The Sirius Minerals Foundation, which has been initially funded by Sirius Minerals Plc, will receive an annual royalty of 0.5% of sales of production from the group’s fertiliser mine, which is due to come online in 2021.
It is estimated that the royalties payable to the foundation will amount to £10mln per year.
The first injection from Sirius Minerals Plc comes after the recent start of construction operations.
First year awards from the foundation are due to prioritise grants of between £500 to £5,000.
The foundation is designed to support community projects and initially it is intended that the grants will prioritise support for communities and residents that are located more closely to the construction of Sirius’ North Yorkshire polyhalite project – including communities within ten miles of the Woodsmith Mine and five miles of the mine infrastructure.
Gareth Edmunds, director of external affairs at Sirius Minerals Plc, said: “The Sirius Minerals’ board and management committed to the establishment of the foundation in 2012 and it is something that we believe passionately in.
“It is deliberately designed to put money back into the community and we expect it to become a meaningful part of the local community and for it to support local projects for many decades to come.”
Foundation chairman David Archer added: “We are delighted that the Foundation can access its first substantial funding from Sirius, which is the first step in realising our ambition of making a positive difference to the local community and the lives of local people.
“The initial grant giving programme will allow us to better assess the funding priorities within our area of interest and I would encourage people to find out more on our website.”