Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Sirius Minerals can now tap a huge seam of a potassium-rich mineral called polyhalite, a type of potash fertiliser described by Sirius as a “fertilizer of the future” that farmers will be able to use instead of multiple other products.
London-listed Sirius Minerals (LON:SXX) has been granted the final permits to build its massive potash project at the North York Moors National Park, one of the first new mines in the UK in the last 45 years.
The mine, poised to be one of the world’s largest in terms of the amount of resources extracted, is set to generate around an initial 10 million tonnes per year of polyhalite, used as a fertilizer, before it enters a second phase that will double that production to 20 million tonnes a year.
The $3.15 billion project faced several challenges since first unveiled in January 2011, particularly because the application to extract billions of tonnes of minerals from a national park was the biggest ever received by the country’s authorities.
But Sirius managed to get approvals and it is currently finalizing the definitive feasibility study for the project, which it hopes to complete before the end of the year. The company is planning on outlining its financing plans and to start first phase development at the project in the first quarter of 2016.
The mine is expected to create about 1,800 jobs during construction and 1,000 permanent positions once opened.
Sirius had originally expected to begin production in late 2016, with initial output of 5 million tonnes per year and had signed a few future supply agreements. The current development schedule, however, points at 2018 as the most likely time for production to begin.
Oversupply
Current potash market conditions don’t seem optimal for new players. The already oversupplied sector has seen several other major developments, the biggest being BHP Billiton’s (ASX:BHP) Jansen mine with its 5.3bn tonnes of measured resources and 1.3bn tonnes of inferred potash, going back to the drawing board.
The fertilizer ingredient is currently trading close to $300 a tonne. Producers such as BHP need prices as close as $500 per tonne as possible, so they can cover construction costs.
Image courtesy of North York Moors.
6 Comments
Sailorchief
Cecilia,
Sirius is NOT mining Potash. They will mine a far superior naturally existing product called Polyhalite, an altogether much different multi-nutrient and far more effective ‘fertiliser’ than potash. Potash producers are in awe of poyhalite and it promises to revolutionise the industry, not least affect the potash cartel.
Minerals101
Wolf Minerals (UK) Ltd tungsten mine in Hemerdon, Devon is the first new mine in 45 years. Just finished commissioning and shipping tungsten
http://www.wolfminerals.com.au/
UKminingbug
The Wolf Minerals project just outside Plymouth is already in operation producing Tungsten and Tin concentrates. Still this is good news for mining in the UK, hopefully the trend set by Wolf and now continued Sirius will continue and in a few years we’ll have a set of world class mining operations across the UK.
Brian R. McCaughrin
I did not think you could do anything in National Park of all places, anywhere in the world. I’am shocked that the Citizens of North York Moors National Park, did not try, and block this type of project from moving forward, very sad indeed.
rogertrucks
Brians comment is very valid. However the good people of North Yorkshire are happy to see the mine go ahead in this job starved area.Currently a school leaver in Whitby thinks he/she has a good job if they can get work selling icecream or burgers…
prabhu
Hi friends , i am searching for mining job , i am a mining engg from india , help me if u can its my request to all ..thank u