Sirius Minerals rejects negative report on flagship project - UPDATE

R.D. | ShareCast | 19 Jul, 2013 07:10 - Updated: 15:08 | | |

loan

Sirius Minerals has defended its flagship potash project against a report that casts doubts on the benefits of the proposed mine in Yorkshire.

The report was written by consultants AMEC for the North York Moors National Park Authority, which will decide whether to allow the project. It said the market for the polyhalite fertiliser at the site was too small and that economic and employment benefits put forward by Sirius would not happen.

The company's shares were down 12.2% to 19.75p at 08:50. They have lost 29% in the last week as doubts have mounted about the key Yorkshire project. The company secured a delay to its application on July 18th to let it address issues in the AMEC report.

In a statement, Sirius said: “This document [the report] concludes that the need for the development has not been proven. In the conclusion, AMEC states that it does not believe there is a significant market for polyhalite and therefore stated economic benefits are unlikely to occur. This is followed with a view that as polyhalite cannot be sold in sufficient volumes, the economic and employment benefits cannot be realised.”

Sirius said there were a number of omissions in the report that it will point out to the park authority. These include the potential for jobs and economic growth and agreements it has to sell polyhalite.

SF

More news

14:14 Asia helps to offset European dampener for Heineken

A wet summer in Europe dampened third quarter sales at Dutch beer giant Heineken, which rebuffed a takeover bid from rival SABMiller last month, although it stuck to annual profit forecasts.

14:04 Market overview: Investors still bottom-fishing in Tesco, TD says

1404: Tesco most-bought UK share by TD Direct clients in three of past four weeks.

14:03 Tesco most-bought UK share by TD Direct clients in three of past four weeks

13:58 FX round-up: Risk appettite picks up

Risk appetite was buoyed on Wednesday by speculation the ECB might move to expand the scope of its asset purchase programme to include corporate bonds. A slightly smaller than forecast slowdown in Chinese economic activity also propped up sentiment.

13:45 US pre-open: Futures flat after strong surge, consumer prices rise

US stock markets were set to open more or less flat on Wednesday after impressive gains registered the previous session, as investors sat on the fence after a mixed bag of corporate earnings.

13:39 Commodities: Copper and oil gain on Chinese data

Three-month copper futures on the LME gained 1.66% to $6,669 per metric tonne out on the LME following a smaller than expected slowdown in Chinese economic growth in the third quarter.

13:34 Eurotunnel Q3 revenues boosted by UK recovery, strong traffic

Channel Tunnel operator Groupe Eurotunnel saw a 7% increase in turnover in the third quarter, helped by a recovering UK economy and strong traffic figures.

13:31 US CPI remained unchanged in September

US consumer prices remained unchanged in September at a 1.7% year-on-year rate of change, according to the latest figures available from the Bureau of Labour Statistics.

13:15 Broker tips: GSK, BHP Billiton, International Personal Finance, Supergroup

Hargreaves Lansdown says the City may take a more charitable view of Glaxosmithkline shares after the drug group announced higher third-quarter earnings per share and a streamlining of its business.

13:13 Market may need to revisit Glaxo stance, says Hargreaves Lansdown

Hargreaves Lansdown says the City may take a more charitable view of Glaxosmithkline shares after the drug group announced higher third quarter earnings per share and a streamlining of its business.

Advertising

HIGHLIGHTS

MPC minutes emphasise lack of inflationary pressures

As anticipated , Carney maintained his majority of 7-2 in favour of steady policy.

VIDEOS

EUR/USD: continues its clearly bearish trend
REGISTER NOW!