[OFFICIAL]
4 Operational Impacts
4.1 The Woodsmith Project will generate ongoing economic benefits including new investment, employment and exports when the Project is operational.
4.2 The scale of these is so substantial that the benefits will significantly boost the local, regional and national economies, increase productivity and reduce the trade deficit, thereby contributing directly to achieving the Government’s key economic policies.
Operational Employment
4.3 At an operational output of 13mpta, the Woodsmith Project will employ 1,150 people.
4.4 As with the construction phase, there will be wider multiplier benefits during the operational phase as Anglo American spends money through its supply chain that supports jobs at other companies - and as its employees spend their wages in the local economy. 4.5 Anglo American has estimated the total labour cost required to operate the Project and this has factored into the projections of indirect employment – i.e. jobs supported through local salaries. 4.6 Unlike in the construction phase there may be some, limited, deadweight and displacement. There could be some product market displacement that could affect other UK producers of potash. In the global market this would not be significant – Anglo American’s production would be a small part of a very large global market. 4.7 To estimate the positive multiplier effects, Quod has reviewed Anglo American’s spending plans, in the same way as for construction, focusing on labour market expenditure and the expenditure on goods and services in each sector and the economic characteristics of that sector.
4.8 Anglo American’s employees (as well as those additional ones in the supply chain) will also have more money to spend, much of which will be in the commuting zone.
4.9 Assuming conservatively that the 3,090 indirect employees earn the average wage for Yorkshire and Humber of just over £31,000, this means just under £100m in wages. This is not all net additional income so an allowance has been made for taxes, savings, and loss of benefits before dividing that by the average retail and leisure spend required to support one job.
4.10 The multiplier effects of this project are projected to be very high – much higher than most other UK economic activity of the same scale of investment.
4.11 This is in line with empirical evidence from elsewhere which suggests that the multipliers for mines are relatively high because they are capital intensive, have relatively well-paid workers and have high levels of added value, for example. There would be a wide range of jobs created
Quod | Woodsmith Project | Economic Impact Report | March 2026
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