Sirius Minerals rejects negative report on flagship project - UPDATE

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


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.


More news

17:40 Fitch puts Tesco on "rating watch negative"

Fitch Ratings has placed Tesco's 'BBB'rating on "rating watch negative” after the supermarket said it miscalculated its first half profit guidance.

17:30 London close: Tesco turmoil and Chinese woe drag down shares

Turmoil at Tesco and worries about the Chinese economy sent London's top shares into a downward spiral on Monday.

17:20 Fitch Ratings places Tesco on Ratings Watch Negative

17:14 Labour Party promises cuts in ministers' pay if elected

Ed Balls announced on Monday the Labour Party’s priorities for its budget plan, which included a reduction in ministers’ wages.

17:01 Yield on 10-year Gilts down 5 basis points to 2.5%

16:59 Air France pilots reject company´s offer

16:56 Europe close: Stocks fall amid China concerns

European stocks were in the red as China’s finance minister quelled speculation the government would boost stimulus amid weak data.

17:11 Market overview: Miners down on China worries, Tesco crashes

1630:Close UK stocks finished the session percetibly lower, with the Footsie off by roughly twice as much as its European peers. Tesco was the stand-out faller, with technical analysts warning that the company´s share price graph was left looking even weaker after today´s falls. Reading between the lines however, some analysts seemed to hold out the possibility of value being found in the shares were they to fall towatrds 150p. Miners were also weak across the board, buffeted by worries regarding the outlook for China´s economy. BNP Paribas pushed back its call for the first increase in Bank Rate to February 2015, from November 2014. As of Friday Barclays stuck to its call for a November cut. All eyes will thus now turn towards tomorrow´s preliminary manufacturing sector from the Asian giant, courtesy of HSBC. FTSE 100 down 65 to 6,773.63.

17:18 Tesco warns on profit guidance Live!

1718: Fitch Ratings places Tesco´s debt on Ratings Watch Negative.

16:25 Finance director of Kingfisher adds to stake after interims give mixed picture

Kingfisher's group finance director has spent just over £24,860 on shares less than two weeks after the release of its interim results.



Tesco warns on profit guidance Live!

Company may have tried to front-run new GSCP. Several executives set to leave.


The first resistance level now changes from 1.3220 to 1.3160