"A year of substantial progress ..."
"2017 was a year of meaningful progress on the ground in North Yorkshire and in the global fertilizer markets. 2018 will be another year of significant progress on all fronts, ultimately culminating in the successful completion of the stage 2 financing."
The Outlook for 2018:
· Complete main service shaft foreshaft construction and excavation.
· Complete the installation of the main production shaft foreshaft and commence foreshaft excavation.
· Commence Mineral Transport System (MTS) access shaft construction at the Woodsmith Mine site.
· Largely complete construction of MTS portal at Wilton.
· Commence shaft sinking at Lockwood Beck intermediate shaft site.
· Commence early works for the Materials Handling Facility.
· Finalise Harbour facility strategy and complete procurement.
R&D, sales & marketing
· Expand global agronomy programme and establish 80 new trials.
· Execute 2 Mtpa incremental supply agreements.
Corporate & commercial
· Substantially complete project procurement.
· Draw down the stage 1 financing royalty instrument.
· Execute stage 2 financing."
The Chairmans Statement
At full production over 1,000 high skilled jobs will be created with an additional 1,500 jobs created in the supply chain. The high-skilled jobs we will create will also be highly productive and well-paid. As the largest private sector capital investment in the North, we are sending a clear message that the region is open for business and has the necessary skills and ability to deliver major infrastructure projects.
In addition to the employment opportunities created, the Company expects that, at full production, it will make around £85 million in local payments each year and will deliver approximately £13 million in annual contributions to the Sirius Minerals Foundation, as well as being a catalyst for regeneration with the potential to create new economic clusters in the region.
Beyond the North East, our project will also bring major economic benefits to the UK as a whole. At full-scale production we are forecast to generate significant tax revenues to the national exchequer, strengthening the UK's fiscal position and supporting public services. The Woodsmith Mine and associated infrastructure will enable us to produce and sell up to 20 million tonnes per annum of our primary product, POLY4.
Having been associated with significant mining projects for a large part of my career, I take great comfort that this expected success of our business goes well beyond the investment proposition. The efforts of our team and supporters are already creating positive, tangible economic change in the UK and, we look forward to doing so for many years to come.Global
For me, it is very important that POLY4 can contribute to easing the challenge of global food security. Fertilizers are fundamental to improving agricultural yields and helping to address the forecasted imbalance between food supply and demand. Global population is growing at a rapid rate, and with it, the requirement for more food. Unless more effective, more efficient and sustainable practices are adopted, farmers and food producers will struggle to bridge the gap between supply and demand. Our global research and development programme is demonstrating that POLY4 delivers greater nutrient uptake and improves both yield and quality on multiple crops in varying geographic conditions across the world.
Sirius' team has already demonstrated their ability to deliver successful outcomes in the face of challenges others have considered overwhelming. In order to achieve our vision and ensure the potential benefits for all stakeholders come to fruition, the tenacity and determination which has defined our Company to date, will continue to stand us in good stead as we progress further into this current phase of developing our world class mining operation.
2017 Construction commences
After 5 years of exploration, preparation, obtaining planning approval and having delivered many significant project milestones, I am pleased to report that the construction of our North Yorkshire polyhalite project is well underway.
At the Woodsmith Mine site all initial site works to enable the construction of the key infrastructure components are complete. The working platforms for the main mine shaft and MTS shaft were completed early to ensure shaft related activities could commence as soon as possible.
At Lockwood Beck, Initial site works are now complete, including the upgrade and repositioning of the existing road junction. The new junction provides safe entry to the site and has also greatly improved the access to the existing road infrastructure. The shaft sinking platform and associated drainage has been installed and the site is ready for shaft sinking activities to get underway in 2018.
Market acceptance of POLY4 in the form of long term supply agreements as evidenced through our partnership with leading agri-business Wilmar reinforces and validates that POLY4 will earn its place in the global fertilizer market. Our partnership with Wilmar enables access to key markets with huge prospects for POLY4 across South East Asia. Wilmar is the latest addition to our existing group of industry leading customers with whom we expect to help drive further global demand for POLY4.
People are critical to the success of our business and I am particularly pleased with the expanding team of highly motivated, diverse and experienced individuals who have joined the business in 2017. The last year has seen our team more than double in size and the successful move in late 2017 to Resolution House, our new office headquarters in Scarborough, has provided the space, technology and environment to support our workforce.
I am particularly pleased with the overall quality of people who have joined us from the local area. To date, the majority of our head office team in Yorkshire has been sourced from the local labour market. I also take great satisfaction from the fact that many of our younger team members who joined us as apprentices are now integral members of the team. Our strong values of responsibility, ownership, belief and urgency, based on the solid foundations of safety and teamwork has propelled the team to achieve more than many people thought would ever be possible..." Ah, so ... (2MTA)
A Room with a View
Rustle rustle ;-)
Whoops ... DYOW