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Potash mine under national park will make Yorkshire farmers millionaires
North Yorkshire Moors Potash Mine – Sirius Minerals – York Potash
This article titled “Potash mine under national park will make Yorkshire farmers millionaires” was written by Rupert Neate, for The Guardian on Thursday 31st January 2013 20.11 UTC
Dozens of Yorkshire farmers are on the verge of becoming millionaires thanks to a 250m-year-old layer of minerals a mile below their muddy boots.
Chris Fraser, a former investment banker, has submitted a planning application to mine the world’s largest deposit of potash, a powerful fertiliser, in an ancient seabed deep below the North York Moors national park.
Fraser, who has been planning the mine for a decade, said exploratory boreholes showed the moors held “the world’s largest and highest-quality resource of polyhalite”, a mineral-rich form of potash.
If the planning application, which is supported by the local council and all neighbouring MPs, is approved by North York Moors national park authority, it will lead to the construction of the biggest British mine in a generation and create 1,000 jobs.
Landowners could be in line for a lottery-style windfall because Fraser’s company, Sirius Minerals, has promised to pay out more than £1bn in royalty payments over 50 years.
“The landowners own the minerals and we will pay them a royalty for using them,” Jason Murray, finance director of Sirius, said.
He refused to disclose exactly how much landowners would be paid, but said a complex royalty payment formula had been agreed after two years of negotiations between 400 landowners involving eight law firms.
“Some of them will become very wealthy,” he said. “There will be a few new tractors around the area.”
He said some large landowners near the mine, south of the village of Sneaton, nearby Whitby, would become multimillionaires within a few years. If the £1bn were split evenly between all landowners, each would collect about £2.5m.
Fraser, a former Citigroup banker, will also make a packet as he owns 8% of the company. Other directors own about a further 8%, with 10% held by people local to the mine. The remainder is owned by institutional investors.
The potash [potassium-containing salts] and polyhalite deposits are the remains of a Permian-age sea that stretched from England to Poland 250m years ago.
Geologists have known for decades that the moors contained big mineral deposits, and global mining companies submitted plans for mines in the 1970s but did not follow through when the price of potash dropped.
“Rio Tinto looked at it in the 70s, when the prices were about $100 a tonne,” Murray said. “Then when the price fell, lots of the data was left in a garage.”
Of the mining planning applications granted in the 1970s only one, Cleveland Potash mine near Boulby, ever began operations. It is still working today and is the UK’s biggest mine, but would be surpassed in size by the Sirius mine.
Soaring global demand for fertiliser has sent the potash price beyond $400 a tonne. Recent test drilling resulted in a near-doubling of the moor’s expected potash reserves from 1.3bn tonnes to 2.2bn – making it the world’s biggest potash deposit. Murray said there was so much of the mineral under the moor that there was “more than you could ever mine”.
The location of the potash inside a national park made it very difficult for global mining companies to progress mining projects. But Murray said that the rising price of potash had made it possible to invest more money in making the mine unobtrusive.
“As much of it as possible will be underground, and what is above ground will look like farm buildings,” Murray said. “It won’t look like a traditional mine.” The mine shafts will not be visible from the ground. Instead miners will walk 300 metres down an inclined path to the top of a 1,600m lift shaft down to the polyhalite shelf.
The raw material will travel up another shaft before being crushed, mixed with salt water and pumped 28 miles (45km) along a pipe to a Teesside processing plant. “We’re using a lot of subsurface buildings,” Murray said. “It won’t see daylight until it arrives at Teesside.”
At peak production in 2020, the mine will produce more than 20m tonnes a year. From the port most the potash will be exported to China, India and Brazil and other countries with large amounts of intensive farming. Murray said the mine could also supply all of Britain’s potash demand several times over. The UK currently imports potash from Germany and Canada.
However, before work on the mine can begin Sirius needs to win approval from the park authority, which will now hold a 16-week public consultation.
The Campaign for National Parks said it was “very concerned about the negative environmental impacts of locating such a significant development in a national park”. A spokesman said the law prevented Sirius from building the mine inside the national park if alternative sites were available, and said Sirius had “not provided an adequate explanation” as to why it could not locate the mine outside the park.
Murray said it was “quite hard to find an isolated location that isn’t in the protected part of the moorland”.
