Name of the Project
North Yorkshire polyhalite project.

Location
North Yorkshire, in the UK.

Project Owner/s
Sirius Minerals.

Project Description
A strategic review of the North Yorkshire polyhalite project’s development plan and optimisation opportunities has produced a revised two-stage project development plan, comprising an initial scope of work and a deferred scope of work.

The initial scope will comprise shaft-sinking activities for all four shafts until first polyhalite is achieved and the excavation of Drive 1 of the MTS tunnel to Lockwood Beck. This scope has been selected to deliver the elements of the project considered to be higher construction risks and/or to have the greatest derisking benefit.

The deferred scope incorporates the remainder of construction required to deliver ten-million tonnes a year, ramped-up and operational. The remaining work comprises a more ‘infrastructure’ style risk framework, more consistent with civil construction and more commonly financed in large scale by project finance banks.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The review demonstrates robust project values, with current project net present values for the 13-million-tonne-a-year business case ranging from an estimated $11-billion to $13-billion and internal rates of return ranging from 29% to 35% for a range of development scenarios subject to suc­cessful financing.

Capital Expenditure
The initial scope will cost an estimated $600-million to implement.

Planned Start/End Date
Not stated.

Latest Developments
Based on the work undertaken so far in the strategic review, Sirius has identified several options with the potential to improve the cost and delivery timelines within the deferred scope, and intends to incorporate these options into the revised base case. The cost and schedule estimates incorporating these options are subject to detailed engineering and procurement work that is ongoing and will be finalised before implementing financing for the deferred scope. The strategic review has also identified some further significant opportunities that could potentially benefit the project through cost reduction and schedule acceleration.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sirius Metals investor relations, Jennifer Wyllie, tel +44 845 524 0247 or email r@siriusminerals.com.