Thursday 27 September 2018 1:14 pm

Sirius Minerals on track to complete Yorkshire mine but still chasing up to $600m


  Sirius Minerals expects to secure $3bn (£2.3m) funding towards its Yorkshire mine by the end of the year but is still exploring options to plug a cost overrun of up to $600m.

The company, constructing a polyhalite mine under the North York Moors, said the project remained on track to be completed in 2021, with cash being generated from 2023.

It reported a loss of £95.3m for the six months to 30 June – down from £151.3m the previous year but said the results were “academic” at this stage of the project.

Read more: Sirius shares crash after rising Yorkshire mine costs

Earlier this month the miner said constructions costs had risen by up to $600m and that the initial $3bn funding would take longer to arrive than expected.

But the project received a boost through a $250 deal with Hancock British Holdings, enabling work to continue while fundraising continued.

Chief executive Chris Fraser said the company was finalising the major procurement packages – for around $3bn and expected to secure commitments from lenders later this year.

Fraser told City A.M. the company was still working on “a number of options” regarding the remaining $400-600m.

Earlier this month it also announced a supply agreement with Cibra, Brazil's sixth largest fertilizer distributor, for up to 2.5 million tonnes of POLY4 fertiliser once the mine begins producing.

Read more: Sirius cuts $250m deal to fund rising Yorkshire mine project

The Cibra supply deal takes the total contracted sales volume up to 8.2 million tonnes per annum (mtpa) above the company's target.