PLANS to build the UK's first potash mine in more than 40 years look set to clear final planning hurdles after the Government said it would not scrutinise the scheme.

The announcement comes days after Sirius Minerals dropped by 12.5 per cent, after revealing the £1.7bn mine and in the North York Moors National Park, near Whitby,and minerals transport system to Teesside could face a planning inquiry despite key elements of the project gaining planning permission.

The firm issued a stock market statement saying it had been notified by the planners that Secretary of State for Communities and Local Government has chosen not to call-in the project planning applications.

A spokeswoman for Sirius Minerals, which had said it was unnecessary to subject the controversial scheme to further scrutiny, declined to reveal whether a public inquiry into the applications would have caused issues for the firm.

Environmental campaign groups, including the North Yorkshire Moors Association, which had been calling for a Government inspector to study the proposals, are understood to be dismayed by the decision.

The firm added it expected to receive final decision notices for the mine and mineral transport system to Teesside from both the park authority and Redcar and Cleveland Borough Council, for the materials handling facility from RCBC, and for temporary construction accommodation and a park and ride facility from Scarborough Borough Council before the end of September.

The firm's managing director Chris Fraser said: "This is yet another positive step forward on our pathway to developing the project and increasing shareholder value."