Anglo American - Even Extractive Companies can become Regenerative

The Orbis Sacri definition of regenerative business: 

'is one that systematically and symbiotically creates value for all stakeholders, including communities, all life, and our planet.’

As explained, my research into regenerative business was inspired by the software and technology company Zoho. My journey of discovery continues, and sometime last summer, I stumbled upon a truly unique endeavour — the Woodsmith Project.

This multi-billion dollar mining project in my native county of Yorkshire, in the North of the UK, paradoxically stands out for its regenerative approach. I sought inspiring stories of businesses exhibiting regenerative characteristics, but a mining company? At first glance, that seemed like an oxymoron.

I did some background research into Anglo American. I wanted to understand if this global mining company, which acquired the project through its acquisition of Sirius Minerals plc in 2020, had genuine regenerative leanings.

Today, the $30 billion company with 90,000 employees has fifty-six mines in fifteen regions, mining copper, nickel, platinum group metals, diamonds (De Beers), iron ore, steelmaking coal, manganese, and polyhalite, organic, natural fertiliser from The Woodsmith Project.

In 1954, Ernest Oppenheimer declared a new long-term vision for the British mining company he established in 1917:

‘The aims of this Group are, and will remain, to make profits for our shareholders, but to do so in such a way as to make a real and lasting contribution to the communities in which we operate.’

This vision remains current and is very much in evidence, supporting host communities, improving employee safety and well-being, and continuously improving sustainability. Today, the company articulates its purpose as:

    ''re-imagining mining to improve people’s lives.''

This is more than just a corporate slogan.

While ESG has been on the corporate and investor radars since 2006, Anglo-American has been a pioneer since Oppenheimer gave the company its visionary purpose. Here are a few highlights.

In 1974, the Chairman’s Fund was established, the first-of-its-kind social investment fund in South Africa. This annual fund supports a wide range of social programs, such as the Center for Deaf Studies, inner-city rejuvenation, health and welfare centres, soil health, alcoholism, and leadership through values, music, and the arts for youth development.

• Anglo-American was the first mining company to recognise black trade unions in 1985.
• Anglo American supported the HIV/AIDS testing campaign in 1986. In 2002, it introduced free voluntary testing for the disease and provided free anti-retroviral medicine for infected employees. In 2008, the program was extended to employees’ families.
• From a host community perspective, in 1989, the company established the Zimbele job creation scheme, which today supports 2,200 businesses employing over 460,000 employees.
• In 2007, collaborating with CARE International UK, it formed a partnership to support and empower sustainable local communities in every host country in which it operates. The list goes on.

Anglo American has demonstrated an active interest in sustainability and biodiversity since the first decade of the 21st century.

• In 2001, it was a founding signatory to the International Council on Mining and Metals 10 Principles of Mining and Sustainable Development and, in 2003, developed a biodiversity strategy and mandate for site-specific Biodiversity Action Plans.
• In 2017, the company launched its FutureSmart collaborative innovation program to recycle water from mining operations, intending to become a net water contributor by 2025.

With these and many other initiatives, Anglo-American is well on its way to becoming regenerative. A more detailed timeline for employee and community welfare and sustainability initiatives can be found in the appendix.

Now, let’s turn to the Woodsmith Project, which exhibits regenerative characteristics within the definition above.

The Woodsmith Project supports regenerative farming, the local community, and global distribution to provide natural fertiliser to boost food production

According to Our World in Data, to meet the needs of a growing population forecast by the UN to reach 11.2 billion by 2100, we need to substantially boost food production despite having already passed peak agricultural land .¹

More deforestation and biodiversity destruction caused by even more monoculture farms that pollute rivers and degrade the soil is not the answer. Polyhalite, an organic fertiliser, can significantly contribute to meeting the demand for increased food production through regenerative farming methods.

The role of polyhalite ( brand name POLY4) in regenerative farming and food production

Regenerative farming aims to improve soil health, which is often degraded by heavy machinery, fertilisers, and pesticides. Modern intensive farming destroys the soil’s microbiome over time, rendering it almost sterile and stripped of the essential nutrients plants need for healthy growth. Other negative impacts include loss of biodiversity and insect habitats and pollution in adjacent streams and rivers through chemical run-off, which causes pollution and further biodiversity loss.

In March 2018, an article by The World Economic Forum highlighted the value of regenerative farming in reversing climate change and biodiversity loss. Intensive farming methods not only degrade the soil but are also one of the prime causes of global warming through carbon dioxide emissions.

So, we have at least three connected environmental problems that regenerative farming practices can help to redress:

• Improve soil health to boost food production for the world’s growing population.
• Enhance biodiversity and reduce secondary pollution.
• Reduce the carbon footprint by improving the soil, which is a natural carbon sink.

In 2010, York Potash Ltd. sought to mine potash for fertilisers. In 2011, the company sunk seventeen exploratory boreholes and discovered the world’s largest known polyhalite deposits. Polyhalite is a natural organic fertiliser and a rich source of essential soil nutrients, including calcium, magnesium, potassium, and sulphur.

Based on analyses from the boreholes in 2013, geologists estimated 2.66 billion tonnes of polyhalite at an average grade of 85.7% under the North Yorkshire Moors, a UK national park of outstanding beauty. Detailed plans that mitigated any unsightly mine were submitted, and planning permission was granted in 2015 by Redcar and Cleveland Borough Council and North York Moors National Park Authority, despite opposition from several interest groups, including the Royal Society for the Protection of Birds (RSPB), the Caravan Club and Campaign for National Parks (CNP). 2016, a definitive feasibility study included details on design, construction, costs, and environmental protection. Dove’s Nest Farm, near the village of Sneaton, was identified as the best place for the mineshafts.

