Anglo American could go with its hand raised to the new National Wealth Fund

The future of Anglo American’s massive fertiliser mine in the North York Moors National Park has been thrown into doubt again.

The FTSE 100 company has warned it may have to write down the value of the troubled £6bn Woodsmith project in its first-half results this week.

Anglo bought Woodsmith in 2020 for £405m after its previous owner, Sirius Minerals, nearly collapsed following a failed fundraising.

The project has been praised by Anglo chief executive Duncan Wanblad and was championed by his predecessor Mark Cutifani.

But in May, Anglo said it would cut funding to Woodsmith as part of a radical strategy to convince shareholders it was right to reject two takeover bids from rival miner BHP.

This is likely to affect hundreds of jobs at the site, which was supposed to be a reliable local employer in an economically disadvantaged region.

Anglo warned last week that radical investment cuts and construction delays could hit Woodsmith’s value, even after it took a £1.7bn hit from a write-down last year. Another cut could make it even harder for Anglo to convince already sceptical shareholders that the project should be kept afloat and, crucially, attract new investors.

The Mail on Sunday understands that several groups are considering taking a stake in Woodsmith and a source close to the company said a large Asian conglomerate had visited the site several times as it considered an investment.

Market sources believe Anglo could even go to the government and ask for cash from Labour’s new £7.3bn National Wealth Fund.

The fund provides investments for “industries of the future”, which could include Woodsmith, as Anglo sees fertiliser as a crucial green product that will help the world’s growing population produce food more efficiently.

John Meyer, a mining analyst at brokerage SP Angel, said: “BHP’s decision to acquire Anglo American has prompted Anglo’s board to rethink its spending and prioritise funding in pursuit of short-term returns.” Anglo will produce a little-known type of fertiliser called polyhalite at the Woodsmith mine, which does not yet have a sizeable market and has made some shareholders nervous about whether it will be as successful as the company believes.

First extraction of fertilizers was planned for 2027, but will almost certainly be delayed, possibly by a couple of years.

Anglo essentially wants to wait until making a final investment decision on the project next year before investing more money.

Despite insisting Anglo is “committed” to the project, Wanblad said in May it would spend just £160m on Woodsmith next year and nothing in 2026. It had previously planned to spend £800m each year. Wanblad’s plan to justify his position as chief executive also includes spinning off the De Beers diamond business. Anglo declined to comment.