Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Anglo American on Friday said it had signed agreements with Chinese fertilizer companies Sinochem Fertiliser and BeiFeng AMP to develop the market for polyhalite fertilizer products in China, even as it slowed the development of its mine for the mineral in northern England.
The partnership will include collaborative research on arable crops such as corn, soybean, potato, rice and high value ones like apple, citrus and grapes, Anglo said.
Anglo said it will supply polyhalite from its multi-billion-dollar Woodsmith mine project in North Yorkshire as part of the agreements, even as it pushed back the date of first production from 2027 and took impairments of $3.3 billion so far.
The company has been looking for partners for the project as part of a wider overhaul of its business, and said the division is one of its three pillars alongside copper and iron ore after its restructuring.
“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,” said Tom McCulley, CEO of Anglo’s Crop Nutrients.
The London-listed miner says polyhalite, a naturally-occurring mineral containing nutrients including potassium, calcium, magnesium and sulphur, has the potential to improve the crop yield by 3% to 5%. It says fertilizers using the mineral are low carbon and soil friendly.
The Woodsmith mine has the world’s largest known deposit of the mineral.
(By Clara Denina and Shanima A; Editing by Nivedita Bhattacharjee and Miral Fahmy)
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