Sirius workers to be
SIRIUS Minerals has said financing on its multi-billion pound mine could have been “delivered as planned” if the Government had not refused its plea for help.
The company behind the world’s biggest mine of its kind, on Teesside’s doorstep, pulled a £400m fundraising attempt yesterday.
The news sent its share price into freefall and raises serious doubts over the future of the £3bn project.
Sirius will now hold a “comprehensive” review over the next six months to look at ways of securing a funding lifeline.
The Government has said it cannot comment on commercially sensitive matters, but it had to “assess the potential of a project against the need to protect taxpayers’ money.”
Many of the 1,200 workers building the mine and Teesside process plant will be stood down over the coming weeks and months. Around 450 are Teessiders.
A skeleton staff will remain on site and Sirius says it is “keen to maintain” as much of its team as possible.
It is not yet known how many workers will face redundancy.
The lack of support by the Conservative Government sparked a fierce row between Labour and Tories on Teesside.
Sirius said ministers turned down a request to guarantee $1bn (£800m) of bonds following a review.
Originally, the plan was for the Government to underwrite £2bn for the mine but talks failed to reach any conclusion.
But Middlesbrough South and East Cleveland MP and Treasury minister Simon Clarke said: “The Government will always work to support businesses where there is a way to do so that meets the rules which exist to protect taxpayers’ money. No stone has been left unturned.
“Everyone in the Tees Valley will wish the project every success and hope it can overcome these challenges.”
Sirius’ also blamed its bombshell on Brexit turmoil and the UK’s shaky political landscape.
‘Current market conditions’ such as US President Donald Trump’s trade war with China are also creating uncertainty for investors.
The announcement saw Sirius’