Potash big boost ... and spectacular Tour return
Australian mining chief buys big share stake
An Australian billionaire has committed £250m to the potash mine plan.
The company behind the £2 billion potash mine project near Whitby received a major financial boost this week, as Gina Rinehart’s Hancock committed a £250 million investment towards the mine.
Sirius Minerals announced that it has secured a “royalty financing agreement” with the Australian mining powerhouse, Hancock.
Rinehart, who chairs Hancock, will purchase $50m worth of Sirius shares and receive a 5 per cent royalty on the first 13 million tonnes of fertiliser produced annually and 1 per cent on anything over that output, in return for a further $250 million dollar investment.
Sirius plans to build the UK’s biggest potash mine in Sneaton, with the project potentially that could create 1,000 jobs.
A spokesman for Sirius Minerals said: “The Royalty Agreement is an important part of the overall financing strategy for the project and we continue to make good progress with our two stage approach to financing”.
It is thought that the mine could be operational within the next five years, with Sir- ius minerals previously stating that the mine could be up and running by 2021.
On the plans to commence construction, a spokesman said: “The start of construction is reliant on financing the project and we will look to commence those works as soon as possible after stage 1 financing is delivered.”
Reflecting on securing the backing of Hancock, Chris Fraser, Sirius Managing Director, added: “We are delighted to have signed this agreement with such an experienced party in the mining industry, and one that has very successful and strong leadership and a long term and growing agricultural interest.”