Sirius drops plans for centre of excellence

It is hoped the proposed potash mine, which is expected to cost as much as £2bn to build, will bring a massive employment boost to the Yorkshire coast by creating up to 5,000 jobs. But opponents have voiced fears that a major mining operation would destroy one of the country’s finest landscapes.

Exploratory drilling work is continuing but initial test results have found one of the world’s most extensive deposits of potash.

A full planning application for the mine is due to be submitted to the North York Moors National Park Authority later this year.

Sirius Minerals today revealed that it had decided to not pursue the offer of an RGF Grant of £2.8m from the Department of Innovation and Skills for the creation of the Sirius Global Centre of Excellence in Applied Innovation in Geoscience (SCI-AG).

In a statement, the company said: “The York Potash Project has significantly advanced since the application for the RGF Grant was made in July 2011. The board has decided that continued focus on the accelerated development of the York Potash Project is higher priority than creation of the SCI-AG in the form envisaged in July 2011.

“The company is currently working with its advisers to further analyse the UK Research and Development tax incentive system to determine potential quantum of claims for activities undertaken to develop the York Potash Project.

“From initial analysis performed, it appears the potential benefits to the company from the R&D system are greater than the RGF Grant and under certain scenarios the company would not be able to benefit from both.”

The company believes the advancement of the required skills can be better achieved outside the commitments of the RGF Grant for SCI-AG.

For example, Scarborough Council has submitted its own RGF application for around £15m to prepare local people and businesses to take advantage of opportunities that will be created through the York Potash Project, as well as other developments in the area including the offshore wind proposals.

The statement added: “If the bid is successful, the company may benefit from elements of the training programme which would be targeted at developing engineering and construction skills through apprenticeships, graduates, adults with transferable skills and employees for potential supply chain companies.”

Chris Fraser, the managing director and chief executive of Sirius said: “The company would like to thank BiS and their staff who helped Sirius work through the details of our application.

“The rapid evolution and development of the York Potash Project has led us to believe we will create greater shareholder value focusing on our singular goal of achieving production from York Potash as soon as possible.

“The company remains committed to pursuing innovation and skills and will work closely with a range of external bodies to achieve these aims.”