What’s going on at Woodsmith?

  • Contributor information: CNP

1 October 2019

Tom Chadwick of the North Yorkshire Moors Association provides us with an update of the Woodsmith Mine we have been opposing in the North York Moors National Park.

Campaign for National Parks and the North Yorkshire Moors Association oppose the development of the Woodsmith Mine in the North York Moors National Park, because of the way it’s development would damage the special qualities, including the beauty and tranquility of this amazing National Park.

Sirius Minerals, the company behind the Woodsmith potash mine, saw a share price crash on September 17 this year when the company announced that they had abandoned the arrangements for the phase 2 funding, subsequently the shares fell to 3.7p..

Destruction of a beautiful landscape at the Woodsmith Mine. Photo credit: Tom Chadwick.

The company said in a financing and development update that they had £117m which would keep them going for a few months. Meanwhile they are to conduct a comprehensive review of the project.

This review will include revising the engineering schedules that are already in place and will result in a slowing down of the development. A review of the financing arrangements which will take some time to put into place will also be undertaken including seeking a major strategic partner for the project.

The company require $3 billion to complete the project which was to have been obtained through the issue of $500m of junk bonds, as a pre-requisite for borrowing the remaining $2.5 billion from J.P. Morgan the American investment bank. Sirius is entering the high risk period of development with a 37Km tunnel drive and the main shaft sinking. As a result of the failure to obtain phase 2 funding the company is in a very precarious position and in danger of folding up.

By Tom Chadwick

North Yorkshire Moors Association

What is Campaign for National Parks doing?

Campaign for National Parks has been working with the North York Moors Association to oppose the development of the Woodsmith Mine by Siriuss Minerals. We believe the development does not take sufficient regard for the special status of the amazing North York Moors National Park.

What can you do to help?

Campaign for National Parks needs your help, with your support we can keep up this fight. Become a friend today to help us look after the amazing National Parks. Use the links below to join us today!