26th Feb 2014 11:00
LONDON (Alliance News) - Sirius Minerals PLC Wednesday said that it has decided to replace its previously proposed pipeline for transporting polyhalite with an underground conveyor based system at its flagship York Potash Project.
The potash exploration and development company, with operations in the UK and US, said that following a detailed review by external engineering consultants, it has decided to transport its polyhalite to port through a series of linked conveyors located within a mining style tunnel at depths of around 120 to 360 metres.
The company had previously came up with a pipeline concept for its York Potash Project in the UK with increased capital cost, greater level of above ground infrastructure and increased construction activity.
Sirius Minerals said the conveyor is planned to be completed with five linked mining tunnels or roadways, each of approximately 7.5 kilometres in length.
The company said the decision has reduced construction disturbance by 70% with no construction in any designated sites and significant improvement in project value through operating cost reductions, increased capacity, reduced risks and additional product options.
Sirius said the estimated operating cost reduction is roughly 25% to USD10 per tonne but its total project capital cost is expected to increase 15% to roughly USD280 million.
The company said that based on the changes, there is no change to the expected mine application timing of submission in July.
Polyhalite is used as a speciality fertiliser as it contains a range of nutrients and is low in chlorine.
Sirius Minerals shares were up 5.4% to 13.70 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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