Sirius Minerals on track to complete Yorkshire mine but still chasing up to $600m
Sirius Minerals expects to secure $3bn (£2.3m) funding towards its Yorkshire mine by the end of the year but is still exploring options to plug a cost overrun of up to $600m.
The company, constructing a polyhalite mine under the North York Moors, said the project remained on track to be completed in 2021, with cash being generated from 2023.
It reported a loss of £95.3m for the six months to 30 June – down from £151.3m the previous year but said the results were “academic” at this stage of the project.
Read more: Sirius shares crash after rising Yorkshire mine costs
Earlier this month the miner said constructions costs had risen by up to $600m and that the initial $3bn funding would take longer to arrive than expected.
But the project received a boost through a $250 deal with Hancock British Holdings, enabling work to continue while fundraising continued.
Chief executive Chris Fraser said the company was finalising the major procurement packages – for around $3bn and expected to secure commitments from lenders later this year.
Fraser told City PM the company was still working on “a number of options” regarding the remaining $400-600m.
Earlier this month it also announced a supply agreement with Cibra, Brazil's sixth largest fertilizer distributor, for up to 2.5 million tonnes of POLY4 fertiliser once the mine begins producing.
Read more: Sirius cuts $250m deal to fund rising Yorkshire mine project
The Cibra supply deal takes the total contracted sales volume up to 8.2 million tonnes per annum (mtpa) above the company's target.