Sirius Minerals Plc (LON:SXX) announced today that it has entered into a design and build contract with DMC Mining Services UK Ltd and DMC Mining Services Ltd, both subsidiaries of KGHM Polska Miedz SA (“KGHM”), for the construction of the four shafts required for its polyhalite project in North Yorkshire. DMC Mining Services (“DMC”) is one of the world’s leading shaft sinking and mining contractors.
Improved shaft sinking methodology opens opportunities to accelerate first polyhalite by up to six months
* Design and build contract for the construction of all shafts has been entered into with DMC
* Proven SBR systems to be used for the construction of the deep shafts for Sirius
* DMC incentivised for early completion vs existing target price and schedule guidance
Sirius has been in extended discussions with AMC UK Ltd (“AMC”) in respect of finalising the shaft sinking contract following the “notice of award” in July 2017 which anticipated execution of a finalised contract shortly afterwards. Due to protracted discussions with AMC regarding commercial arrangements Sirius engaged with DMC and other shaft sinking companies in parallel to consider alternatives.
Through this process, it has become clear that DMC, with their extensive and proven shaft sinking experience, are a strong construction partner for Sirius and will bring technical opportunities and a commercial partnership that can unlock potential savings in the construction schedule. Sirius has therefore entered into a design and build contract with DMC and has terminated ongoing arrangements it had for the shafts with AMC.
Chris Fraser, Managing Director and CEO of Sirius Minerals plc, comments: “Sirius continually seeks opportunities to use innovations and a commercial approach to accelerate development and unlock value. DMC has proven, world leading experience using Herrenknecht SBR technology on deep shafts and represents a strong partner, commercially aligned to our success. We are confident that they can deliver the North Yorkshire polyhalite project shafts significantly earlier than all previous expectations and we look forward to working with the team.”
Graham Buttenshaw, Managing Director of DMC, comments: “We are excited to be partnering with Sirius on this world-class project and are confident of leveraging our leading technology and experience to accelerate development of the mine and enable Sirius to bring its sustainable multi-nutrient fertilizers to the market earlier than previously planned.”
