Britain's first potash mine in 40 years has announced £2.5-billion investment plans. Sirius Minerals is planning to raise funds from investors and banks and commence the project soon. The potash mining project is expected to create 2,500 jobs.
AIM-listed Sirius Minerals has come out with a study on potash mine. The study envisages creating a mega underground network of tunnels underneath North York Moors National Park. After a four-year battle, potash mining firm has taken up the project to be implemented over the next four years.
This is Money reports that Sirius is aiming to mine 10 million tons of polyhalite per annum. Polyhalite is a potassium-rich mineral widely used as fertilizer for food crops. A 23-mile tunnel will be also be part of the project as it will be used to transport polyhalite to a deepwater port at Bran Sands in Redcar.
Minerals will be processed at a place close to the former steelworks at Redcar on Teeside. The project is accepted in an area that's suffered from major job losses as steelworks closures. About 2,500 jobs would be generated as part of the potash mining project. 5,000 locals have bought shares in Sirius.
The potash mine is the first one in the UK in the past 40 years. A 23 mile-long tunnel will be created 250 meters beneath deep underground. After its completion, potash mining project will have the capacity of 10 million tons per annum. About 300 farmers will get £1.4 billion in royalties in next 50 years.
Independent further adds that North York Moors National Park is being at risk of extinction as local area is poised for industrialization. Some businessmen say the £2.5-billion potash mining project will be the biggest project in North of England. The potash project and other activity in local area are expected to contribute £2.3 billion to Britain's economy every year.
Potash production at mining project is forecast in 2021. Chris Fraser, Chief Executive Officer of Sirius, is hoping that 80 percent of jobs will be for locals. Majority of the people from neighboring areas are supporting the potash mining project as well. Once the project gets underway, 300 farmers and land owners get benefits of royalty.
However, environmental groups including RSPB are raising concerns about the potash mining project. Environmental agencies argue that potash mining project would damage the area. Protect Rural England (CPRE) and National Trust are campaigning against it. It's estimated that 4,921 feet (1,500 meters) mine sunk beneath the North York Moors National Park as part of Sirius Potash project, as reported by Shropshire Star.
Fraser said that several contractors were coming forward to take a part in the potash project. Industry analysts express their concerns about funding and the demand for potash fertilizer. Shrugging off all these concerns, Fraser said Sirius had already discussions with potential customers.
Potash mining project is expected to continue production for next 50 years. In fact, Sirius is confident of continuing production for over 100 years. The local area has huge reserves. It is considered to contain the world's largest and highest grade deposit of polyhalite.
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