in May. Anglo American had decided to temporarily slowdown the Woodsmith crop nutrients project which resulted in a $1.6 billion impairment of the project. Back in 2022, Anglo American already had taken an impairment charge related to the Woodsmith project of $1.7 billion. In May, Anglo American said it intended to ‘demerge’ Anglo American Platinum Ltd and ‘divest’ or ‘demerge’ De Beers as part of its new strategy. It also wanted to divest its steelmaking coal business. Anglo American aims to concentrate on copper and iron ore as part of its new strategy, which was unveiled after rival BHP Group Ltd had launched a bid to take over Anglo American, which the latter rejected. BHP later abandoned its bid in late May. Anglo American shares closed 1.3% lower at 2,209.00 pence each on Friday in London. In Johannesburg, shares closed 6.0% lower at R 615.58 each. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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