The acquisition of Sirius Minerals by Anglo American is officially complete. The final legal process became effective on 17 March 2020, when Sirius shares stopped trading and its stock market listing was cancelled.

Anglo American Woodsmith project

Although the Sirius Minerals mine project has been renamed the Anglo American Woodsmith project, there are no changes to construction contracts, which will follow the development plan that was set out by Sirius Minerals. Ongoing construction is expected to be completed over the next two years.

Sirius Minerals Chairman Russell Scrimshaw, Senior Independent Director Elizabeth Noel Harwerth, and each of the company non-executive Directors have resigned. On his last day as Chairman, Scrimshaw released an open letter to shareholders thanking all stakeholders involved in the project and apologised that the company was not able to deliver the project on its own. “I take great comfort knowing that the project will be taken over by a responsible business and team at Anglo American, such is the importance of the delivery of the project to the local area, the country and indeed the industry as a whole,” he said.

Anglo American Chief Executive Mark Cutifani said: “Today marks a new chapter for the Woodsmith project. For the employees of the business and everyone who has an interest in its future, the takeover offers the prospect of sustained employment and economic stimulus for the local area and the wider British economy for many decades to come.”

The proposed takeover of Sirius Minerals by Anglo American has been approved in a vote by shareholders. A majority of investors backed the £405 million rescue bid at a meeting in London on 3 March 2020, in an effort to save the company from administration.

Polyhalite project moves closer to completion

Requiring a majority of individual shareholders to vote in favour of the deal, the vote won 62% support; and requiring 75% approval of shares by value, received 80% support.

The vote comes after Sirius Minerals failed to raise the finance it required from bond investors at the end of 2019 to complete its Woodsmith Mine project in North Yorkshire, UK. After already spending more than US$1 billion on the polyhalite mine, Sirius Minerals was offered a lifeline from mining giant Anglo American in January 2020, albeit at a much lower share capital value than the Board and investors had hoped.

Shareholders were asked to vote in favour of the Anglo American offer of 5.5p per share, despite many standing to make a significant financial loss after buying into the company at up to 25p per share. However, the Sirius Board warned investors that they risked losing their entire investment if they did not support the takeover, as the only likely alternative to the deal was that Sirius would collapse into administration by the end of March 2020.

Russell Scrimshaw, Chairman of Sirius, said: “The positive outcome from the meeting secures a return for shareholders, and provides greater certainty in terms of safeguarding the project, protecting the jobs of our employees, and allowing the community, region and the UK to continue to benefit from the project.”

The deal remains subject to the sanction of the court at a hearing due to be held on 13 March 2020, after which the takeover is expected to be effective as of 16 March 2020.