Anglo American PLC (LSE:AAL) said that its merger with Teck Resources Ltd (TSX:TECK.B) will not affect its development of the Woodsmith project in Yorkshire, which it still describes as a "potential generational asset" in crop nutrients.
The deep underground project was acquired in 2020 when Anglo bought Sirius Minerals, the former AIM-listed company behind the scheme.
Since then, Anglo has invested over £1.1 billion in construction, which includes a 23-mile underground conveyor to connect the world’s largest-known deposit of polyhalite to a processing facility on Teesside.
The company has previously slowed development spending while seeking partners to share the cost of full delivery.
Anglo suggested that syndication will be required before committing to the final build-out.
"Anglo Teck will continue to progress the development of the Woodsmith project in the UK with its ongoing potential to be a generational asset in crop nutrients,” the company said.
"Full development remains subject to meeting stringent investment criteria for risk-adjusted value, including syndication to one or more investment/strategic partners.”
While Anglo has said the underground mine is being designed as the latest 'next generation' mine, with high levels of automation and minimal footprint at surface level, the handbrake remains on development while a potential partner is found.
In May last year, the company announced that it would slow the development of Woodsmith in the near term to support balance sheet deleveraging, with the project focusing on critical studies, shaft sinking and other activities to support syndication with a strategic partner.
Capital expenditure of circa $300 million was expected in 2025 with around $100 million of operating expenditure in 2025 and 2026 from these activities.
Anglo insisted that it "continues to recognise the asset’s unique mineral endowment and long-term value potential".