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Woodsmith Project Economic Impact Report
MARCH 2026 Q40269 0000-QUO-EN-RP-00001 Rev 0
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Contents
1 Executive Summary________________________________________________________ 2 2 Economic and Political Context _______________________________________________ 9 3 Construction Impacts______________________________________________________ 19 4 Operational Impacts_______________________________________________________ 25 5 Delivering wider local and community benefits __________________________________ 28 6 Conclusion______________________________________________________________ 32 Table 1:1 Summary of Past and Future Construction Impacts _____________________________4 Table 1:2 Summary of Operational Impacts ___________________________________________4 Table 2:1 Woodsmith Project Geographies ___________________________________________9 Table 3:1 Summary of Total Economic Impacts 2017-2025 ______________________________21 Table 3:2 Summary of Construction Impacts _________________________________________24 Table 4:1 Summary of Operational Impacts __________________________________________26 Table 5:1 Aims, objectives and progress on the Thriving Communities Programme ___________28 Table 6:1 Impact to Date_________________________________________________________33 Table 6:2 Summary of Future Impacts ______________________________________________33
Quod | Woodsmith Project | Economic Impact Report | March 2026
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‘The Woodsmith Project represents a unique asset for the UK that will drive growth, create high value jobs and generate large- scale exports, whilst helping the UK become a major global fertiliser producer.’
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1 Executive Summary
Introduction
1.1 This report reviews the economic impacts of Anglo American’s Woodsmith Project and concludes it remains critically important and nationally significant.
1.2 It sets out Quod’s up to date conclusions with respect to the scale and nature of the benefits of the Woodsmith Project, taking into account evidence from the construction works that have already been completed since 2017, demonstrating an excellent track record of local employment and substantial local supply chain expenditure. 1.3 It presents these benefits in the context of local, regional and national economic challenges and opportunities, including the national imperatives to improve productivity, attract international investment and boost growth in the North of England.
The UK’s largest mining project
1.4 Anglo American is currently developing what will become one of the world’s largest fertiliser producing mines (and the UK’s largest mine), located in North Yorkshire and Teesside. The Woodmsith Project represents a unique asset for the UK that will drive growth, create high value jobs and generate large-scale exports, whilst helping the UK become a major global fertiliser producer. 1.5 Setting a new benchmark for sensitive mine design, the Woodsmith Project benefits from a c.2 billion tonne multi-decade resource of polyhalite, a natural mineral fertiliser. The Project will help the UK become a major global fertiliser producer and leader in sustainable food production, one of the most pressing challenges facing the world today.
Scope and scale
1.6 The Project will involve the large-scale extraction and granulation of polyhalite, which is a naturally occurring mineral containing four of the six macro-nutrients that are essential for plant growth – potassium, sulphur, magnesium and calcium. The Project will include the construction of an underground mine, along with the necessary infrastructure both above and below ground required for transporting, processing and distributing polyhalite. This assessment is based on an annual extraction of 13 million tonnes per year (mtpa). 1.7 The key components of the Project are the Mine Infrastructure (Woodsmith Mine) near Whitby in North Yorkshire, a 37km underground Mineral Transport System (MTS) that will transport the mined ore to a Materials Handling Facility at Teesside and onto Port and Harbour Facilities for export.
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Boosting the economy on a nationally significant scale
1.8 By significantly increasing economic output, boosting and empowering regional success and skills development, increasing exports, driving productivity and reducing the trade deficit, the Project is exemplary in addressing the UK’s ambitions and challenges. 1.9 When operational, for every £100 of GVA generated across the North East and Yorkshire & the Humber regions, £1 of it will be generated directly by the Woodsmith Project. The scale of exports will be large enough to affect the UK balance of trade by up to 10% - hitting an estimated export value of £2.3 billion annually.
1.10 Current economic modelling is based on an annual output of 13 million tonnes of polyhalite.
1.11 Quod has worked with Anglo American to remodel its impacts based on refined assumptions about build out methodology and investment profile. The revised projections show an increase in economic benefit across the board. These projections relate to the remaining construction period from now until completion. For a quantification of the benefits that have already been accrued, and the combined benefits of past and future benefits, see Section 3 of this Report.
Remaining construction:
Over this period, the Woodsmith Project is expected to support an increased average construction workforce of 1,530 full time equivalent (FTE), with a peak of 2,650 jobs on-site. These works will also support 4,260 indirect and induced jobs every year on average (i.e. one-year jobs, per year). It is expected to generate a total GVA of £4.5 billion 1 . Operation: The Woodsmith Project will support 1,150 direct FTE operational employees. Full operation will also support 3,830 indirect and induced one-year jobs every year. It is expected to generate a total annual GVA of £2 billion (£1.7 billion direct, £300 million indirect and £43 million induced). The scale of exports is large enough to affect the UK balance of payments by up to 10% 2 hitting £2.3 billion annually at 13mpta output. 1.12 Creating over a thousand high-value direct jobs, and many more in the supply chain, could boost the employment rate and increase spending power to deliver indirect economic benefits.
