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Sirius' ambitions in the balance

Consultancy reports published by the North York Moors National Park Authority have raised doubts over whether Sirius Minerals will obtain planning permission to develop the York Potash mine near Whitby.
July 19, 2013

These are worrying times for Yorkshire-based potash miner Sirius Minerals (SXX). The company has “reluctantly” been granted a third deferral by the North York Moors National Park Authority over the development decision linked to the York Potash mine near Whitby, but the company faces a challenge addressing negative environmental and economic issues arising from separate consultancy appraisal reports.

IC TIP: Sell at 20.25p

A decision on the planning application had been due at the end of this month, but Sirius felt that it needed more time to submit essential environmental information in response to a report produced by AMEC Environment & Infrastructure UK; details of which were published on the National Park Authority’s website. A revised determination date has yet to be set, but it may be some time given the importance of the decision, although this latest delay obviously irked the planning authorities who said that it would prove both “costly” and “highly disruptive”.

Sirius has taken issue with a second report published by AMEC entitled: 'Review of Major Development Test: National Need and Local Economy'. The report concludes that the need for the development has not been proven based on the contention that a significant market for polyhalite does not exist; a view put forward by the IC’s Matthew Allen earlier this year (IC, 27 March 2013). Sirius strongly refutes this suggestion, pointing to the framework sales agreements it has already put in place, together with its marketing agreement with fertilizer distributor Keytrade AG.