Why Australia's richest person Gina Rinehart is affected by delay to massive Yorkshire mine

It had been expected that the mine would open in 2027 but it was announced earlier this week that Anglo American is to “slow the development” of the site, with opening now expected to be delayed by at least two years.

The decision is part of broader efforts by Anglo American to cut costs as it fights off a £34bn takeover bid by rival mining giant BHP.

It has cast major doubt over the future of Woodsmith Project, which already employs around 2,000 people in a major construction effort, and was expected to provide around 1,000 permanent jobs and hundreds more in the local supply chain.

The scheme involves the creation of a new mining site near Sneaton to the south of Whitby and a 23 mile tunnel that will transport a naturally occurring mineral, polyhalite, to new processing and shipping facilities on Teesside.

It is intended the product will be sold as a fertiliser suitable for organic use that can boost crop yields and aid more sustainable farming.

Construction started back in 2017 and was taken over by Anglo American in 2020 from previous owners Sirius Minerals.

Anglo American has already invested £2bn in the project, with nearly 18 miles of the 23-mile tunnel already built.

The company has previously said capital expenditure on the project was expected to be around £800m a year between 2024 and 2026. But the new announcement states $200m (£159m) will be spent in 2025 and nothing in 2026. The planned £800m investment for this year is understood to still be going ahead.

The Woodsmith Project is too big to fail: Greg Wright

Hancock’s five per cent royalty figure applies to first 13 million tonnes produced at the mine, dropping to one per cent on all sold product thereafter.

It also has an option due to receive 20,000 tonnes of product per year for use in its Australian agricultural business.

Hancock did not wish to comment about this week’s developments when contacted by The Yorkshire Post.

The Australian firm originally invested in the scheme back in 2016 with then-owner Sirius Minerals and also purchased $50m of shares in Sirius.

Gina Rinehart said at the time: “This project delivers a new and natural product which is relevant to Hancock’s focus on agriculture and after years of field tests and across many crop types, demonstrated improved yields.

“The project has the potential to become one of the world’s leading producers of multi-nutrient fertiliser, and could have a life of 100 years – this fits with my approach of investing in strategic areas for the long term, and I hope the product is of assistance to many Australian farmers.”

Forbes recently said Mrs Rinehart is Australia’s richest person, with estimated fortune of more than $30bn. The magazine said: “The daughter of iron ore explorer Lang Hancock, Rinehart rebuilt her late father's financially distressed company, Hancock Prospecting, becoming executive chairwoman in 1992.”

MP hopes BHP would press ahead with project

​Local MP Sir Robert Goodwill has expressed hopes that a potential takeover of Anglo American by BHP would still allow the Woodsmith Project to progress.

BHP has its own fertiliser mine project in Canada – leading to doubts that it would want to progress Woodsmith if it does end up succeeding with the potential Anglo American takeover.

But Sir Robert, who represents Scarborough and Whitby, said he hopes that BHP would view the twin sites as a potential benefit with them both linked to different types of product.

"If the takeover did happen, then maybe BHP would understand the symmetry between the two,” he said.

BHP has not commented publicly on its intentions for the Woodsmith project should its takeover efforts succeed.