1 Direct, indirect and induced GVA combined 2 Based on 2025 deficit
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Table 1:1 Summary of Past and Future Construction Impacts 2017 to date
Scale of impact
Peak Construction Employment
2,200
Direct Jobs (annual average)
1,220
Indirect and Induced Jobs (annual average one-year jobs)
3,110
Total Indirect and Induced FTEs 3
2,800
GVA (direct, indirect 4 )
£2.45 billion
Direct GVA within YH and NE
£1.94 billion
Future construction impacts from 2026
Scale of impact
Peak Construction Employment
2,650
Direct Jobs (annual average)
1,530
Indirect and Induced Jobs (annual average one-year jobs)
4,260
Total Indirect and Induced FTEs 5
2,840
Direct, Indirect and Induced GVA (over the construction period)
£4.5 billion
£1.7 billon 6
Direct GVA (over the construction period within YH and NE)
Employment multiplier (Type II)
3.78
GVA multiplier (Type II)
2.09
Table 1:2 Summary of Operational Impacts
Permanent
Scale of impact
Direct Jobs
1,150
Indirect and Induced Jobs (one-year jobs per year)
3,830
Direct GVA (per year)
£1.7 billion
Indirect GVA (per year)
£300 million
Induced GVA (per year)
£43 million
£2.3billion (up to 10% reduction)
Value of Exports (Effect on UK’s trade deficit 7 )
Employment multiplier (Type II)
4.33
GVA multiplier (Type II)
1.194
3 10 person years of employment – equivalent to 1 full time permanent job 4 Induced GVA has not been modelled for actual construction data 5 10 person years of employment – equivalent to 1 full time permanent job 6 Projecting 2017-2025 benchmarks forward 7 Based on 2025 deficit
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‘Since 2017 Woodsmith has exceeded our previous projections on the scale of positive economic impact’
Exceeding expectations
1.13 Construction of the Woodsmith Project began in 2017, since then, it has exceeded our previous projections on the scale of positive economic impact 8 , assessed in 2014 - most significantly local job creation and local supply chain expenditure.
1.14 Since construction started, data gathered annually has shown that between 61 and 76% of the Woodsmith workforce to date live within approximately one hour of the site they work at.
8 As set out in the 2014 Economic Impact Report produced for the original planning application
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1.15 Anglo American has also focused £34 million of social investment on supporting young local people, social economic development and local community and environmental projects. This includes Anglo American’s Thriving Communities Programme, planning commitments and the Woodsmith Foundation, which continues to support local people and community organisations. 1.16 In 2014, Quod projected that, “ the development would bring significant national benefits and contribute to the Government’s core economic objectives of increasing economic growth, rebalancing the economy, increasing exports, achieving Full Employment and reducing the deficit.” While so much of the global and UK economic and political context has changed over this period, the commitment of Anglo American to achieve these goals remains, and its track record so far has demonstrated the projected scale of impact is achievable.
Addressing regional challenges
1.17 The Project’s area of impact (where its supply chain and labour market effects will be) is extensive. This area around the Project is characterised by inequality – and in the less prosperous communities, unemployment, deprivation, low skill attainment and an ageing population remain the long term legacy of post-industrial decline. It includes large parts of Teesside, in particular Redcar and Cleveland Borough, and Scarborough Borough, two areas where there are significant pockets of extreme deprivation that are amongst the most deprived in the country.
1.18 York and its surrounds are generally prosperous – but the deprivation in the North East and communities along the coast is highly concentrated and persistent.
1.19 Even within the relatively prosperous Park boundaries, there are issues of an ageing population and out-migration of young people and a heavy reliance on sectors that are at risk of decline – such as agriculture and public services (including defence) – or offer a lot of part- time or seasonal work such as tourism. 1.20 In Redcar and Cleveland there are only 0.56 jobs per person, compared to an average of 0.74 across the North East, 0.82 in Yorkshire and the Humber and an average of 0.87 across England and Wales. While Scarborough Borough’s job density is relatively high (0.98), 1 in 5 jobs are in tourism related sectors, with associated seasonal and cyclical vulnerability and relatively low pay. The average resident of Middlesborough or Redcar earns between £4,000 and £5,000 less per year than the average for England and Wales. 1.21 The local population is ageing – most significantly in Scarborough Borough – and growing at much lower rate than the UK average (less than 2% for the coastal local authorities in the North East). 1.22 While a third of people across England and Wales have a degree level qualification or equivalent 9 , this is only 25% in Redcar and Cleveland and 28% within the travel to work area for the Woodsmith Project.
