Sirius Minerals Plc is seeking US$2 billion in debt guaranteed by the U.K. government to advance its Woodsmith potash project in the country, saying the funds are important to its financial plan, the Financial Times reported March 6.
The company is set to sink 1,500-meter-deep shafts to mine polyhalite from the site, which is expected to begin production in May 2021.
"We feel like we have a project that's in line with what the government is trying to achieve in its industrial policy and we believe we have cross party support for the project to go ahead," CEO Chris Fraser said.
Sirius plans to secure about US$3 billion in bank loans this year. The funds will also go toward constructing a berth at the Teeside port 23 miles from the project.
To help with the planned financing, the company aims to sign off-take agreements covering between 6 million and 7 million tonnes by the middle of the year.
In October 2017, Sirius signed a polyhalite off-take deal with Wilmar Group unit PT Chemical Indonesia. The agreement has an initial seven-year term and a delivery schedule of up to 750,000 tonnes per annum in the seventh year.
