Anglo American, the owner of a controversial fertiliser mine in North Yorkshire that has been paused this year, has announced a strategic partnership with two Chinese agricultural producers to develop a market for the experimental crop nutrient.

The company has entered into a memorandum of understanding with Sinochem Fertilizer, the leading distributor of agricultural products in China, alongside BeiFeng AMP, the third-largest player in the sector. This collaboration aims to explore potential sales avenues in China, refine marketing approaches, and conduct additional research into the application of polyhalite across different crops.

Tom McCulley, the head of Anglo American’s crop nutrients division, emphasized that China represents a vital market for the company as it seeks to establish a significant presence in the polyhalite sector.

The Woodsmith mine, located near Sneatonthorpe, is expected to feature Britain’s longest underground tunnel, measuring approximately 23 miles, and the deepest mine in Europe. It has the potential to yield substantial quantities of polyhalite, a lesser-used fertiliser, although the market’s viability remains untested. Currently, 17 miles of the tunnel have been completed, with the mine shafts reaching depths of 2,600 feet and 2,000 feet respectively.

Work at the mine has recently been reduced significantly under a restructuring initiative launched in May, following a £39 billion takeover bid from BHP, the world’s largest mining firm. Anglo American’s planned expenditures have been scaled back to $1 billion over the next three years, a notable reduction from the nearly $3 billion initially proposed, which included $900 million earmarked for this year. This move has put about 2,000 jobs at risk.

Originally, the first production from the mine was scheduled for 2027, but it is now expected to commence in 2030, as stated by Duncan Wanblad, Anglo’s chief executive. The continuation of the project hinges on the outcomes of a feasibility study set to finalize early next year, as well as on repairing the company’s financial position and securing a partner to help fund development costs.

Despite challenges, Wanblad has expressed a commitment to the project, asserting in July that there are no intentions to indefinitely postpone it, labeling the Woodsmith mine as “one of the most exciting projects in the industry today.”

In the same month, Anglo American disclosed a $1.6 billion writedown related to the mine’s valuation, which has faced numerous funding obstacles since Anglo’s acquisition in 2020 through a £400 million rescue takeover of Sirius Minerals, the project’s original developer.

Following this news, shares of Anglo American declined by 30p, equivalent to a 1.3% drop, closing at £22.09.