9 Level 4
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1.23 For all these reasons – which can be summed up as missed opportunities and untapped potential – the government is highly motivated to narrow the productivity gap between the north of England and other regions through investment and growth.
Narrowing the productivity gap
1.24 In January 2026, Rachel Reeves MP, Chancellor of the Exchequer, restated the importance of investment in the north of England:
Addressing the North’s long-standing productivity gap is a crucial part of the government’s national plan for growth. Narrowing the gap to the North’s potential can generate higher, more broad-based national growth, while the region’s existing sectoral strengths offer opportunities for business investment and employment, supporting living standards across the region 1 .
1.25 Anglo American is exemplary of what government – local and national – wants to achieve. International investment in UK industry, with an extensive network of suppliers, including UK born firms - at the cutting edge of their industries in engineering, construction, civils, energy, and advanced manufacturing and professional services. The spin out effects are enormous – from employment and training of local workforce, to supporting growth in sectors that will apply their experience and capacity to projects elsewhere in the north and UK wide. The skills acquired on site are very similar to those that will be required to deliver the projects on which UKPLC will rely – particularly nuclear and renewable energy and major infrastructure. 1.26 Anglo American has weathered economic storms; while continuing to review the opportunities for engineering enhancements to ensure the safe and efficient operation of the project for the long-term. The macro-economic story is plain – it ticks every box:
Attracting International Investment in UK industry
Driving Growth in Agri-tech and UK’s global fertiliser production status High export potential High productivity industry – supporting a high productivity supply chain Local jobs at all skill levels Transferable construction and engineering skills that will support decades of critical national infrastructure investment Driving growth, economic diversification and social and economic value in the north of England.
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The need for polyhalite
1.27 Global food security is one of the most important challenges facing the world today. The world needs to feed another 1.5 billion people by 2050 while reducing the impact of food production on the environment. The global food system is responsible for around 30% of total greenhouse gas emissions and is the primary driver of biodiversity loss and soil degradation. Agriculture must transition to practices that increase food production and minimise environmental harm. 1.28 The UK has the world’s largest polyhalite deposit and can be part of the solution. Polyhalite is a naturally occurring mineral which is unique in containing four of the six key nutrients required for healthy plant growth - sulphur, potassium, magnesium and calcium – and is certified for organic use. Natural mineral fertilisers like polyhalite will have a significant role to play as they increase yields while reducing environmental harm by limiting emissions and supporting healthier, more resilient soils.
Structure of this report
1.29 This report is structured as follows:
Local context: setting the project in geographical, community and political context Construction Impacts: including those benefits that have already been generated between construction start and today – and looking forward to full operation. Operational Impacts: projecting the type and scale of operational benefits up to an annual output of 13 mtpa. Delivering local and community benefits. Conclusion: restating the quantifiable outcomes and commitments for the future.
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2 Economic and Political Context
2.1 This section sets the Project in its economic and political context, demonstrating that it is uniquely (both in scale and nature) aligned with the government aspirations for the North of England, and as a means of challenging entrenched issues facing these communities.
Scope and scale
2.2 The project spans complex geographic boundaries. At the regional level, the North East and Yorkshire and the Humber Regions. At the Combined Authority level, York and North Yorkshire Combined Authority and Tees Valley Combined Authority. 2.3 Scarborough is no longer a Borough Council, since becoming part of the single unitary authority of North Yorkshire Council in 2023, but the geographic area of Scarborough Borough is still relevant for local statistics and as a community – and is therefore still referred to.
Table 2:1 Woodsmith Project Geographies
Geographic level
Relevant boundary
Regional
North East and Yorkshire and the Humber
North York Moors National Park (NYMNP)
North York Moors National Park
Commuting Zones
Within 1 hour and 1.5 hours of the Project sites
Middlesbrough and Stockton TTWA, Whitby TTWA, Scarborough TTWA, Malton TTWA York and North Yorkshire Combined Authority (YNYCA) and Tees Valley Combined Authority (TVCA) Scarborough 10 , Redcar & Cleveland Borough Council (RCBC)
Travel to Work Area (TTWA)
Combined Authorities
Local Communities
10 Scarborough Borough Council has been used in this report for legacy datasets for comparison purposes. For administrative purposes it now forms part of North Yorkshire Council and the York and North Yorkshire Combined Authority.
