British Steel's big win for Teesside joint venture terminal
Redcar Bulk Terminal and Woodsmith Mine, near Whitby, with Northern Powerhouse Minister Jake Berry, centre, recently marking the start of tunneling works for Sirius Minerals.
By Scunthorpe Telegraph | Posted: 9 Jul 2018
British Steel’s joint venture in the North East, Redcar Bulk Terminal, has secured a major handling deal on the back of a significant land lease.
Sirius Minerals Plc is progressing work on the extraction of polyhalite, at a deep mine close to Whitby, North Yorkshire.
It has now secured a long term lease for an area of land on the southern site of the port facility, which will be used to establish a large warehousing site to store the mineral, while also agreeing a lng-term material handling agreement to export up to 10 million tonnes of polyhalite annually through the terminal.
Garry O’Malley, RBT’s general manager, said: “This is excellent news and we’re delighted to be working with Sirius Minerals on a project of such regional magnitude.
“It’s another significant step forward in the continued resurgence of Redcar Bulk Terminal as a key partner in the regeneration of the South Tees site and wider Tees Valley economy.
“The closure of SSI clearly hit us hard but it’s not in the nature of Teesside people to give up. RBT is an integral part of British Steel’s UK operations, and this new business more than justifies their continuing investment as RBT is now back in profit with a healthy business pipeline.
“We’ve a hugely flexible operation and, coupled with ongoing investment in our port equipment and rail infrastructure, we’ve diversified our offer and continue to secure significant business in new markets. And we’re now working in partnership with a growing number of companies who see the incredible opportunities our business, and the Tees estuary, offer.
“We’ve great confidence in the future of this business and this site, borne out of announcements like today’s. British Steel has ambitious plans for Redcar Bulk Terminal as part of their growing Teesside operations and looks forward to continuing to play a significant role in the continuing success of this site and this region.”
Sirius Minerals’ state-of-the-art Woodsmith Mine will target the extraction of polyhalite, a unique type of potash and a multi-nutrient fertiliser.
The project area contains the largest, highest grade resource of polyhalite to be found anywhere in the world which will be extracted via two mine shafts. It will be transported outside of the National Park to Teesside on a conveyer belt system in an underground tunnel. It will then be granulated at a materials handling facility, with the majority being exported to overseas markets.
Sirius Minerals is aiming to achieve first product from the mine by the end of 2021, ramping up to an initial production capacity of 10 million tonnes per annum and then full production of double that.
Chris Fraser, managing director and chief executive of Sirius, comments: “We are pleased to enter into this arrangement which reduces the complexity of our construction programme and ultimately helps to simplify our stage two financing plan which is being finalised over the coming months.
“By working with a local partner, we can develop our project and also deliver benefits to an existing established business in the Tees Valley. The RBT facility has been underutilised since the closure of the steel works and this agreement will ultimately help us deliver tremendous economic benefits for the region.”
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