Sirius Minerals cancels $500 million bond sale for UK potash mine

LSE-listed miner Sirius Minerals has been forced to cancel a US$500 million bond sale for its large scale potash mine in the UK, throwing the future of the project into doubt.

The company blamed poor ‘market conditions – including Brexit and a lack of government support – for the decision, and will now undergo a six month review for a new financing plan to revive the project.

Sirius’ 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.”

The project, located in North Yorkshire, is set to become the world’s largest mine for polyhalite – a naturally occurring fertiliser used in agriculture. The mine is due to open in 2021 and is expected to create over 1,200 jobs.

“This government owes everyone involved an apology. It’s not too late to change their minds and step in to save this huge project and the jobs and livelihoods that rely on it,” said local Member of Parliament Anna Turley.

Sirius’ share price collapsed in half on reaction of the news.