Sirius sees way of cutting York Potash cost

PROFITS from a by-product of potash mining could offset the costs of the York Potash Project, the company behind the plan said today.

Sirius Minerals bought York Potash last month and is looking to develop plans to open the first new UK potash mine for 40 years in North Yorkshire.

In a stock market update this morning, Sirius said its analysis suggests one third of a tonne of magnesium hydroxide, used in bleaching and fire suppression equipment, could be produced for every tonne of sulphate of potash.

Magnesium hydroxide is currently selling for around £300 a tonne which “could potentially contribute a significant by-product credit to reduce the operating costs of the project”, the company said.

Managing director Chris Fraser said: “We already believe we have one of the world’s largest deposits of polyhalite.  Now, although it is early days, this exciting development could have a significant positive impact on the potential of the York Potash Project. 

“It also further emphasises Sirius’ focus to sustainability and looking to better cleaner ways of doing things.”