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Giant Yorkshire mine suffers funding blow | |
(36 minutes later) | |
Sirius Minerals has been forced to cancel plans to issue a $500m (£403m) bond for a fertiliser mine it is developing in the North York Moors. | |
It paused the bond issue last month, but has now said it cannot issue it, blaming "market conditions", including Brexit and lack of government support. | It paused the bond issue last month, but has now said it cannot issue it, blaming "market conditions", including Brexit and lack of government support. |
It will now undergo a six-month review of four different options for a new financing plan to resume the project. | It will now undergo a six-month review of four different options for a new financing plan to resume the project. |
The company's shares fell by 63% in early trading on Tuesday morning. | The company's shares fell by 63% in early trading on Tuesday morning. |
The project is set to be the world's largest mine for polyhalite, a naturally occurring fertiliser which is used in agriculture. The mine is due to open in 2021 and create more than 1,000 jobs. | |
The plans include a 23-mile (37km) tunnel to transport minerals to a processing plant near the former Redcar steelworks. | |
Announcing the changes, managing director Chris Fraser said: "This is the most prudent decision to give the company the time necessary to restructure its plans to move the project forward. | |
"The process will incorporate feedback from prospective credit providers around the risks associated with construction and will include seeking a major strategic partner for the project." | |
In a statement, the company said it had asked the government for support but its request had been turned down. | In a statement, the company said it had asked the government for support but its request had been turned down. |
Sirius added that it believed that "this commitment would have enabled the company's financing to be delivered as planned". |