13 Responses to Potash mine under national park will make Yorkshire farmers millionaires
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Say No To Joe
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JD
February 1, 2013 at 5:30 pm
A cautionary not: the main beneficiary will be the Duchy of Lancaster as it is the biggest landowner and of course the owner of the marine rights. Several of the farmers own the land bought from the state but they do not necessarily own the mineral rights. So that’s the Treasury – ie all of us who will benefit the most.
p.boiston
February 1, 2013 at 5:56 pm
I was told by a farmer to marry a farmers daughter and inherit the farm.
He called his son inlaw Cuckoo. Cuckoo soon sold the farm as soon as his father inlaw passed away and he is now a millionare.
I wont listen will i.
David Perry
February 1, 2013 at 7:40 pm
So where are all the millionaires from the rights from Bouldby?
J Chapman
February 2, 2013 at 10:44 am
Most of Boulby’s potash is mined offshore – even though their mine (an old-fashioned monstrosity compared with the York Potash design) stands inside the national park.
York Potash have also been granted a licence to mine offshore but the mineral they intend to extract, polyhalite, has been found inland, hence the proposed mine will work the onshore resource for many years, benefiting the land and mineral rights owners with royalties.
Stakesby Legs
February 1, 2013 at 10:37 pm
Whats the betting Linglans Farm will be one of the lucky few?
Tim Thorne
February 2, 2013 at 5:53 pm
I can’t see it. They say farms close to Sneaton will be the first to benefit financially and Cloughton is many miles to the south.
I’ve seen plans for a ventilation shaft very close to that farm, but on the opposite side of the Whitby road. I don’t imagine the shaft will be built or actively used in the near future as there is a lot of Polyhalite to mine before they get that far south. Maybe 20 years or more?
admin
February 5, 2013 at 1:31 pm
Local GP Speaks Out – Read More Here.
http://www.guardian.co.uk/environment/2013/feb/04/mineral-wealth-belongs-to-all
It is unnecessary (there is no world shortage of potash, and there is already a potash mine in the national park which could increase production of potash and polyhalite), speculative (wholly dependent on the market) and designed purely for private profit. The effects can only be destructive: disruption to already inadequate roads, noise and light pollution; radical alteration of soils, landscape and wildlife. The energy used will mean a huge carbon footprint. Of course there will be jobs, but the unemployment rate in the national park is under 2%. If we don’t protect national parks from industrialisation, what is the point of them?
Dr David Cunion
Ugglebarnby, North Yorkshire
J Chapman
February 5, 2013 at 2:44 pm
We need to plan ahead to ensure the availability of essential resources as the global population grows and as third world countries evolve into wealthier nations able to expand their own agricultural eco-systems in order to better feed their people. The proposed new mine will produce essential nutrients from 2017 for a century or more. Today’s producing mines are mostly ageing and many will be exhausted within a decade or two. So it is vital that new sources are continuously brought on stream.
Moreover, based on the projections published by Sirius Minerals, the York Potash mine will be able to produce fertilisers more cheaply than the great majority of existing mines. This will put them in a strong position to win business from competitors and hopefully to play a leading role in bringing down the price of an essential commodity which has hitherto been controlled by cartels in Canada and Russia.
This will be good for humanity, good for UK plc, good for North Yorkshire and good for Sirius.
Chris the Milkman
February 6, 2013 at 1:17 pm
As Dr Cunion’s letter has been posted on each article, I will post my response accordingly. #democracy
Re Dr Cunion’s response to the Grauniad article.
“Unnecessary”
Since when was having a world shortage of something the only reason to tap into the Earth’s mineral reserves? Potash may not be dwindling in supply, but then Earth’s population isn’t dwindling in growth either.
If York Potash can mine polyhalite (far enriched in potassium compared to Boulby’s product” and process it to fertiliser at a competitive cost, we have a winner. It can only be a good thing for Indo-China-rica to have another supplier of the product their billions of people require, even if it is just to drive down their import costs compared to the cartelesque situation with Saskatchewan and others.
If there really is no need for a polyhalite mine then time will tell. Once the SM11 results are out in the public domain Sirius should be able to move their resource to ‘Indicated’ enabling them to gain the attention of large financiers. Big investors will not invest if they see the project as likely to be surplus to the needs of those in Asia and Africa.
“Speculative”
All business models are speculative to begin with, that is the whole point of the two years+ of research, mineral measurement, and in depth study – to turn that speculation into indication that the mine can help form a strong, competitive, and long lasting business model.
