30th Jun 2015 11:26
LONDON (Alliance News) - Sirius Minerals PLC Tuesday asked for its shares to be temporarily suspended from trading on AIM in London pending an announcement regarding the company's proposed potash mine under the North York Moors National Park in Yorkshire.
The North York Moors National Park Authority is holding a special planning committee meeting Tuesday to consider the company's application, through its subsidiary York Potash, to dig a potash mine underneath the national park. The meeting may extend into Wednesday if necessary.
On June 18, Sirius said its planning application hung in the balance after the planning committee made no recommendation for the project.
Planning officers concluded that they do not believe the development represents exceptional circumstances and that the economic benefits and mitigation/compensation do not outweigh the harm caused. However, the officers also acknowledged the high level of mitigations, the significance of the economic and social benefits which could attain national significance, and the very strong local support.
In January 2011, Sirius' subsidiary York Potash contacted the North York Moors National Park Authority to express its interest in developing a new potash mine within the National Park. The York Potash project was set up to extract mineral from two deep polyhalite seams which lie beneath the National Park and extend eastward underneath the UK North Sea.
The mine will be the first new potash mine in the UK for 40 years if approved, and will have a scope of around 13 million tonnes per year and will be constructed over two phases. Potash is used primarily for agricultural fertiliser.
"The first phase is designed to provide a 6.5 million tonne operation with the ability to be expanded to 13 million tonnes per annum over a period of years. At full production the mine will bring an annual contribution to the UK GDP of over GBP1.0 billion, helping the UK?s prosperity and growth. It will also help to reduce the country?s trade deficit, making it a truly nationally significant project," said Sirius on its website.
The committee meeting echoes similarities to the controversial fracking decision made by Lancashire County Council Monday, resulting in a fracking application being rejected on concerns about the effects on the environment and the local people.
Sirius Minerals shares were last quoted at 14.61 pence prior to the suspension. WH Ireland, the company's nominated advisor and broker, has a price target for Sirius of 37p with a Buy recommendation on its hopes for a "positive decision" by the planning committee.
By Joshua Warner; [email protected]; @JoshAlliance
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