WORK to build a multi-billion pound fertiliser mine could start this year.

Sirius Minerals’ has announced preferred contractors for its York Potash Project, near Whitby.

Bosses hope to start production in 2021 and say operators have been selected to sink shafts and develop a mineral transport system.

The company is continuing to finalise funding arrangements for the scheme, but The Northern Echo understands that could be concluded before the end of the year, allowing workers to get on site.

The firm, which aims to create and support thousands of jobs by extracting the multi-nutrient fertiliser polyhalite, has also agreed a new supply deal with a Chinese operator.

Officials say Yunnan Dian Huang Peony Industrial Group will take polyhalite over a ten-year period.

Referring to its preferred contractors, Chris Fraser, Sirius’ managing director and chief executive, said AMC UK, a joint venture between Thyssen Group and Redpath Group, has been chosen to develop the mine.

He added the Hochtief Murphy joint venture has been selected to build the mineral transport system, which will take polyhalite underground to a handling site at Wilton, near Redcar.

He said: “This is the culmination of a huge amount of work by successful and unsuccessful bidders and we are delighted to be moving forward with our selected partners.”

Mr Fraser also confirmed its Chinese supply deal, saying Dian Huang’s agreement will ramp up to one million tonnes of polyhalite annually over the first six years.

He added: “There is great potential for our product in Yunnan and China, so firming up this supply arrangement is another positive step for us.

"We look forward to working with Dian Huang for many years to come and our polyhalite playing a significant role in more sustainable agriculture.”

Last month, The Northern Echo reported how Sirius had discovered greater reserves of polyhalite.

Bosses said their probable stock now stands at 280 million tonnes, which is higher than a previous 250 million tonne estimate and of better quality.

They added fresh tests have also shown polyhalite, reputed as a rich provider of crop growth due to its potassium, magnesium, sulphur and calcium nutrients, is capable of bolstering chilli pepper, tea and oilseed rape yields.

Earlier this year, Mr Fraser told The Northern Echo Sirius was targeting up to £2bn earnings, before taxes and interest, once the mine is fully operational, confirming it wants to raise £2.4bn to fund the project through two stages.

He added the firm aims to produce polyhalite at $30 a tonne and potentially sell it for $200 a tonne.

The company will sink shafts at the former Doves Nest Farm and move polyhalite to Wilton on a conveyor belt, where it will be stored and distributed.

A decision on a harbour, earmarked for the mouth of the River Tees to oversee exports, is expected from the Government this year.