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Regional and local authority context showing in the lower plan, the historical borough boundaries of Scarborough, now part of the YNYCA
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Complex economic challenges
2.4 The political and economic geography of the Woodsmith Project is complex – the project itself straddles two regions, four travel to work areas, the National Park and two combined authorities. The impacts of the project – particularly employees and supply chain – stretch farther still. Investment, supply chain and productivity gains are nationally significant. 2.5 Despite this complexity, and locally specific characteristics, these areas face many similar challenges, with policy at all levels having similar objectives. Local growth strategies explicitly reference the Woodsmith Project and its contribution to objectives. National growth strategies emphasis the critical importance of investment in the north of England to realise the UK’s productivity gains and meet the economic headwinds of the future.
Productivity is lower and slower growing in the north ONS, 2026, Regional GVA in current prices 2015- 2023 £s Million
600,000
London
500,000
South East
400,000
North West
East
300,000
South West
West Midlands
200,000
Yorkshire and The Humber East Midlands
100,000
North East
0
2.6 Productivity – which is lower and slower growing in the north – is, as it has been before – highlighted as a major stumbling block for the further growth of the North. Low productivity (which means the amount of value added by each worker, or all workers cumulatively) traps employees in low wages and dampens investment potential.
2.7 The picture of local productivity is mixed - despite a challenging regional context, GVA growth in York and North Yorkshire (52%) was higher than the national average (51%) (ONS, 2025).
2.8 Growth in the NYMNP was lower than both (41%) but is relatively high for a rural area – and the Woodsmith Project is a critical component of that.
2.9 GVA growth in the Tees Valley has lagged far behind the average for England over the decade 2013 to 2023 with Redcar and Cleveland struggling in particular.
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There is a large divergence in growth across the north ONS, 2026, % real GVA growth 2013-2023
2.10 The area also has significant variation in general prosperity and community resilience – for example, York and its surrounds are generally prosperous – but the deprivation in the North East and along the coast remains. 2.11 There are still large pockets of deprivation in Stockton-on-Tees, Redcar, Whitby, and in Scarborough. These neighborhoods remain among the most deprived 11 in England and Wales – however the overall picture for the most deprived local areas (Redcar and Cleveland and Middlesborough) is of relative improvement compared to their position in 2014. Redcar which was the 12 th most deprived Local Authority at the time of the 2014 assessment, is now ranked 37 th most deprived (based on average score across the indices – IMD2025 12 ). This is an improvement but deprivation along the coast is still significant, concentrated and persistent.
60%
50%
England
40%
30%
20%
10%
0%
2.12 Seasonal employment affected by agriculture and tourism, and the legacy of industrial decline, still shape the local economy and affect its resilience and the prospects and wellbeing of residents. 2.13 Within the relatively prosperous National Park boundaries, there are issues of an ageing population and out-migration of young people and a heavy reliance on sectors that are at risk of decline – such as agriculture and public services (including defence) – or offer a lot of part- time or seasonal work such as tourism.
11 The Index of Multiple Deprivation measures relative deprivation of neighbourhoods in England, considers a range of indicators including employment, crime, health and access to services. The Woodmsith Project is set in the context of both the most and least deprived neighbourhoods in England in 2025. 12 Note that a change in relative deprivation does not prove a change in absolute deprivation using this measure.
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2.14 In Redcar and Cleveland there are only 0.56 jobs per person, compared to an average of 0.74 across the North East, 0.82 in Yorkshire and the Humber and an average of 0.87 across England and Wales. Job density within the former Scarborough administrative area (including Scarborough and Whitby) is relatively high (0.98), 1 in 5 jobs are in tourism related sectors, with associated seasonal and cyclical vulnerability and relatively low pay. The average resident of Middlesborough or Redcar earns between £4,000 and £5,000 less per year than the average for England and Wales.
A mixed picture on deprivation with high concentrations in Redcar and Stockton-on-Tees, Whitby and Scarborough
2.15 The local population is ageing – most significantly in Scarborough Borough – and growing at much lower rate than the UK average (less than 2% for the coastal local authorities in the North East). 2.16 While a third of people across England and Wales have a degree level qualification or equivalent 13 , this is only 25% in Redcar and Cleveland and 28% within the travel to work area for the Woodsmith Project.
2.17 These are significant challenges – but also point to the untapped potential of the northern economies to drive the future of UK’s growth.
13 Level 4
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2.18 Positively, employment in construction in the National Park has grown by 33% over the period 2015-2023 and the majority of this growth is likely to be from the Project 14 . There are 780 mining, quarrying and utilities jobs within the NYMNP (LSOA) and 4,590 in the WMCZ (ONS, 2023) – again many of these will be on the site at the nearby Boulby mine.
Policy response
2.19 Successive governments at a local, regional and national level have sought to tackle these economic challenges and improve lives for communities in the North – the importance of that is reiterated in all current relevant policy.
