The share of Sirius Minerals drops by 15% after the miner warns of rising costs in his manure project in North Yorkshire
- The shares in Sirius Minerals fell on Thursday by more than 15 percent
- The company warned that it might need an additional $ 600 million to build its mine
- In the first half of the year, Sirius shares were among the best sellers of all shares
Emily Hardy because this is money
The shares in Sirius Minerals, based in the county of Yorkshire, plummeted more than 15 percent today after the miner announced the rising costs of starting the organic fertilizer mine.
The group said the amount needed to build its mine in the North York Moors rose between US $ 400 million and US $ 600 million.
Sirius Minerals – highly valued because of the rise of the AIM junior market from London to the FTSE 250 – was the sixth best-selling shares through the Share Center investment platform in the first half of this year, even though it was not yet operational.
This is the site for Sirius York Potash Mine near Whitby in the North York Moors National Park
In one of Britain's largest engineering projects, it is developing an underground tunnel of 200 square kilometers between Woodsmith Mine and Lockwood Beck in North Yorkshire to dig up a fertilizer called polyhalite.
The extra funding is more than the 3 billion dollars that Sirius already needs. The total cost estimate for the mine is now US $ 4.2 billion, an increase of US $ 3.7 billion in US dollars in 2016.
It limited the installation costs to changes in the design of the tunnel, including an increase in both the inner diameter and the joint thickness.
Map of the area where the mine is being built
Sirius managing director Chris Fraser said: "The anticipated increased financing requirement resulting from this process reflects an optimization of the tunnel design of the mineral transport system and significantly improved risk diversification for Sirius to support the financing of senior debt financing.
& # 39; The economy of the project remains extremely fascinating and we are confident that they will support the expected additional financing needs. & # 39;
Work on the mine started in June this year, with about 2,000 employees to build it. Another 2,500 jobs will be created once fully operational – probably around 2021.
Once completed, the polyhalite mine is expected to be one of the largest in the world of its kind.
According to Forrest, the shares in the group are usually volatile, suggesting that short-term investors are attracted in the hope of making a quick profit.