“Designed purely for private profit”
Yes, like any successful business.
Except for the 0.5% revenue donated to the YP Foundation which will be directly invested into surrounding community projects
Except for the 5 (to begin with, more in the future) geology and engineering students each year which will be funded with bursaries, given internships over summer, and graduate jobs after 3 years; preventing a loss of talented students to other areas of the country, nay other countries!
Except for the many *millions* of £ that the mine will contribute to income tax over the following 100 years. Over 1000 staff (not to mention supply chain) at large salaries does a lot of tax make.
Except for the capital gains tax and stamp duty which shareholders will have to pay when many of the locals (who own 9% of the PLC) sell their stake a few years into production.
“Effects can ONLY be destructive”
Ignorance is not becoming of you. Yes there will be temporary disruption whilst constructing the mine head and drilling the shafts. Having worked briefly on a drill rig, I am aware that they make a lot of noise – but only in the immediate vicinity. If you decide to take a picnic within 100m of the mine head during construction then maybe take that into account. As for light pollution, have you ever driven towards Scarborough at night? Scarborough Rugby Club’s floodlit first and second pitches (which are lit most nights of the week to allow for training) will be just as “polluting” as the lamps required on site at Dove’s Nest during construction.
“Radical alteration of soils”
This demonstrates your basic knowledge of geology, which is fine. The only soil to be affected will be that immediately underneath the drill rig platform, the processing buildings and offices, and that which follows the pipeline. Radical is a strong word. Saying that alteration of the soil is an excuse not to build the mine head is like refusing someone a housing extension so they don’t damage the loam beneath it.
The mine will be far too deep, and the stratigraphy likely too impermeable for any groundwater run off to occur and affect other soils in the area.
As to radical alteration of the landscape…. You only need to look at the planning documents to see how sympathetic the deign will be. A small plot of land will be directly affected by the mine head, much akin to a farmer building a second cow shed and out buildings.
“Energy used during construction”
No more than building a wind farm, or several hospitals perhaps. Why should short term production of CO2 stop thousands being employed in the future when it will create little at all?
Who knows, maybe due to the impermeable nature of the surrounding stratigraphy to the seam, it could be used for carbon capture and storage; completely negating your concerns.
The unemployment rate IN THE NATIONAL PARK is under 2% as not many people live IN THE NATIONAL PARK. Those that are unemployed live in the surrounding towns.
admin
February 9, 2013 at 1:14 am
http://www.bbc.co.uk/news/uk-21379117
Andrew Tennant
March 6, 2013 at 10:36 pm
It seems to me that those who are complaining the most about the proposed site of the mine are complaining about it because it is being sited within the National Park.
It also seems that the loudest complaints come from a small number of people who live within the Park or claim to represent the views of members of associations who say their aim is to protect the Park for the wider community
Both groups also assert their belief that the mine would diminish the enjoyment that visitors and themselves gain from the time they spend in the Park.
I accept that the above individuals and groups have every right to express their views.
It would however seem to some extent likely that they could be biased in their assessment of this development due them having a minority group viewpoint and self interest and as such their representations should be viewed with some caution.
It is my opinion that the developers of the mine are sincere in their efforts to ensure the mine has the least impact possible on the landscape as their plans and actions so far have evidenced and also that the mine will do little if anything to spoil the visiting publics enjoyment of the park.
Having lived all my life on the borders of the park and knowing this area of the National Park well it seems clear to me that the mine would create little if anything in the way of spoiling visitor enjoyment of the area concerned and would plainly bring some considerable benefit to the larger community who live in the towns and villages around this area of the National Park .
This area suffers high rates of unemployment and the mine would no doubt create financial benefits for the area as a whole and encourage investment in other areas of employment in the wider community.
The National Park is in my opinion worthy of protection however this must be balanced against the overall needs of the whole community and indeed the national needs for both open unspoilt places and the need to create wealth to support the infrastructure of the nation as a whole.
This development would seem to be a first class opportunity to bring much in benefits to the local and national and indeed international communities without any substantial downside to peoples enjoyment of the area being developed.
admin
March 7, 2013 at 12:16 am
If those against the mine are just a small minority, whats the worry, surely it will be passed with the support of the large majority of the local community pushing it forward with their support.
admin
March 7, 2013 at 12:22 am
Ive been approached by the BBC for information on the mine and what local people think… I understand they are to run a program and debate on the mine. Ille keep you all posted of how it goes.