The North powered Britain’s past; it can lead the country’s future.
2.20 In January 2026, government published its Northern Growth Strategy policy paper – restating its commitment to support growth in the north of England most urgently through substantial transport investment but also through business investment, innovation and skills and human capital. The policy paper roots its ambitions firmly in the rich industrial heritage of the north – which powered Britain’s past; and, with the right long-term plan delivered in partnership, can lead the country’s future.
Great weight should be given to the benefits of mineral extraction, including to the economy
2.21 In 2024 the current Government won a landslide 174 seat victory on a manifesto consisting of five key missions. The number one mission being to kickstart economic growth: to secure the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country making everyone, not just a few, better off . 2.22 To reflect this priority, the National Planning Policy Framework (NPPF) 15 was updated in February 2025 (with further changes shared in draft for consultation in December 2025). Key policies relating to the Woodsmith Project are: The three overarching objectives: economic, social and environmental. The need to build a strong and effective economy and that significant weight should be placed on the need to support economic growth and productivity (chapter 7). That great weight should be given to the benefits of mineral extraction, including to the economy (chapter 11). Potash and Polyhalite are identified as minerals which are necessary to meet society’s needs, and are therefore of local and national importance (Annex 2: Glossary). 2.23 The Modern Industrial Strategy 16 was launched in November 2025, outlining the Government’s plan for maximising opportunities and creating favourable conditions for growth in the UK and
14 Based on evidence gathered by Quod and presented in this report, it is highly likely that the majority of this growth is on the Project, but the ONS data does not present the granularity to confirm the net position on a site by site basis. 15 Ministry of Housing, Communities & Local Government (MHCLG). (2025). National Planning Policy Framework. 16 Department for Business and Trade. (2025). The UK's Modern Industrial Strategy.
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its high potential sectors. This strategy recommends Agri-Tech is prioritised for investment as a frontier manufacturing industry with considerable growth potential.
2.24 The Woodsmith Project’s benefits cut across Agri-Tech, advanced manufacturing and critical minerals 17 and delivers the type of growth the strategy sets out to achieve:
It is focused on a unique UK asset
Attracts significant international investment
Supports regional growth
Creates high-value jobs
Generates tangible benefits for communities
Supports the net zero transition.
A transformational economic opportunity at a local and regional level
2.25 The York and North Yorkshire Combined Authority Economic Framework 18 sets out the area’s economic growth plans, identifying three key ambitions:
Transition to Carbon Negative.
Deliver Inclusive Economic Growth.
Ensure Opportunities for all. 2.26 The YNYCA Local Growth Plan 19 sets out a 10-year plan for inclusive economic growth across the area and details how growth in York and North Yorkshire will support national ambitions including playing a key role in food and farming innovation. 2.27 The Local Growth Plan highlights the Woodsmith Project as a case study, highlighting that it will support the subregion to become a global leader in sustainable fertiliser innovation and create over 1,000 high value jobs. 2.28 The local Minerals and Waste Joint Plan 20 sets out where and when minerals and waste development may take place across the subregion until 2030. It states that the potential economic benefits from the Woodsmith Project represent a “transformational economic opportunity at a regional and local level”.
2.29 The Redcar and Cleveland Local Plan (May 2018) 21 sets out the development strategy to 2032, emphasising the need to stimulate economic growth, generating jobs and prosperity.
17 Polyhalite is not yet classified as a critical mineral but meets the core criteria and is expected to be classified as such in the future 18 York and North Yorkshire Combined Authority. (2024) York and North Yorkshire Economic Framework. 19 York and North Yorkshire Combined Authority. (2025). York and North Yorkshire Local Growth Plan. 20 North Yorkshire County Council, City of York Council, and North York Moors National Park Authority Minerals and Waste Joint Plan 2015-2030 (2022) 21 Redcar & Cleveland Borough Council. (2018). Redcar & Cleveland Local Plan Adopted May 2018.
