Anglo American PLC (LSE:AAL) should rethink its plan to cut investment in the Woodsmith fertiliser project in North Yorkshire, local politicians have said.
As part of its rejection of a takeover proposal from Australia's BHP, the FTSE 100 group said it would sell De Beers and its platinum arm and regroup around copper and iron ore, also retaining its Crop Nutrients division.
But Anglo said it would reduce capital expenditure on the polyhalite mine to US$200 million in 2025 and zero in 2026.
Anglo Crop Nutrients was holding an internal 'town hall' meeting today to share details on the project's slowdown, Reuters reported.
Local Tory MP Roberto Weeden-Sanz told the newswire he urged the company to consider the "catastrophic impact" as the project and its supply chain are responsible for around 2,000 jobs in the area and generated £1.5 billion to the regional economy.
He said it "should not be used as a sacrificial lamb to fend off a takeover".
However, as the mine has already soaked up US$7 billion in investment, the group has been looking for partners.
Ben Houchen, mayor of the Tees Valley, also called for Anglo to engage with the government to "make sure every option is considered before drastic measures are taken".