Sirius to start exploratory drilling in potash study

Sirius has secured a massive mineral rights portfolio for 631 sq km of land between Whitby and Scarborough with plans to open a new potash mine and create up to 5,000 jobs.

The concept study will look at how the mine could operate and will examine the technical processes.

Sirius is about to start drilling two temporary boreholes in the North York Moors National Park. Once it gets an idea of what the potash seam looks like under the ground it can plan where to site the mine.

Sirius said that the concept study represents a key stage in the development of the York Potash project.

During this phase the various options and development alternatives for the project will be analysed and tested.

The group is keen to ensure the latest breakthroughs in mine development and sustainable design are used in the project. It expects this to be completed by the end of 2011.

In addition, the group has appointed a number of consultants to help with the development of its proposals.

Ercosplan, one of the world’s leading potash geological and engineering consulting firms, has been appointed to lead the concept study work to establish how the mine could operate and the processes involved.

Ercosplan has extensive expertise in the German potash industry. Possible mine locations will be developed once the results of the exploration programme are better understood.

Sirius will also conduct work on proposals to transport the mined ore via underground pipelines and it has engaged the services of dedicated pipeline expert Murphy Pipelines, which has experience in the construction of major pipeline systems around the world, particularly in the UK.

Chris Fraser, managing director and chief executive of Sirius, said: “These appointments are all about trying to move the technical work forward as quickly as possible so that we can ultimately talk in more detail to local people about what the project might look like and how it might work.

“We are totally committed to bringing these proposals forward in a sensitive and correct manner and believe that the skilled jobs and investment involved in the project could provide a lasting benefit to the local area.”

Sirius was given the go-ahead last month by the North York Moors National Park Authority to carry out exploratory work to establish the extent of the mineral deposits.

The exploratory drilling is due to be carried out during the height of the summer season, prompting concerns from tourism businesses that trade will be affected.

But senior officers at the national park authority maintained that there was “no factual evidence” that the drilling would have an adverse impact on the tourism sector.

The authority’s planning committee approved applications for temporary drilling rigs more than 100ft high to be put on two sites near the villages of Ugglebarnby and Hawsker.

Mr Fraser stressed that every effort would be made to ensure local communities are kept informed about the drilling work.

He added: “The project is of national importance and if delivered in the right way could be a real benefit to the local area.

“We will work as quickly as we can to complete this phase and draw up detailed proposals for the project.”

The temporary drilling near Ugglebarnby and Hawsker is expected to take up to eight weeks to complete.

A spokesman for Sirius stressed that the sites would be restored to their original condition after the work is finished.

The exploratory work will extract sample cores of the mineral underground to confirm the extent of the potash, a mineral that is an essential component of fertiliser, before detailed proposals for the actual mine are developed.

Up to 10 applications for temporary drilling rigs in the national park are expected to be submitted before a full planning application for the potash mine is announced towards the end of next year.

However, residents fear a major drilling operation in the national park will destroy one of the country’s finest landscapes.

Concerns have also been voiced about the amount of traffic which would be generated if the potash mine were to become a reality.

Senior planning officials have maintained that the proposals for the mine, the biggest development in the national park’s history, will be “rigorously examined” before any decision is taken.

A vital ingredient

About 90 per cent of the potash produced in the UK is used for the manufacture of fertilisers.

It is widely used by farmers to maintain good crop yields and strong harvests at a time of increased global food demand and rising food prices.

The global supply of potash is currently restricted as it is subject to a high degree of inefficiency due to the ageing infrastructure that exists around the world.

The global potash market is effectively controlled by eight firms accounting for 83 per cent of global production, most from ageing mines built during the 1960s and 1970s.

World food prices reached an all-time high during 2010, according to the United Nations.