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2.30 Policy LS4: South Tees Spatial Strategy sets out objectives relating to the economy, connectivity, and the environment in the area. Policy objective “m.” confirms the council and its partners will aim to support development related to the ‘North Yorkshire Polyhalite Project’. 2.31 The Redcar and Cleveland Growth Strategy 22 aims to strengthen and diversify the economy, emphasising developing the workforce and the economy, as well as committing to develop the economic infrastructure and improve the quality of place. 2.32 The Strategy identifies key employment sector specialisms, the second largest is the mining of chemical and fertiliser minerals. The project to extract polyhalite is seen as a key economic asset within the borough strategy. 2.33 The Scarborough Local Plan 23 which was drafted originally to guide the development of the area until 2032 (prior to the merger into the unitary authority) highlighted the importance of the Woodsmith Project, citing that it had potential to deliver well over 500 jobs for Scarborough residents as well as having potential to deliver indirect and induced employment benefit through supply chain industries and support services. 2.34 North York Moors National Park Authority Local Plan (July 2020) 24 has three sets of objectives. These fall under their “first purpose principles” and relate to the protection of the special qualities of the National Park “that visitors and residents enjoy 25 ”. The “second purpose principles” relate to the use of the park for tourism and recreation. The Economic and Social Duty relates the statutory duty the authority has to foster economic and social wellbeing and support proposals that “should deliver economic benefits to the local communities that host them, in line with the duty to foster the economic and social wellbeing of local communities” 26 . The Park Authority is mindful to emphasise that protection of its first purpose principles must be its priority. In considering proposals for “major development”, such as the Woodsmith Project, they must carefully weigh up the impacts of development against evidence of national need and evidence that the positive impacts of the development are genuinely “exceptional. 27 ” 2.35 In the case of demonstrating ‘national need’ this may be the need for the product of the development, for example, the mineral in the case of a mining proposal which cannot be met elsewhere, the need for the wider national economic benefits that would flow from the development, or the need for a nationally significant piece of infrastructure or facility that cannot be accommodated elsewhere and which provides a long-term benefit to the nation. Need generally will be considered by the Authority in assessing proposals but greater weight will be given to a national need for a particular product or function that requires a location within the National Park as the need cannot be met elsewhere.
22 Redcar & Cleveland Borough Council . (2016). Redcar & Cleveland Growth Strategy. 23 Scarborough Borough Council. (2017). Scarborough Borough Local Plan.
24 North York Moors National Park Authority. (2020). North York Moors National Park Authority Local Plan. 25 North York Moors National Park Authority. (2020). North York Moors National Park Authority Local Plan. Para 5.4 26 North York Moors National Park Authority. (2020). North York Moors National Park Authority Local Plan. Para 5.4 (10) 27 North York Moors National Park Authority. (2020). North York Moors National Park Authority Local Plan. Para 3.35
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This test has already been met for the Woodsmith Project, through the rigorous technical, consultation and assessment exercise undertaken in 2014 culminating in permission being granted in 2015. The resolution approved by Planning Committee members concluded that:
This decision is based on Members concluding:
a) that the potential economic benefits from the proposal represent a transformational opportunity for the local and regional economy;
b) that the likelihood of establishing a global market for polyhalite fertiliser is such that Phase 2 production levels will be achievable, resulting in economic benefits that are significant at a national level; c) that the innovative nature of the mine design and associated landscaping result in an acceptable reduction in the long term environmental impacts of the development;
d) that there was no realistic scope for locating the development elsewhere outside the designated area.
e) Members attach greater weight to these benefits than the environmental impacts during the construction period and the long term harm to the special qualities of the National Park at the minehead site and consider that:
f) the proposal represents exceptional economic circumstances which outweighs the extent of the conflict with the Development Plan;
g) therefore, the public interest lies in approving the application.
2.36 The proposed amendments to the Woodsmith Project reinforce alignment with the original reasons for approval, while the additional technical and engineering work that has taken place in the intervening decade demonstrate that the effects of the Project on the local economy are even larger than Quod previously projected.
Strong alignment with social and economic objectives at every level of government
2.37 The Project has strong alignment with social and economic objectives at every level of government:
Attracting International Investment in UK industry
Driving Growth in Agri-tech and UK’s global fertiliser production status
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High export potential
High productivity industry – supporting a high productivity supply chain Local jobs at all skill levels Transferable construction and engineering skills that will support decades of critical national infrastructure investment Driving growth, economic diversification and social and economic value in the north of England. 2.38 The following sections set this out in more detail with respect to construction, operation and community investment.
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3 Construction Impacts
The Project has exceeded Quod’s initial projections on local benefit during construction
3.1 In 2014, Quod made projections on behalf of Sirius Minerals (the then applicant for the Woodsmith Project). Since that date Quod has been working with Sirius and then Anglo American to track the progress of the project and monitor its impact on the local economy.
3.2 The Project has exceeded Quod’s projections on local benefit.
3.3 Anglo American has consistently made a commitment to the local, regional and national economies and put staff time and investment into capturing and maximising local benefits.
3.4 The success of the project to date has been underpinned by a proactive and collaborative approach. Anglo American is committed to delivering lasting, positive contributions across the Project’s impact area in the construction phase, and both during and beyond the life of its operation.
3.5 Anglo American is committed to:
Developing skills and employing local people on the Woodsmith Project Engaging local suppliers and providing supply chain opportunities Delivering social benefits more broadly through its Thriving Communities Programme focused on livelihoods, education, health and neighbourhoods Supporting the work of the Woodsmith Foundation.
