Monday , August 15 2022

Sirius Minerals Expands Transport Contract with Strabag – Financial News


LONDON (Alliance Nevs) – Sirius Minerals PLC announced on Monday that it has extended its contract with the Austrian company Strabag AG for the Voodsmith mine in North Yorkshire.

The Strabag contract now includes the procurement, engineering and construction of the fitting of a system for the transport of minerals. It also includes equipment for the transport system for the transport and maintenance of the infrastructure, as well as other services related to the transport operations of mineral transport.

The mineral transport system will carry polyhallite from Sirius Minerals, 360 meters underground at the Voodsmith mine, all the way to its mining facility in Vilton, Teeside.

The transport system will be 37 kilometers long and designed to handle 20 million tonnes of polyhydrates annually.

The price of the fitting of the mineral transport system was not disclosed, although Sirius Minerals said it was in line with the estimated total cost estimation of the capital. More than 50% of the fitting price is on a fixed or lump sum basis, while the rest is based on estimated prices.

This is the final procurement contract for the second phase of the mining debt financing process. An agreement on a mineral transport system will be reviewed by lenders in order to determine the capital financing required for the project.

Strabag and Sirius Minerals signed a contract for the construction and construction in September, and Strabag builds two and three-wheel systems for the transport of minerals. The cost of the contract was higher than the original estimated due to the increase in the internal diameter and thickness of the tunnel cover and the transfer of the risk of construction and delivery to Strabag.

As such, the demand for capital financing has increased to between $ 3.4 billion and $ 3.6 billion from $ 3 billion.

However, Sirius Minerals thinks that USD3 billion debt debt financing is "the appropriate level of debt" and does not require it to increase it.

Final letters of promise from lenders are expected in December and January, and the financial completion of Phase 2 funding will occur in the first quarter of 2019.

"Our efforts are now focused on the successful execution of our funding plan in order to fully fund the construction of our multi-year polychemical project," said Sirius Minerals Executive Director Chris Fraser.

Shares in Sirius Minerals dropped 1.8% in the morning to 23.45 pence on Monday.

Anna Farlei; [email protected]

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