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Potash project developer Sirius Minerals (LON:SXX) took another step towards getting its huge mine in Yorkshire off the ground - as the materials handling facility (MHF) in Teesside got the green light.
Shares advanced over 3% on the day to stand at 12.5p each.
The MHF will receive, granulate and store the polyhalite produced from the York project and will sit at the end of the mineral transport system, which received approval a week ago.
The decision was made by planners at Redcar and Cleveland Borough Council.
Chris Fraser, the managing director and chief executive of Sirius, told investors: "This is another important and positive step forward for the development of the York Potash project and the many jobs and benefits it can deliver to the region."
Shares in the firm were lifted last week after councillors unanimously gave the go-ahead for the mine and mineral transport system (MTS) part of the project, so approval pace has picked up in recent days.
However, two key application decisions remain.
These are the part of the 'straddling application' for the mine and MTS, which has been submitted to the North York Moors National Park Authority, and the application for the harbour facilities, which has so far been accepted for examination by the Planning Inspectorate.
The firm has previously said it expected a decision on these by the end of May.
The York project has an estimated pre-production capital cost of US$1.7bn.
It will be the first new potash mine in the UK for 40 years and the scope currently envisages a 13mln tonnes per annum (mtpa) operation constructed over two phases.
The first phase is designed to provide a 6.5 mtpa (million tonnes per annum) operation, which will then be expanded to 13 mtpa over some years.
It was in February last year that Sirius first outlined its blue-print for the underground conveyor-based system, known as the MTS, to transport the fertiliser from mine-site to port via five 7.5km tunnels, replacing the previously proposed pipeline.
The firm said the system not only improved the economics of the operation, but also reduced its environmental impact.
It said it removed all direct construction from designated and protected habitats and reducing costs by around US$10 a tonne while allowing for expanded output.
Fraser had told Proactive: "It allows us to remove all construction from designated environments so it's a real positive from a construction impact standpoint."
City broker Investec said on today's news it was not surprised the MHF had been given the nod since it was a development in an industrial area.
More important, it said, will be the granting of the transportation system permit across "pristine" countryside that will likely be contentious, regardless of the company’s efforts to cause minimal disruption.
Following that, Investec noted, will come major financing requirements, which would not be an easy hurdle in today’s markets.