Success built on partnership
3.6 Anglo American embeds itself in the community by participating in a wide range of local networks, advisory groups and boards - sharing its knowledge and skills, in addition to its social investment outlined in Section 5. Examples include Town Deal Boards, education, skills and careers partnerships, business networks, sector development partnerships and community place-based groups. 3.7 Stakeholders involved in this process have included the Mayoral Combined Authorities of York and North Yorkshire and Tees Valley, local authorities including North Yorkshire Council and Redcar and Cleveland Borough Council, parish and town councils, education institutions, business networks, and a wide range of community-based groups and organisations from the voluntary sector. 3.8 In terms of connecting people and businesses to opportunities at the Woodsmith Project, these activities have included training programmes, Woodsmith specific jobs fairs and supply chain events, and working together on the Social Response Plan to support people impacted by the slowdown.
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3.9 The Thriving Communities Programme, detailed in Section 5, provides examples of how Anglo American works collaboratively to support social and economic development more broadly.
One of the largest employers in the area
3.10 There are currently 1,000 people working on the Woodsmith Project (reducing from the peak of c.2,200 before the temporary slowdown i which was announced in April 2024).
3.11 This project remains one of the largest employers in the area, with 76% of the current Woodsmith workforce from the local area (a one-hour commute). This is significantly higher than 35% estimated prior to construction (this estimate was driven by the requirement for specific expertise).
Since construction started in 2017, the Woodsmith Project has generated an additional £1.94 billion to the regional economy
3.12 In 2024, total investment ramped up for the fourth year in a row to £692 million – rising by £1 million compared to 2023 and doubling since 2020. In 2025, works slowed down but investment still hit £266 million, with £164 million of GVA generated. 3.13 Since construction started in 2017, the Woodsmith Project has generated total GVA of £2.45 billion, including an additional £1.94 billion to the economy of Yorkshire and the North-East (based on direct and first-round indirect GVA).
3.14 In 2025, Anglo American and its contractors purchased £69 million worth of goods and services locally ii , with the figure totalling £452 million since 2022.
Consistently above projected levels of local employment
3.15 Throughout the construction period local employment has been consistently significantly above this level, from 61% to its current level of 76%, and is expected to remain within this range throughout construction. This has been helped by ensuring that opportunities have been targeted at local people through the local partnership approach outlined above.
3.16 Anglo American has recruited 46 apprentices to date (committing to at least 50 in total). These have come through two programmes:
An Advanced Engineering Apprenticeship programme launched in 2018, covering mechanical, electrical and instrumentation engineering disciplines. The Level-3 apprenticeship provided a suite of qualifications, including progression onto an HNC and has provided opportunities for 28 young people from the local area. An Anglo American Cyber Security Apprentice Centre of Excellence, based in Scarborough was established in 2022. Providing a two-year, Level 4 apprenticeship, this has trained a total of 18 apprentices, with the provision gaining an Outstanding rating from Ofsted.
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Total economic impact to date
Table 3:1 Summary of Total Economic Impacts 2017-2025
Regional Within Yorkshire and Humber and the North East
Total
Impact
£3.680 billion iii
Investment
GVA (direct and indirect 28 )
£2.45 billion
£1.94 billion
Indirect and induced jobs (FTE 29 )
2,800 Jobs iv
Indirect and Induced Jobs (annual average one-year jobs)
3,110
Indirect and Induced Jobs (total one-year jobs)
28,000
61-76% Within one hour commute
Peak Construction Employment
Peak of 2,200
Future construction employment
3.17 The construction period going forward will support a further 10,230 direct one-year jobs in construction. By accounting convention, the number of “one-year construction jobs” is divided by ten to provide a full-time equivalent. However, that approach for direct employment would not give a meaningful representation of the number of people who would work on-site at any one time or over the construction period because of the scale and nature of the project (FTE jobs being most useful as metric for indirect and induced jobs). 3.18 Therefore, the most relevant numbers in this case are the peak number of employees on-site and the average over the course of the construction. Some individuals would be on-site for a short period – weeks or months – whilst others might be on-site for the majority of the construction period, such as shaft sinkers. There would be an average of 1,530 jobs each year over and peak of 2,650.
Future Indirect impacts
3.19 As well as the direct benefits of the Project, there will be multiplier effects through construction expenditure by Anglo American directly and by its workers.
3.20 Spending by Anglo American on the materials and services required for construction will increase employment across the supply chain. That will, in turn, support the creation of new jobs at suppliers and those new jobs will in turn mean more wages and more spending by those workers. These are called indirect impacts.
