Mining giant Anglo American has reaffirmed that its halted Woodsmith Project could resume within two years.
Executives at the FTSE100 global company say progress has been made on the multibillion-pound scheme, despite significantly reduced investment in the site and suspension of some activities which triggered hundreds of redundancies.
Work to construct the 37km long tunnel that will transport polyhalite fertiliser from the mine site near Whitby to Redcar, where it will be processed and exported, has proceeded at a reduced rate with approximately 29.6km of the tunnel now excavated.
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There has also reportedly been substantial advancement on the sinking of a service shaft at the mine site.
The first half of this year has witnessed workers drilling through sandstone rock formations, alongside grouting and installation of water-tight lining, reports .
Meanwhile sinking of the mine's main production shaft has been suspended for more than a year.
Anglo said it remains concentrated on maintaining the "exceptional, long-term value" of the mine, and has highlighted three criteria that must be satisfied before it can receive approval for full development by its board.
The conditions include completion of a feasibility study utilising information from the sandstone rock strata; securing a "syndication" partner on the project and reduction of debt on the group's balance sheet. In an update to investors, it said: "The transition to slowdown status was completed in Q1 2025 with activities now focused on critical value-adding works to de-risk the overall project schedule, preserve progress in areas that are in care and maintenance, and further optimise certain scopes of the project to be ready for ramp-up when conditions allow."
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Approximately $300m (£226m) is anticipated to be spent on the Woodsmith scheme this year, with $184m (£139m) already committed during the first six months of this year.
This represents a decline from $500m (£377.8m) in the same period last year.
Anglo states it will maintain funding for its Thriving Communities initiative that provides assistance for education and at-risk young people.
Management also confirms they are engaging with local residents to communicate any project modifications and tackle concerns.
The Woodsmith scheme encompasses the mining site, located near Sneatonthorpe, south of Whitby, which will tap into vast polyhalite reserves that can serve as the basis for Anglo's Poly4 fertiliser product, which the company claims offers substantial growth and decarbonisation advantages for farmers.
The polyhalite will be removed via two 1.6km deep mining shafts and subsequently transported below ground on an enormous conveyor network spanning 37km to Redcar, where it will undergo processing before being dispatched to clients globally.
Details of the Woodsmith scheme's activity emerged as Anglo American reported a $1.9bn loss for the first half of the year, amid plans to divest its coal and diamond mining businesses.
The company's share price fell in response to the news.