Anglo American Plc took a $1.7 billion writedown on the giant fertilizer project in the North of England that it rescued from collapse three years ago, and said the mine is now expected to start sales in 2027.
(Bloomberg) — Anglo American Plc took a $1.7 billion writedown on the giant fertilizer project in the North of England that it rescued from collapse three years ago, and said the mine is now expected to start sales in 2027.
Anglo expects annual capital spending on the project of about $1 billion, it said as it reported annual results on Thursday. The company had repeatedly delayed unveiling its development plans, after it bought owner Sirius Minerals Plc in a 2020 deal worth about half a billion dollars.
Click here for key figures from Anglo’s earnings report
The writedown reflects the difference in development approach from Sirius’s earlier plans, after the larger miner spent the last three years turning the mining plans of what was essentially a startup into a project that it sees as more suitable for a company of its size.
“We believe that the changes we have made to the project have had a materially positive impact on the project’s long term attractiveness and prospects,” Anglo said.
Sirius had been desperately trying to build the project for years, but fell short when it failed to secure funding. Its plan had originally envisaged production by 2021.
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