A COMPANY behind a multi-billion pound fertiliser mine says the project is closer than ever after the government backed its plans.

Sirius Minerals has received ministers’ approval for a harbour.

The loading site, on the mouth of the River Tees, is expected to ship Sirius’ polyhalite fertiliser from its York Potash mine, based near Whitby.

Bosses say the harbour will oversee distribution of the polyhalite, reputed as a rich provider of crop growth due to its potassium, magnesium, sulphur and calcium nutrients, after it is transported via an underground conveyor belt to a handling site, at Wilton, near Redcar.

The planning decision means Sirius now has all major approvals to build its mine on the former Doves Nest Farm, near Sneaton village.

Officials hope to start production in 2021 and say construction and operation of the mine will create and support thousands of jobs.

Chris Fraser, Sirius’ managing director and chief executive, said the government’s endorsement was another fillip for the company.

He added: “We are closer than ever to delivering this world-class project.

“We’re delighted to have secured this approval and our team is now actively engaged in the financing phase.”

The Northern Echo previously reported how Sirius had revised construction budgets, saying it will now cost less to build the mine than first predicted.

According to latest figures, the company needs $2.91bn (£2.1bn) to construct the mine.

Bosses had unveiled a definitive feasibility study, which said they needed to raise $3.5bn (£2.4bn) to fund the project through two stages.

However, after assessing fresh information from contractors, they have now cut estimates.

According to the adjusted plans, its first funding stage will need to raise about £800m, down from an initial £1.1bn, with the vast majority of the cash earmarked for development of the mine site.

The second funding phase is now valued at £1.3bn, lower than an original £1.44bn estimate.

The firm is continuing to finalise funding arrangements for the scheme, with prospective lenders involved in initial talks over stage two backing.

However, The Northern Echo understands some of the first agreements could be concluded before the end of the year, allowing workers to get on site.

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, which will take the polyhalite to Wilton.

Mr Fraser said AMC’s proposals helped cut costs.

He added: “Its plans are more effective and reduce the amount of temporary construction equipment, such as winding towers, and (support) early use of permanent equipment.”

Earlier this year, The Northern Echo revealed Sirius had discovered greater reserves of polyhalite.

Bosses said their probable stock now stands at 280 million tonnes, higher than a previous 250 million tonne estimate.

They added fresh tests also showed polyhalite was capable of bolstering chilli pepper, tea and oilseed rape yields.