Growth market? Anglo’s brave dive into British fertiliser
Why did no other major miner want a cut-price asset in which $1.1bn has already been invested?
Anglo American is taking a R7.6bn bet on a relatively new fertiliser feedstock called polyhalite by buying Sirius Minerals, a British company developing a mine to extract the product.
This is before it invests another $3.3bn (about R48bn) to complete the partially built mine, processing plant and dedicated port facilities at Teesside in northeast England.
Of interest to shareholders is how Anglo develops and sells the polyhalite, which is more commonly known as poly4 for its four elements, in a large and competitive fertiliser market...