"No basis for a refusal" as Sirius Minerals waits

Yesterday, we revealed how Sirius Minerals chiefs had tabled an improved Section 106 (planning obligation) proposal for its York potash project ahead of a crucial meeting of the special planning committee at the end of this month. Now, joint house broker WH Ireland has had time to analyse the underlying messages following a review of the Sirius proposal.

"We have reviewed the (lengthy) documents and have come to the conclusion that the basis on which Sirius has submitted its permitting proposal is sound and that the application meets the policy requirements and has addressed environmental concerns and does offer long-term benefits at a local, regional and national level," wrote WH Ireland's Paul Smith in a note to clients Thursday.

"When combined with the Section 106 payments to the area to mitigate for the development and the funding of the York Potash Foundation there are considerable benefits for both the visitors and the people who live and work in the area."

Smith believes it's clear that there is no alternative site for the mine head outside the National Park, and agrees with full production estimates of 13 million tonnes per annum (Mt/a). The project will also create lots of jobs in the area and, after the construction phase, operationally the impacts will be negligible.

"It should not be forgotten that Sirius has also set up a foundation and will put in £6m per annum at full production, generating ~£600m for the benefit of the local community over 100 years; a lasting legacy from the Sirius project," Smith points out.

Now, all attention swings to members of the North York Moors National Park Authority (NYMNPA) planning committee which sits on 30 June. "With an open recommendation and the direct and indirect benefits for the North York Moors and surrounding local communities we see no basis for a refusal of the permitting as proposed," writes Smith.

"There will obviously be some short-term effects as the mine and associated infrastructure is built, but most agencies now concede that operationally few people will know there is a mine in the area once the operation is commissioned. We retain our 'buy' recommendation ahead of the decision day."

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