Whitby potash mine ‘could be live by 2016’

The company said the news will reduce the project risk for investors and increases the likelihood of the mine employing 1,000 people directly and thousands more indirectly.

The company’s engineering team said the mine can be constructed at least three months faster than previously thought, minimising the impact of the project’s construction.

Sirius also announced the results of a concept study which confirms the viability of producing fertilisers using polyhalite, the potash ore targeted by the project, which is a unique source of potassium, sulphur, magnesium and calcium.

These four minerals will ne added to nitrogen and phosphorous to create fertilisers that contain all six nutrients that plants need for growth.

Chris Fraser, managing director and CEO of York Potash’s parent company Sirius Minerals said: “We have the opportunity to deliver polyhalite without having to build a very expensive processing plant.”

Previously Sirius thought it would have to split the polyhalite up into its four constituents - potassium, sulphur, magnesium and calcium - before selling it but this is no longer necessary.

“We can sell polyhalite as it is,” said Mr Fraser.

The opening date has been brought forward by three months following engineering studies that show construction, particularly of the shaft, will be easier than thought.

“This study shows that we can significantly reduce the capital costs of the mine and construct the project quicker than we previously anticipated – speeding up the job creation and all the associated benefits of the project for the region,” said Mr Fraser.

“This is an important milestone for the York Potash Project because it outlines how, by maximising the unique benefits of polyhalite, we can become a world leader in the fertiliser industry, helping to provide a solution to the growing issue of global food security.”

Analyst Ash Lazenby at Liberum Capital said: “Sirius unveiled details of a lower capex, technically simpler and easier to finance alternative development solution for the York Potash Project.

“Sirius now intends to produce raw granular polyhalite for commercial sale rather than a refined, premium SOP product.

“The change in strategy, aside from being a simpler and easier to finance solution, has been driven by positive conversations with customers on the marketability of raw polyhalite as either a direct application fertiliser or blending component for NPK.”

The state-of-the-art mine will be the first in the UK for over 40 years.

Potash is a vital source of potassium and is an essential component for plant growth. Without it food can not be produced with the same level of efficiency and certainty.

York Potash said security of supply of potash is vital for the UK’s national interest.

The proposed location for the mine access is an existing farm and commercial forestry block located two kilometres south of Sneaton village and four kilometres south of Whitby. It is located off the B1416 and has access to the A171.

[email protected]