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Hundreds of jobs to be axed at Boulby potash mine | Hundreds of jobs to be axed at Boulby potash mine |
(about 5 hours later) | |
Hundreds of jobs are set to be axed at a North East potash mine. | Hundreds of jobs are set to be axed at a North East potash mine. |
Cleveland Potash, at Boulby, has begun consultation with about 220 workers, with a further 140 contractor roles to be cut as well. | Cleveland Potash, at Boulby, has begun consultation with about 220 workers, with a further 140 contractor roles to be cut as well. |
Parent company ICL UK described the move as "painful" and warned a similar number of jobs could go in 2018. | |
Middlesbrough South and East Cleveland Labour MP Tom Blenkinsop described it as "devastating news". | Middlesbrough South and East Cleveland Labour MP Tom Blenkinsop described it as "devastating news". |
ICL UK cited a "reduction in the level of economically-feasible potash reserves at Boulby, which the company estimates will be depleted by 2018". | ICL UK cited a "reduction in the level of economically-feasible potash reserves at Boulby, which the company estimates will be depleted by 2018". |
The plant, which currently employs about 1,100 people, will produce another fertiliser, called Polysulphate. | The plant, which currently employs about 1,100 people, will produce another fertiliser, called Polysulphate. |
Peter Smith, executive vice President-Potash of ICL, said: "In recent months we encountered geological problems which have affected previously high-yielding areas of the mine. | Peter Smith, executive vice President-Potash of ICL, said: "In recent months we encountered geological problems which have affected previously high-yielding areas of the mine. |
'Blow to the community' | 'Blow to the community' |
"In addition, our exploration programme, validated by independent consultants, confirmed further geological difficulties, which means that we have only a very limited level of economically feasible potash reserves. | "In addition, our exploration programme, validated by independent consultants, confirmed further geological difficulties, which means that we have only a very limited level of economically feasible potash reserves. |
"The reality of our potash reserves running out by 2018 means that we must develop a new business strategy if we are to continue mining at Boulby." | "The reality of our potash reserves running out by 2018 means that we must develop a new business strategy if we are to continue mining at Boulby." |
ICL UK said it would invest £20m this year in the site's infrastructure with a potential further £20m to increase production of Polysulphate from an estimated 200,000 tonnes this year to one million tonnes by 2020. | ICL UK said it would invest £20m this year in the site's infrastructure with a potential further £20m to increase production of Polysulphate from an estimated 200,000 tonnes this year to one million tonnes by 2020. |
Mr Blenkinsopp said: "It's truly devastating news for those miners and their families. | Mr Blenkinsopp said: "It's truly devastating news for those miners and their families. |
"It just seems to be everywhere you look, we are seeing huge amounts of redundancy in our industry and it's surely unprecedented, and all within the borough of Redcar and Cleveland." | "It just seems to be everywhere you look, we are seeing huge amounts of redundancy in our industry and it's surely unprecedented, and all within the borough of Redcar and Cleveland." |
Anna Turley, Labour MP for Redcar, said: "This is yet another blow to the community, who have already been subjected to thousands of job losses from the closure of SSI in Redcar in the last few weeks." | Anna Turley, Labour MP for Redcar, said: "This is yet another blow to the community, who have already been subjected to thousands of job losses from the closure of SSI in Redcar in the last few weeks." |
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