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Sirius Minerals signs contract for development of Teesside port handling facilities

Published by , Assistant Editor
Dry Bulk,

Sirius Minerals Plc (Sirius) has announced that its subsidiary York Potash Processing and Ports Ltd and McLaughlin & Harvey Ltd (McLaughlin & Harvey) have entered into an engineering, procurement and construction contract for the development of the company's port handling facility at Teesside.

The contract scope comprises the design and build of works associated with the port handling facilities including product storage facilities for approximately 250 000 t of product, ship loading equipment, ship outload infrastructure, and the final product screening facility. The contract price, which will be incurred in GBP and EUR, is on a lump sum basis and is in line with the company's capital re-estimate announced on 6 September 2018.  The proposed schedule for the works fits within the company's overall project schedule. 

The company's stage 2 financing related procurement programme is nearing completion for the major construction packages with only the mineral transport system (MTS) fit-out scope remaining.  The company has identified STRABAG as its preferred contractor for the MTS fit-out and is in the final stages of negotiation for this scope of work. 

Chris Fraser, Managing Director and CEO of Sirius, commented: "We are pleased to have entered into another significant construction contract for the ongoing construction of our world leading polyhalite project. 

In 18 months we have made great progress and are now nearing the completion of the procurement programme to support our stage 2 financing process. 

"The construction of our port infrastructure is another example of the level of investment and skilled job creation we are delivering in both Teesside and the UK as we develop a project that has the potential to make the UK a world leader in the fertilizer industry."

Ben Houchen, Mayor of the Tees Valley, commented: "I am delighted to see yet another step forward for Sirius Minerals' nationally significant project. The level of commitment to Teesside from this project is huge as it will continue to generate jobs for local people and help expand our global reputation.  The successful development of the Sirius project will see over £400 million invested in Teesside and will importantly see the regeneration of the former Redcar steelworks port frontage. We expect many more regeneration projects will be announced on the South Tees Development Corporation site very soon."

Port handling facility

The port handling facility will receive the company's polyhalite fertilizer after it has been transported from the Woodsmith mine site via the 37 km underground mineral transport system and processed into the finished product, POLY4, at the Wilton Materials handling facility.  At peak production, the company expects to export 20 million tpy of POLY4 to markets all over the world. Offtake agreements have already been signed with customers on four continents for 8.2 million tpy in peak aggregate volumes of POLY4.

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