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of rival Anglo American Plc is all about securing plenty of copper supplies — so now, the potential deal is throwing uncertainty over the future for Anglo’s massive fertilizer mine in England.
Underscoring the doubt is the fact that the Woodsmith project involves polyhalite, a relatively obscure fertilizer product with unproven demand. The project has a checkered past — its previous owner Sirius Minerals Plc rode a wave of retail investor enthusiasm to develop it, only to fail to raise the final piece of financing.
The Woodsmith mine makes the deal “very awkward indeed — it’s the reason why we didn’t think BHP would get involved with Anglo American,” said Ben Davis, a mining analyst at Liberum Capital Inc. “BHP clearly doesn’t think much of it.” calling it undervalued and “opportunistic.” But some investors are positioning for BHP to raise its bid. Elliott Investment Management has built a roughly $1 billion stake in UK-listed Anglo.
The project is “probably more of a nuisance than anything else,” said Maxime Kogge, an analyst at Oddo BHF SCA. “The project is on good tracks, but demand prospects are still quite elusive as the market does not really exist today.”London’s mining crown under threat from $39 billion Anglo bid
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