Anglo-American bid for Sirius undecided
Posted on 15th January 2020
Giant mining company Anglo-American has until 5 February to decide whether to go ahead with its $500 million bid to save the Woodsmith Mine - but the market for the mine's polyhalite is uncertain.
The potential bid for Sirius Minerals by mining firm Anglo-American is still undecided. The offer - around $500 million - would be small cash for the giant company and would guarantee the future of the Wordsmith Mine, whose minehead sits in the North York Moors. However, the deal is by no means certain. The company would have to invest a further $3 billion over the next five years in order to start production, including completing the 23-mile tunnel needed to transport the mineral to port facilities at Teesside. An article by the Influential business news agency Bloomberg points out that this would be a speculative bid, given that the market for the polyhalite to be produced by the mine is unproven - and that even if it goes through, there will be no firm commitment to developing the mine.
The company has until 5 February to make a firm offer.
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