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Revised Plans Published For Potash Mine Near Whitby

Revised Plans Published For Potash Mine Near Whitby

Published by Karen Liu at 7:27am 11th November 2019.

Sirius Minerals has published a revised two phase plan for the development of the potash mine near Whitby.

It follows the announcement of a Strategic Review and construction slowdown in September .

RELATED STORIES: Owners of Potash Mine Near Whitby 'Committed' To Delivering Project

The revised two phase plan states that the company will now seek to raise an initial $600m by the end of March 2020 to fund the construction of the mineshafts and first section of tunnel only.

The remaining infrastructure (the rest of the tunnel, and processing / shipping facilities at Teesside) will be deferred for between 12 and 24 months, and financed separately (up to $2.5bn).

The company believes this approach will reduce costs and mitigate financing risk.

Sirius Minerals is already in discussions with potential strategic partners and debt investors to raise the $600m required for the initial scope and will update the market when appropriate.

Chris Fraser, Managing Director and CEO of Sirius, said:

Our focus during the first phase of the strategic review has been to reassess the best ways to unlock the value of our project for our shareholders, our community, the UK, and our customers all around the world.

Our analysis has identified a two-stage development plan that enables us to achieve the key de-risking milestone of first polyhalite, when the service shaft reaches the polyhalite ore body, with an upfront capital requirement of ~$600 million.

The additional works required to reach an installed and ramped up production capacity of 10 Mtpa contemplates up to US$2.5 billion of capital expenditure.

We are in discussions with potential strategic partners and debt investors with the aim of securing the best route to finance our revised initial scope of work and will update the market and our stakeholders on the progress of those when appropriate.

The value of Sirius is unlocked by reaching production and delivering POLY4 to our customers around the world.

This approach allows us to achieve that with less upfront capital while retaining the significant return opportunity it presents for our shareholders and stakeholders.

I would like to thank our employees, contractors and partners for their continued focus and commitment, and recognise that the progress achieved on the ground in recent months remains a source of huge inspiration for the whole team.”

You can read the full revised plan here: Strategic Review Progress Update 

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