Potash fund set to invest millions in local projects

THE MINING company proposing a new mine between Whitby and Scarborough has announced the establishment of a new community fund which would contribute between £3-9million per year for local community projects.

The community fund will be independently administered by the York Potash Foundation which has been set up to support community projects ranging from bursaries, scholarships or skills training for local people to public realm improvements, environmental initiatives and community building projects.

Chris Fraser, Managing Director and CEO of Sirius Minerals said: “York Potash is a world-class project of national importance and the Foundation provides a direct and lasting way to deliver significant funding for the local community in the project area.

“The creation of the Foundation has been a key component of our thinking from the early stages of the Project. The Board and the York Potash team are delighted to establish this important legacy for the local area.”

An initial ‘start up fund’ of £2 million will be paid into the Foundation by York Potash on the formal commencement of main construction, with further annual payments commencing once mining operations start.

A binding contract will ensure that York Potash pays 0.5% of annual revenue to the Foundation.

On current assumptions from the company’s recent Detailed Scoping Study this would amount to approximately £3million per year in the initial production phases and up to £9million per year if phase two production levels are reached.

The York Potash Foundation will be overseen by seven Trustees who will ultimately be responsible for the evaluation and approval of funding.

Details of the Trustees will be announced as they are appointed but are expected to be drawn from different areas of expertise.

Further details on the Foundation will be available on the company’s website www.yorkpotash.co.uk.

Details of locations and planning applications for a future mine head and associated infrastructure are yet to be submitted.