Proactive Investors - Run By Investors For Investors

Sirius Minerals switches drill contract for Yorkshire polyhalite project to Polish giant

Scarborough-based AMC UK had provisionally been awarded the original contract
Woodsmith mine
The Woodsmith mine is in North Yorkshire

Sirius Minerals PLC (LON:SXX) saw its shares gain 3% today after the FTSE 250-listed firm said it has awarded the contract for drilling the shafts at its polyhalite project in Yorkshire to Polish firm DMC after ending discussions with AMC.

AMC UK had received a ‘notice of award’ in July last year for the contract, with expectations for a finalised agreement to be signed soon after.

READ: Sirius Minerals confident on York Potash development timeline

Sirius said today, that due to protracted discussions with AMC over the commercial terms it had started to look elsewhere and decided DMC, part of US$6bn giant KGHM, should carry out the design and build work for all four shafts.

Chris Fraser, Sirius’s chief executive, said DMC had proven, world-leading experience using Herrenknecht SBR technology on deep shafts.

READ:  Fertile Ground: Sirius Minerals' second fundraising round is expected in 2018, will the success continue?

“We are confident that they can deliver the North Yorkshire polyhalite project shafts significantly earlier than all previous expectations."

DMC has proposed a significantly more efficient and safer shaft sinking solution and the commercial terms and risk sharing contained in the contract are more appropriate alignment of incentives for project partners, the statement said.

In late afternoon trading, Sirus Minerals shares were up 3.1% at 22.84p.

 -- Adds share price --

View full SXX profile View Profile

Sirius Minerals PLC Timeline

Related Articles

Woodsmith mine
December 28 2017
Tracking the readership of Sirius stories, we have seen their popularity wane as retail investors have been replaced by institutions that bought into November 2016’s US$495mln placing and open offer of new Sirius stock

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use