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Commodity

5 March 2026

Mitsubishi invests in Woodsmith polyhalite mine

Written by Simon inglethorpe

Mitsubishi Corporation has invested an undisclosed sum in Anglo American’s under-construction Woodsmith polyhalite mine in the UK.

The investment agreement was announced by both companies on 20th February.

Although the details are confidential, the agreement includes an initial equity investment by Mitsubishi in Woodsmith. This will support the continued development of the mine, located near Whitby, Yorkshire, on England’s North Sea coast, until a final investment decision (FID) is made by the Anglo American’s board. This is now expected from 2028 onwards.

Anglo American has made its final approval of the Woodsmith mine project subject to three tests:

  1. The completion of a feasibility study to demonstrate its “robust economic potential”
  2. A clear “pathway to syndication” by securing of one or more investment partners
  3. “Sufficient deleveraging” of Anglo American’s balance sheet, i.e., debt reduction.

Mitsubishi will decide whether to contribute further financing to the project when the FID is made, potentially acquiring an equity stake of 25% at this time. Until then, Anglo American will press on with critical construction activities at Woodsmith, with an annual investment of approximately $300 million.

The company confirmed to Fertilizer International that Woodsmith’s capex and opex have been updated, with $300 million per annum now committed for both 2026 and 2027. More than 1,000 people are working on the project currently.

Mitsubishi says it will contribute to and help fund the project’s feasibility study. The two companies will carry out joint pilot sales to validate the marketability of Woodsmith’s POLY4 polyhalite product, for example.

Mitsubishi will also explore opportunities to boost demand for POLY4, including options for further agronomic trials.

The feasibility study will “assess development and operational plans, economic viability, and social and environmental impacts of the project”, Mitsubishi said.

Anglo American hailed the support from Mitsubishi as a major boost to the development of the Woodsmith mine by a major international investor.

Tom McCulley, CEO of Anglo American’s Crop Nutrients, said: “This is fantastic news for the Woodsmith project. We are delighted that Mitsubishi has shown such confidence in the enormous potential of Woodsmith and the global market for our highly effective POLY4 fertiliser product.”

Peter Kyle, UK Secretary of State for Business and Trade, also welcomed the news: “This partnership between Anglo American and Mitsubishi is a major milestone for this significant project, building on the almost £2 billion boost to North Yorkshire’s economy and over 1,000 jobs created since construction began in 2017. It’s a game changing investment that will help the UK to become a major global fertiliser producer, boosting sustainable and secure food production, whilst delivering £1.5 billion per year to the UK economy.”

The new agreement builds on a longstanding partnership between Anglo American and Mitsubishi Corporation, most recently at the Quellaveco copper mine in Peru, which is 40% owned by Mitsubishi.

Yuuki Yoshioka, General Manager of Fertilizer Resources Unit in Mitsubishi Corporation, said: “We are really pleased to build on our existing partnership with Anglo American on such an exciting project. Demand for sustainable fertilizer products is poised to increase as agriculture faces rising expectations to reduce environmental impact and adopt responsible farming practices. We will use our expertise in mine development and Mitsubishi’s strengths across business segments—including the food and agriculture related businesses—to generate new value for the Project.”

New agronomic results

The investment from Mitsubishi follows the recent publication of a comprehensive study of polyhalite’s agronomic benefits in Agronomy Journal. Based on a decade’s worth of global trials, this confirmed that Anglo American’s POLY4 product typically improves crop yields by 3-5%, compared to conventional fertilizer practice, across a wide range of crops, soils and growing environments.

“The study… found to the highest possible scientific standard that polyhalite’s ability to improve yield across a range of diverse soils, crops and geographies demonstrated its value as an effective and sustainable future farming solution,” Anglo American said.

In potentially a major consolidation of the mining industry, Anglo American and Canada’s Teck Resources announced a mutually agreed “merger of equals” on 9th September last year. The merger agreement was unanimously back by the boards of both companies. It is expected to complete within 12-18 months, subject to customary regulatory and clearance conditions

Simon inglethorpe

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