At the opening ceremony in 2017, the project was renamed Woodsmith in honour of the two geologists, Peter Woods and Rick Smith, who worked on the original project. The Drive 1 tunneling machine, nicknamed Stella Rose by children at a local school, began boring the 23-mile/37-km tunnel that would provide an underground conveyor system from the mine to a production site.

Sirius Minerals plc, which acquired York Potash Ltd in 2011, was acquired by Anglo American in 2020 following financial struggles. In 2017, Anglo American stepped in to save the project with a $1.7bn impairment. It earmarked $6.1bn to complete the Woodsmith Project sometime in 2027.

four main components of the Woodsmith Project:

1. To reach the polyhalite seam, A 5,250 feet / 1,600m mine shaft.
2. Mineral Transport System, a 23 miles/37km underground conveyor system to the Mineral Handling Facility at Wilton on Teeside
3. Mineral Handling Facility, where the ore is reduced to granules, packed, and shipped overland via conveyor to the port.
4. The purpose-built deep water port for sizeable bulk cargo ships at Bran Sands on the river Tees, including storage sheds and the capacity to distribute 13 million tonnes a year of POLY4 when it comes online in 2027. The port will be built on land formerly occupied by a disused steelworks. Anglo American will also develop a wildlife lagoon to benefit sea birds and other wildlife.

After acquiring the Woodsmith Project, Anglo Americans faced several environmental and social challenges and responded sensitively and creatively to the concerns of ecological and local communities.

To offset understandable concerns about a possible blemish on the natural beauty of the North Yorkshire National Park, the entire project has been designed to minimise the environmental and ecological impact. The above jigsaw of numbered screenshots exhibits the level of care and creativity in developing what would otherwise be an eyesore and create adverse environmental impacts.

1. The mine will be hidden from view, surrounded by woodland. The entrance to the site is invisible from the main road and consists of a long curved access road surrounded by trees. The company has planted over 100ha of trees to support the environment and screen the site from view.
2. On-site buildings are clad in natural wood and in keeping with local farm outbuildings.
3. The perimeter is a traditional Yorkshire stone in keeping with the area. Additionally, Anglo American supports local crafts, such as stonewalling and thatching, to maintain traditional skills.
4. An on-site wetland was created to support indigenous wildlife and insects. It also provides a natural filter as part of the company’s system of measures to return potable water from mining. Regular water testing will be carried out to ensure that water quality meets the required ecological standards.
5. Unlike traditional mines, the Woodsmith mine is carefully disguised and largely hidden from view.
6. Minerals will be transported underground by the Mineral Transport System’s conveyor belt.
7. The final image is a map of the entire project.

Anglo American has been proactively transparent with the local community from start to completion. The approach resembles Zoho’s ‘transnational localism’,³ where community involvement is customised to local needs. Community relationships are critical for success, and regional stakeholders, including site neighbours, community representatives, local groups, charities, businesses, and the public, are kept informed at every stage of development. A Liaison Group Forum meets regularly at the mine site, and a list of local public meetings that anyone can attend is published. These monthly meetings take place in village halls in surrounding villages.

In 2023, the company contributed £305 million directly to the regional economy, including sourcing goods and services from local businesses and an estimated boost to the local economy of £1.5 billion since the project started. £1.9 million was invested in projects that support tourism, training, and the environment.

Since Anglo American took charge of the Woodsmith Project in 2020, it donated £ 4 million to an independent charity, The Woodsmith Foundation, funded by Anglo American, whose aim is to leave a positive legacy from the project to the boroughs of Scarborough, Redcar, and Cleveland, and the York Moors National Park. In December 2023, a further £4 million was committed to the foundation. Substantial donations by the charity have helped a variety of local businesses. The Whitby Lobster Hatchery was one of the beneficiaries. In addition to the direct £50,000 donation from Anglo American, a further £95,000 was added by the Woodsmith Foundation. The Whitby Lobster Hatchery was set up to boost the lobster population and save Whitby’s fishing heritage. Wild egg-bearing lobsters are caught and brought to the hatchery, which provides a safe environment before being released. The target is to release 100,000 juveniles and save the industry from decline. Other beneficiaries of the Foundation include sports for the young, such as football, boxing, and skateboarding. In 2023, the Foundation distributed £595,000 in funding, comprising 113 grants and £195,000 towards the local education programme Achieve. This is part of Anglo American’s Thriving Communities programme to help disadvantaged children, their parents, carers, and families.

By any measure, Anglo American has made a significant contribution to its employees, local communities, and the environment. Its stated purpose is to reimagine mining to improve lives, as the Woodsmith Project exemplifies. While mining, by definition, will always be an extractive process, Anglo-American shows that it doesn’t have to be destructive and leave a wasteland in its wake. Fundamentally, values shape the direction of any company, irrespective of size or industry. I am optimistic that even large companies owned by institutional and private investors can remain true to their vision. Too many corporations adopt short-term, share-price thinking at the expense of employees, communities, and the environment. Anglo American has always taken the long view and lives up to its values, which is a refreshing change.

Long may it continue on its regenerative journey.

1. Hannah Ritchie (2022) — “After millennia of agricultural expansion, the world has passed ‘peak agricultural land’” Published online at OurWorldInData.org. Retrieved from: ‘https://ourworldindata.org/peak-agriculture-land'
2. [https://www.worldfertilizer.com/project-news/07092023/tesco-unveils-rapid-expansion-of-low-carbon-fertilizer-trial/]
3. [https://medium.com/illumination/zoho-the-regenerative-company-f9ef079ec863]

1. History of employee and community care