28 Induced GVA has not been modelled for actual construction data 29 10 year FTE – i.e. the equivalent of a permanent full time equivalent job
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3.21 Similarly, the additional workers on the Woodsmith Project will spend some of their increase in income and thereby increase employment in local shops and services. In some cases workers will move directly from unemployment to working on the Project. In other cases they will move from existing jobs, thereby creating vacancies that other residents can fill. The overall result is that more people will be in employment and there will be an overall increase in wages and in spending. The scale of the Woodsmith Project means that these impacts are far reaching and significant. This spending will then support more employment and economic activity at other local businesses. These are induced impacts. 3.22 Set against multiplier effects are deadweight and displacement which can reduce net benefits, although during the construction phase both of these are zero. Without the Project, there would be no construction employment taking place on the site so all the construction employment is additional to what would otherwise take place on-site in the absence of the proposed scheme. Similarly, the construction of this Project is unique and location specific, and is therefore not displacing the construction of a mine elsewhere - so again all the construction employment is additional to what would otherwise take place elsewhere in the economy.
3.23 Leakage has not been directly assessed as Anglo American is not undertaking a Green Book Appraisal. Leakage is implicitly assessed when estimating local impacts.
3.24 Indirect employment has been estimated using a breakdown of construction spending profiles provided by Anglo American and its contractors - and drawing on the ONS Input- Output tables. These show the ratios of GVA to expenditure in specific sectors which Quod has profiled according to the spending profile. 3.25 Quod has applied typical turnover per worker figures (e.g. approximately £262,000 for manufacturing and just over £170,000 for construction; and £150,000 transport services) to estimate how many jobs this additional supply chain spending would support, i.e. £262,000 of purchases from the manufacturing sector will support one job in that sector. Therefore, over the course of the construction, jobs will be supported in the wider supply chain, an impact which is most accurately represented in “person years of employment” – or number of one- year jobs. 10 person years of employment equates to a full time equivalent permanent job. Indirect and induced jobs can therefore can be measured in terms of person years of employment i.e. the number of one-year jobs for ease of comparison and benchmarking. 3.26 Induced employment has been estimated using forecasts of wages to calculate how much additional consumer spending might be supported after accounting for tax, national insurance, pensions and savings and loss of benefits. This has then been divided by an average retail and leisure spend per worker to calculate the induced employment. This has also been equated to a 10 year full time equivalent.
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Future GVA Impacts
3.27 The Woodsmith Project will directly boost the economic output of the area and the country as a whole. At a national level, this is measured through Gross Domestic Product (GDP). At a sub-national level it is measured using “Gross Value Added” (GVA) which is the difference between the value of a company’s or industry’s output and the cost of the non-labour inputs it uses. 3.28 For indirect impacts, GVA is calculated using the ONS Input-Output tables. These provide data on the proportion of sales value for any given industry that is accounted for by GVA. These typically range between 30% to 50% across different industries but can be higher or lower in outlier cases. Anglo American has estimated the spending that will go to different industries and, using the Input Output tables, it is possible to say on average how much of that spending represents GVA. 3.29 For induced impacts Quod has used the average GVA per worker for Yorkshire and the Humber (YH) and applied that to the estimate of induced jobs. In YH GVA per worker is approximately £57,600 so one induced job equates to £57,600 of GVA.
3.30 Direct GVA is estimated at £2.13 billion for the remaining construction activity; indirect is £2.17 billion and induced is £161 million (totalling £4.5 billion).
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Table 3:2 Summary of Construction Impacts
Scale of impact
Peak Construction Employment
2,200
Direct Jobs (annual average)
1,220
2017 to date
Total Indirect and Induced FTEs 30
2,800
GVA (direct, indirect 31 )
£2.45 billion
Direct GVA within YH and NE
£1.94 billion
Peak Construction Employment
2,650
Indirect and Induced Jobs (annual average one-year jobs)
4,260
Future to completion
Total Indirect and Induced FTEs 32
2,840
GVA (direct, indirect)
£4.30 billion
GVA (direct, indirect and induced)
£4.50 billion
Direct GVA within YH and NE
£3.44 billion
Peak Construction Employment
2,650
Direct Jobs (Annual Average)
1,350
Indirect and Induced Jobs (annual average one-year jobs)
Total over construction period
3,600
Indirect and Induced Jobs Total FTEs
5,640
GVA (direct, indirect)
£6.75 billion
Direct GVA within YH and NE 33
£5.38 billion
30 10 person years of employment – equivalent to 1 full time permanent job 31 Note that induced GVA has not been modelled for past delivery 32 10 person years of employment – equivalent to 1 full time permanent job 33 Based on projections of past supply chain trends
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