There have been two large mining projects in the UK in recent years – both have run into trouble.
Last year, Wolf Minerals ceased trading and appointed administrators at the Drakelands tungsten and tin mine in Hemerdon near Plymouth. Last month, Sirius Minerals ran into trouble with its ambitious potash mine under the North York Moors.
Yesterday, there was further bad news for Sirius. It has failed to secure the £400m needed for the next phase of development, after the government refused to provide support. Sirius has only enough cash to last six months. Its shares fell by almost 60%. In an effort to save the mine, the company will wind down construction work and as it seeks to find a partner or alternative financing.
Chris Fraser, Managing Director and CEO of Sirius, blamed "poor market conditions" and Brexit:
Nearly every meeting we had in July and August, every single investor asked about Brexit.
It’s really not looking good for Sirius Minerals, the company developing a $5 billion fertiliser mine under the North York Moors.— Emily Gosden (@emilygosden) September 17, 2019
It has been forced to abandon a crucial bond sale & reveals the government rejected a last-ditch request for loan guaranteeshttps://t.co/dLDeZcicyY
Not good news for Sirius Minerals. Real doubts now about the Woodsmith mine unless they can find a strategic partner. pic.twitter.com/W7XdBvi1pD— Neil Hume (@humenm) September 17, 2019
Sirius Minerals CEO says company would have run out of cash by the end of October if it had continued at current rate of development,— Neil Hume (@humenm) September 17, 2019
