Sirius Announces Scaled-Back Plans For Polyhalite Project; in Talks for New Funding
Sirius Minerals, Scarborough, England, announced today a review of the development plan for its North Yorkshire polyhalite mine and processing plant in northeast England has produced a revised two-stage plan.
The revised development plan comprises “an Initial Scope” to include progress of shaft sinking to achieve first polyhalite and the drive 1 materials transport system, which the company said “significantly” de-risks the construction of the project. This work is estimated to require around US$600 million of funding to be raised.
The plans also include “a Deferred Scope” incorporating the remainder of construction activities required to deliver full production.
Sirius said that [the search for a] strategic partner and financial investor processes are underway, with the aim of securing around US$600 million of Initial Scope funding, with various parties engaged and assessing information.
The company in September cancelled it plans to raise US$500 million through a bond issue amid adverse market conditions. The bond issue was a critical part of its ambitious US$3.8 billion Stage 2 financing needed to complete its polyhalite project development as then envisaged.