PM urged to rethink Sirius mine decision
PRIME Minister Boris Johnson has been urged to rethink a decision not to support the stricken Sirius Minerals mine project.
Fears were raised for the future of the £3bn scheme on Tuesday after the company revealed it had failed to secure vital funds.
Sirius Minerals will now scale back construction work on the project as the strategic review takes place after the Government turned down a request to guarantee £800m of bonds to allow the company to access funding for the project to continue.
Sirius said it could not raise the necessary funding elsewhere because of the current state of the global money markets.
Redcar and Cleveland Council has now urged the Government to reconsider its decision.
Independent leader Cllr Mary Lanigan said: “This project would bring jobs and prosperity to families across Redcar and Cleveland. It would provide opportunities for both skilled workers and apprentices starting their careers and we are fully supportive of the company’s vision.
“Sirius Minerals has also shown it is serious about being here for the long term by investing in our communities. I am appalled that the Government hasn’t seen fit to guarantee the loan the company needs to secure further finance.
“The challenge for businesses is huge in the unprecedented situation the country is in and it is vital that the Government recognises this and acts to encourage a massive investment which will transform our borough and the people who live in it.
“We will work with the many people who support this project to help bring this project to completion.
“The Government has shown it is willing to back private industry and I call on Boris Johnson to rethink the decision to refuse the bonds guarantee.”
Sirius plans to transport polyhalite from the mine
near Whitby via an underground tunnel to the Wilton International site, where it will be processed for export around the world.
Shares in the company have plunged after the revelation that it had failed to secure funding.
The stock fell a further 11% yesterday to 4p. Around 90% of its value has been wiped out since reaching a high of 45p in 2016.
The PM has separately been invited to Scarborough for crisis talks.
The Labour leader of Scarborough Council, Cllr Steve Siddons, has written to Mr Johnson urging him to take immediate action to secure the future of the company. He said: “This project has the potential to grow the North Yorkshire economy by 17%, and provide a £2.3bn annual contribution to UK GDP.”
The Government has declined to comment in detail on the issue due to “commercially sensitive matters”.
A spokesman said: “All requests for financial support must meet necessary lending criteria.
“When examining any request for financing, we have to assess the potential of a project against the need to protect taxpayers’ money.”