Sirius Minerals tables new Section 106 deal

With less than three weeks to go before the meeting which will decide the fate of Sirius Minerals' York potash project, the local authority has published a number of important background reports on its website. It's a normal part of the planning procedure, but the recent share price surge is on hold as caution takes over as the big day approaches.

In a letter last week to Andy Wilson, chief of the North York Moors National Park Authority (NYMNPA), Sirius boss Chris Fraser spelled out a "significantly enhanced" final draft of the crucial Section 106 (planning obligation) proposal for the project.

After months of talks, and with the special planning committee at Sneaton Castle, Whitby, booked for 30 June, Sirius has proposed total Section 106 contributions of as much as £175 million, including £20 million during the construction phase and millions more on tree planting, promotion of tourism in the region and highway improvements.

"The revised Section 106 proposal... is designed to address officers' concerns relating to the residual harm that can be addressed through Section 106 contributions," said the firm Wednesday.

Planning officers had already taken account of these and other reports when they decided on an open recommendation on the planning application.

"We are hopeful of a positive outcome for Sirius - especially after the planning officers gave an open recommendation and could find nothing material to deny Sirius its application," said WH Ireland analyst Paul Smith, who sticks with his 'buy' rating and 37p price target.

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