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Anglo American upgrades scope of Woodsmith polyhalite fertiliser project to optimise long term value
Anglo American plc (the “Company”)
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
10 December 2021
Anglo American upgrades scope of Woodsmith polyhalite fertiliser project to optimise long term value
Anglo American has conducted a detailed technical review of the Woodsmith polyhalite project in the UK
since mid-2020 to ensure the technical and commercial integrity of the full scope of its design. Now
largely complete, the review has confirmed the findings of Anglo American’s due diligence that a number
of elements of the project’s design would benefit from modification to bring it up to Anglo American’s
safety and operating integrity standards and to optimise the value of the asset for the long term.
Anglo American is also making a change to the leadership of the project following its integration into
Anglo American and ahead of the full project execution phase. Tom McCulley, who has led the
development of the Quellaveco copper project in Peru, will take over from Chris Fraser as CEO of Crop
Nutrients. After 12 years of driving the project from inception to its position today, Chris Fraser will step
aside and take on a strategic projects role for Anglo American.
Woodsmith project update
The Woodsmith team is further developing the engineering to optimise the configuration of the project,
recognising the multi-decade life of the mine. Particular attention is on those aspects identified at the
outset of Anglo American’s ownership – namely, the sinking of the two main shafts, the development of
the underground mining area, and the changes required to accommodate both increased production
capacity and the more efficient and scalable mining method of using only continuous miners; such
improvements will also require the installation of additional ventilation earlier in the development of the
underground mining area.
Anglo American expects that these changes to the design of the mine infrastructure – which will result in
a different, enhanced configuration and therefore a different construction and production ramp-up
schedule – will ensure that its exacting standards are met and the full commercial value of the asset is
realised.
Mark Cutifani, Chief Executive of Anglo American, said: “We are very happy with the high quality and
exciting potential of Woodsmith, with the scale and quality of the polyhalite orebody pointing to a Q1
operating cost position and strong margins. This is a very long-life asset and we are going to take the
necessary time to get every aspect of the design right to match our long term vision and value aspirations.
“We have said from the outset that we expect to make improvements and that we will execute certain
elements of the construction differently and with a more conservative schedule. We expect to have
completed our design engineering, capital budget and schedule at the end of 2022, with a fully optimised
value case that recognises the upside potential we see in Woodsmith, and we will then submit the full
project to the Board.”
In the meantime, construction of the major critical path elements of the project, principally the two main
shafts and the mineral transport tunnel, is progressing, with approximately $0.7 billion of capital
expected to be invested in 2022.
Anglo American’s development of the market for its POLY4 fertiliser product continues to demonstrate
the benefits of its multi-nutrient, low chloride characteristics on the full breadth of crops at commercial
scale. Beyond its crop yield and quality benefits over other bulk fertiliser products, the value of the
product in the market is also expected to be enhanced by its positive environmental properties – a very
low carbon footprint given minimal processing requirements, its natural ability to improve soil health,
and its certification for organic use.
Woodsmith leadership change
With the project’s integration into Anglo American complete, Mark Cutifani added: “We are enormously
grateful to Chris Fraser for his founding vision over some 12 years in bringing Woodsmith to reality – a
project with sustainability principles at the core of its design and in the product itself. His dedicated
leadership in progressing the project this far and integrating it into our organisation, and doing so while
making considerable construction progress during the upheavals of the pandemic, also deserves
enormous credit. As we move towards full project execution, it is a natural time for Chris to step into a
new role and I’m pleased that we will benefit from his experience as he works with us on a number of
strategic projects.
“I am delighted that Tom McCulley, currently CEO of Anglo American in Peru, who has so skilfully steered
our Quellaveco copper project to a point of pre-commissioning, on time and on budget, will now lead the
development of Woodsmith as CEO of our Crop Nutrients business. I am confident that Tom and his team
will finalise our plans and then deliver the project we all envisage safely and with great precision.”
The changes to Tom McCulley’s and Chris Fraser’s roles are effective 1 January 2022. Anglo American has
appointed Adolfo Heeren as CEO of Anglo American in Peru, effective 1 January 2022. Adolfo will work
together with Tom McCulley during the first half of 2022 to ensure a smooth transition from the
construction and commissioning phase of Quellaveco into operations, expecting first copper production
in mid-2022.
Notes to editors:
Tom McCulley, age 53, has served as CEO of Anglo American in Peru since 2018 and Group Head of
Projects for Anglo American since he joined Anglo American in 2015. Tom brings more than 25 years of
international experience in major projects across the mining, oil and gas industries, and has led the
development of Anglo American’s Quellaveco copper project in Peru that is expected to come onstream
in mid-2022. Prior to joining Anglo American, he held several senior global roles at Newmont, including
Vice President of Investment and Value Management and Vice President of Discovery and Development
Planning and Services. Tom began his career at Fluor Corporation in international oil and gas and mining
projects, developing his full project lifecycle expertise. Tom has a Bachelor of Science in Accounting from
Mount Saint Mary’s University, Emmitsburg, USA.
Adolfo Heeren, age 52, served as CEO of TgP and Coga, the Peruvian gas transport company and its
operating company, between 2015 and 2020 and as CEO of Calidda, the Peruvian natural gas distribution
company, between 2011 and 2015. Prior to that, Adolfo spent 15 years with Shell in a number of
commercial, planning and finance roles across South America, ultimately as Chair of Shell in Peru. He
brings extensive experience in the responsible development of large investment projects in the region,
both at the asset level and as the senior most executive at a national level. Adolfo has a degree in
Industrial Engineering from the Pontifical Catholic University of Peru and an MBA from the Adolfo Ibañez
University in Chile.
Anglo American is a leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad
range of future development options, provides many of the future-enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions
of consumers. With our people at the heart of our business, we use innovative practices and the latest
technologies to discover new resources and to mine, process, move and market our products to our
customers – safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium
quality iron ore and metallurgical coal for steelmaking, and nickel – with crop nutrients in development
– we are committed to being carbon neutral across our operations by 2040. More broadly, our
Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy
environment, creating thriving communities and building trust as a corporate leader. We work together
with our business partners and diverse stakeholders to unlock enduring value from precious natural
resources for the benefit of the communities and countries in which we operate, for society as a whole,
and for our shareholders. Anglo American is re-imagining mining to improve people’s lives.
www.angloamerican.com
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Juliet Newth
marcelo.esquivel@angloamerican.com juliet.newth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8830
Katie Ryall Michelle Jarman
katie.ryall@angloamerican.com michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 8935 Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Forward-looking statements:
This document includes forward-looking statements. All statements other than statements of historical facts included
in this document, including, without limitation, those regarding Anglo American’s financial position, business,
acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations
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Legal Entity Identifier: 549300S9XF92D1X8ME43
The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 10-12-2021 09:00:00
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