Sirius Minerals receives crucial document

Finally, Sirius Minerals has in its hand the decision notice from the North York Moors National Park Authority (NYMNPA) formally granting planning permission for its mine and mineral transport system application. It was over four years in coming, but the document now formalises the main part of the permitting process for the company's potentially enormous potash mine in Yorkshire.

Right now, Sirius is finalising its Definitive Feasibility Study (DFS), which it says should complete some time over the next few months. With all the planning approvals now in place, the firm could start digging now. But it needs money, lots of it, and first phase of the financing strategy is on track to be in place during the first quarter of 2016.

Estimates vary, but a fair figure to get the mine up and running is about £2.3 billion, according to Shore Capital. That's £1.86 billion for the first phase and £404 million for the second. Together with support from other government-backed agencies and senior debt, this potential funding will be "valuable", said the company.

And lengthy funding talks have already paid off. Government body Infrastructure UK last month awarded Sirius prequalification status, which could mean it helps secure cash needed to develop the fertiliser project.

In the meantime, the company is continuing value engineering work with a number of contractors in order to prepare for future construction. It also has one permit outstanding for the port development, but WH Ireland analyst Paul Smith doesn't anticipate any hold ups getting this next year.

"We are delighted to be through this key approvals process and to now be moving into the delivery phase of this world class Project," says managing director and chief executive Chris Fraser. "We look forward to beginning construction during 2016."

Says Smith: "Sirius can now move on to the delivery phase of its project and we expect the publication of the Definitive Feasibility Study shortly this quarter, which will lead into first phase financing in Q1 2016 and then site preparation and construction to begin shortly after. We maintain our Buy stance and 50p price target this morning."

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