Sirius Minerals plc Quarterly update for Q2 2017 (5034J)

TIDMSXX

RNS Number : 5034J

Sirius Minerals plc

29 June 2017

29 June 2017

Sirius Minerals Plc

Quarterly update for Q2 2017

-- The Project remains on time and on budget.

-- Woodsmith Mine enabling works are now complete and site preparation works are well advanced.

-- Diaphragm walling activities scheduled to commence in the third quarter of 2017.

-- Main Board move completed with Premium Listing obtained and FTSE 250 inclusion achieved.

-- Sirius Minerals Foundation has launched first grant giving programme.

Sirius Minerals Plc ("Sirius" or the "Company") provides its quarterly update on the development of its North Yorkshire polyhalite project (the "Project") for the first quarter of 2017.

Chris Fraser, Managing Director and CEO of Sirius, comments:

"It has been a productive quarter with timely progress made on site preparation works in advance of shaft sinking commencing in quarter three. The team on site and at our headquarters has grown considerably as we continue with the delivery of the Woodsmith Mine and its associated infrastructure."

Safety

No recordable incidents were incurred during the period. As on-ground activities intensify, safety vigilance becomes even more important and the Company's project team continues to increase its focus on safety matters as construction ramps up.

Cost and schedule

The project remains on budget and on schedule.

The Company continues to evaluate opportunities to accelerate components of the shaft and tunnel spend to further de-risk the implementation of the construction project, and potentially create opportunities for shortening the Project schedule. Some shaft design optimisations have now been incorporated into the development plan and options to bring tunnelling activities forward are in commercial discussion with the preferred tunnelling contractor.

Commercial

Negotiations are nearing completion with AMC for the broader shaft sinking design and build contract. The contract is expected to be executed in early Q3 2017 on terms consistent with those previously articulated to the market. The Company is in discussions with the Hochtief Murphy Joint Venture in relation to agreements for early works activities which will form the foundation of the broader tunnelling programme.

Permitting

On 4 May 2017, the Company was issued with its formal commencement of development notice from the North York Moors National Park Authority. The Company continues to make good progress in clearing conditions required in advance of its rolling work programme.

Site preparation

Highways works around the Woodsmith Mine are complete. Site access and initial ground water protection work is complete. The main internal site access road has been laid and surfacing work is nearing completion. The extension of the mine head platforms has commenced and the foundations for the on-site concrete batch plant are being built. All tasks that require completion in advance of the commencement of initial shaft sinking activities are on schedule.

Site preparation activities have commenced at Lockwood Beck - the site for an intermediate shaft for the mineral transport system. This has included enablement highways works and general groundworks to support future shaft sinking.

Geotechnical investigation

The production shaft borehole is progressing with coring and testing completed to the 840m level. The near surface geotechnical programme has now been completed and the results are being analysed and incorporated into the mine development design. A programme of boreholes and seismic work to support the MTS design work has commenced. Geotechnical drilling to help inform the shaft design at Lockwood Beck is also underway.

Shaft sinking

AMC is continuing detailed design of the shafts with a focus on completing the foreshaft component of the scope. Diaphragm walling rigs are due to be mobilised to site in the third quarter of 2017 to commence work. Planning for securing the winding equipment required for main shaft sinking activities has been completed and delivery of the equipment is on schedule. The contractor continues to expand its implementation team in the UK. The AMC team in the UK is co-located in the Sirius' office and a strong working relationship is being developed.

Sales and marketing

Commercial discussions remain ongoing in the key growth markets of Europe, Brazil, South East Asia and Africa. Each of these opportunities represents material volume opportunities in major long-term markets for Sirius. The Company is encouraged by the increasing market interest and positive engagement from multiple parties in these key markets.

Agronomy

The agronomy programme continues to validate the four cornerstones of the POLY4 value proposition: efficiency, effectiveness, flexibility and sustainability. During the quarter, 15 trials were completed and are being processed and 20 new trials were commenced on barley, cabbage, chilli peppers, corn, soybean, cotton, grape, grasslands, onion, potato, rice, tobacco, tomato and turf in Brazil, China, India, Ireland, UK and United States.

Corporate

The Company has obtained a Premium Listing on the London Stock Exchange and was recently added to the FTSE 250 index. Focus is now on planning and preparation for the stage 2 financing process.

The Sirius Minerals Foundation (renamed from the York Potash Foundation), the independent charity set up as a community fund in 2012 to spend a share of revenues from Sirius Minerals' Woodsmith Mine, has launched its first grant programme. This is after receiving its first funding of GBP2 million from the Company. In the first funding year, the trustees of the Foundation are prioritising an initial grant giving programme of awards between GBP500 and GBP5,000. This first programme is intended to help assess initial interest in funding initiatives throughout the Project area.

For further information, please contact:

 
 Sirius Minerals Plc   Tristan Pottas                  Tel: +44 845 
  Investor Relations    Email: [e-mail]       524 0247 
  Manager 
--------------------  ------------------------------  ------------- 
 Media Enquiries       Jos Simson, Mike                 Tel: +44 20 
  Tavistock             Bartlett,                         7920 3150 
                        Emily Fenton 
--------------------  ------------------------------  ------------- 
 

About Sirius Minerals Plc

Sirius Minerals Plc is a fertilizer development company focused on the construction and development of its North Yorkshire polyhalite project in the United Kingdom. It believes the Project represents the world's largest high-grade known deposit of polyhalite, a multi-nutrient form of potash containing potassium, sulphur, magnesium and calcium. Incorporated in 2003, Sirius Minerals Plc's shares are traded on the London Stock Exchange's Main Market. Further information on the Company can be found at: www.siriusminerals.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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June 29, 2017 02:01 ET (06:01 GMT)