MINING bosses say they are closer to completing their “long journey” after unveiling a £1bn finance plan.

Sirius Minerals has launched a funding drive to begin work on its York Potash Project.

The company aims to extract the fertiliser polyhalite from land near Whitby and says its plans mean construction can start “as soon as possible.”

Production is expected to get underway in late 2021.

Officials say their financing plan will pave the way for building work, with contractors for the mine and a separate transport system already chosen.

The funding proposals, which remain subject to shareholder approval, will see the issuing of new shares to raise up to £400m and convertible bonds to bring in a further £350m.

The move comes after Australia’s richest woman, Gina Rinehart, backed Sirius through her Hancock British Holdings enterprise to the tune of £250m ($300m).

Chris Fraser, Sirius’ managing director and chief executive, said the announcement was a landmark moment in the company’s endeavours.

He said: “This package provides the comprehensive stage one financing required to start construction of our project.

“This will create jobs in North Yorkshire and Teesside, and represents a significant business investment in the UK.

“It’s been a long journey, and we still have some way to go, but I want to thank everyone who has supported the company in its efforts to reach this major milestone.

“Once we have received shareholder approval, we can get on with the job of delivering this compelling proposition.”

The Northern Echo understands Sirius is continuing to finalise funding arrangements with other prospective lenders for a second stage of financing.

The company has all major approvals to build its mine, including backing for a harbour on the River Tees to ship fertiliser to customers around the world, and an underground conveyor belt system, which will transport potash to a handling site, at Wilton, near Redcar.

Once operational, the development is expected to create and support thousands of jobs, with polyhalite reputed as a rich provider of crop growth due to its potassium, magnesium, sulphur and calcium nutrients.

AMC UK, a joint venture between Thyssen Group and Redpath Group, was previously revealed as the preferred contractor to develop the mine, with the Hochtief Murphy joint venture selected to build the mineral transport system.

Sirius already has a number of supply agreements for York Potash, including a deal with a US-based firm to annually dispatch 1.5 million tonnes for seven years, which could be extended further across two five-year periods.

Tests previously showed the firm had discovered greater amounts of polyhalite – up to 280 million tonnes – and found the mineral was capable of bolstering chilli pepper, tea and oilseed rape yields.