220 jobs face axe at Boulby potash mine in North York Moors

ICL said it had started consultations on 220 job cuts at its Boulby potash mine near Staithes as well as 140 contractors.

The company unveiled a “significant restructuring” of its operations, including moving from producing potash to polysulphate fertiliser.

Peter Smith, executive vice president, said the restructuring, although “painful”, was vital to secure the future of ICL UK as a viable business.

“In recent months we encountered geological problems which have affected previously high-yielding areas of the mine.

“In addition, our exploration programme, validated by independent consultants, confirmed further geological difficulties, which means that we have only a very limited level of economically feasible potash reserves.”

The announcement is the third jobs blow to hit the region in recent weeks.

The SSI steelworks at Redcar closed last month with the loss of 2,200 jobs, while construction of a new renewable energy plant in the Tees Valley has been temporarily suspended, affecting 700 workers.

Mr Smith said: “The reality of our potash reserves running out by 2018 means that we must develop a new business strategy if we are to continue mining at Boulby.

“That strategy is based on moving our focus to Polysulphate production. We are in a strong position as the only producer of Polysulphate, and based on initial market acceptance of the product, ICL is prepared to invest significant resources in developing new global markets for Polysulphate.

“We understand that proposals for staffing reductions will cause concerns for employees and their families, as well as the wider community in East Cleveland. We have today begun a redundancy consultation exercise with the recognised trade unions.

“During that process we will examine how we can achieve the changes needed to ensure the company’s future with the least impact on staff. No decisions will be finalised until the consultation with the trade unions has been completed.

“Boulby has played a major part in the economy of the area for a long time and has supplied its products to customers across the world.

“The process we are now embarking upon, although difficult and challenging, is aimed at ensuring that it will continue to be a major force in the local community and a supplier of world-class fertiliser products for many years to come.”