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Sirius Minerals investors excited as boring machine lands in Yorkshire

The boring machine will cut the tunnel between the underground mine and the port on Teeside.

sirius minerals boring equipment
The machine arrived in several parts

Investors in Sirius Minerals PLC (LON:SXX) will be pleased with the news that the first of three tunnel boring machines is now on site in Yorkshire.

The mine developer will use the new gear to drill out the 23 mile tunnel that will connect the group’s polyhalite fertiliser mine to export facilities on Teeside.

Two more boring units will be added to the project next year to complete the tunnels.

READ: Sirius Minerals Yorkshire mine will rely less on government debt

“Sirius is intending that mined polyhalite never comes to surface at the Woodsmith minesite,” said Yuen Low, mining analyst at Shore Capital.

“Instead, it would be hoisted to the 360m level and transported to the MHF via a Mineral Transport System (MTS), which is essentially a high-capacity conveyor in a 37km-long tunnel.”

Low added: “All things considered, while Sirius is currently at development stage and still some years from becoming a cash flow-generating company, we believe that an investment in Sirius should become progressively de-risked and enjoy significant value uplift as it advances towards production.”

Sirius Minerals shares were up 1% on Monday, changing hands at 20.0p.

--Updates for share price--

Quick facts: Sirius Minerals PLC

Price: 3.55 GBX

LSE:SXX
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Market Cap: £249.22 m
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