WORK to build the UK’s first potash mine in more than 40 years is just weeks away from starting.

Sirius Minerals told The Northern Echo construction of its York Potash project could begin in the opening months of 2017.

Bosses also confirmed the company is closing in on new export deals.

The company aims to extract the fertiliser polyhalite from land near Whitby, with production planned to get underway in late 2021.

York Potash has already been backed by Australia’s richest woman and Sirius officials are just days away from approval for a £1bn finance plan to ignite construction in earnest.

Chris Fraser, Sirius’ managing director and chief executive, confirmed engineers were poised to start, saying backing at a shareholder meeting later this month would free up cash for construction.

He said: “We are getting ready to start mobilising (for construction).

“One of the first things will be the road network, little things we need to do to start bringing the materials onsite for preparation.

“We are now at the end of the beginning; we are now in the building phase.”

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.

However, Mr Fraser said talks were ongoing with other international parties to further extend its reach.

He added: “We have got a lot of dialogue in various places around the world.”

If approved, Sirius’ funding proposals will see the issuing of new shares to raise up to By Steven Hugill Business Editor steven.hugill@nne.co.uk £400m and convertible bonds to bring in a further £350m.

Australia’s richest woman, Gina Rinehart, previously backed Sirius through her Hancock British Holdings enterprise to the tune of £250m.

Under the terms of the finance deal, Hancock will pay £205m for the rights to five per cent of gross revenue on the first 13 million tonnes of sales every year, and another one per cent for sales above the 13 million figure.

Hancock, a subsidiary of Hancock Prospecting, which has growing agriculture interests, will subscribe to ordinary shares in Sirius for another £41m.

York Potash could also receive support from China after it was included in a £5bn Government portfolio aimed at attracting fresh cash into British businesses.

Chancellor Philip Hammond said the mine, which is expected to create more than 1,000 direct jobs, could be pivotal in a new “golden era of UK-China relations”.

Sirius’ project was chosen as a potential Chinese investment by the Government alongside a scheme to regenerate parts of Sunderland, including the former Vaux Breweries site, into offices, leisure facilities and residential and retail space.

Mr Hammond said: “We have a major opportunity to open up investment.”

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

It has all major approvals to build its mine, including backing for an underground conveyor belt, which will transport potash to a Teesside handling site.