Home / Business / Sirius Minerals: The individuals who spent 1000’s on a Yorkshire mine

Sirius Minerals: The individuals who spent 1000’s on a Yorkshire mine

Nigel Howard and Andrew Davies have both invested thousands of pounds in Sirius Minerals' sharesPicture copyright
Nigel Howard/Andrew Davies

Picture caption

Nigel Howard (L) and Andrew Davies (R) invested 1000’s of kilos in Sirius Minerals’ shares

For Nigel Howard, the possibility to put money into the largest mine to be constructed within the UK for a technology was too good a chance to overlook.

The £4bn mission – to dig up a mineral utilized in fertilising crops from beneath the North York Moors Nationwide Park – would probably create 1000’s of jobs for a area with the very best unemployment charge in England and Wales.

So satisfied was Mr Howard of its deserves that the 76-year-old native man cashed in his whole £30,000 pension pot to purchase shares in Sirius Minerals, the corporate behind the large fertiliser scheme.

Now, nonetheless, like 1000’s of different particular person buyers, the pensioner finds himself caught in a gap he cannot get out of.

“It appears as if we’re in dire straits with what is going on on,” mentioned Mr Howard.

This week, Sirius Minerals’ share value plunged by 60% when it was pressured to tug plans to boost $500m.

The cash was key to Sirius’ future. Securing the funds would unlock an additional $2.5bn (£2bn) in financing from US funding financial institution JP Morgan.

Sirius has launched into a strategic evaluation, and except the corporate finds one other solution to increase the cash in subsequent few months, its future appears bleak.

“We will not do something at current,” mentioned Mr Howard, who initially purchased shares at 24p every. “We will not pull out as a result of [the share price] is principally subsequent to nothing.”

Picture copyright
Sirius Minerals

Picture caption

Sirius Minerals has begun development on the £4bn fertiliser mine mission

Mr Howard mentioned that earlier than the Sirius funding “I used to be simply content material for a lifetime of retirement and simply take pleasure in my pensions. However I am now right down to the conventional previous age [state] pension”.


The corporate has 85,000 particular person shareholders. About 10,000 of those are positioned in areas surrounding the Teesside mission, the place many individuals little question invested due to the regenerative advantages for the North East.

At 5%, the area has the very best unemployment charge in England and Wales, in accordance with the Workplace for Nationwide Statistics. Sirius mentioned the mission would generate about 4,000 jobs.

The plan is to develop the Woodsmith mine, close to Whitby, to present the corporate entry to an enormous deposit of polyhalite, which can be utilized as a fertiliser.

Picture copyright
Sirius Minerals

Picture caption

Polyhalite can be utilized as a fertiliser for crops

The polyhalite shall be transported alongside a 23-mile tunnel and conveyor belt to Teesside close to the previous Redcar steelworks, which closed in 2015 and price 2,200 folks their jobs.

When Andrew Davies, 59, and his buddy had been weighing up whether or not to put money into Sirius six years in the past, the enhance to the native financial system was an element of their choice.

“A lot of the locals had been actually, actually blissful as a result of clearly it’s regeneration of their space which is implausible,” he mentioned.

“As a result of the share value on the time was fairly low, we thought it had nice progress, it will complement our pensions and help a British firm as effectively.”

Luckily, Mr Davies purchased some Sirius shares once they had been lower than a penny and the very best he paid was 7p.

Nonetheless, he has put £60,000 of his cash into the corporate. “I am clearly very upset as to what has gone on,” he mentioned.

Conserving money

It additionally emerged this week that the federal government wouldn’t present a $1bn mortgage assure to Sirius. “The federal government in actuality needs to be backing this,” he mentioned. “It’s a large enhance for the nation.”

Financially, Mr Davies mentioned it hasn’t created difficulties for him. “Proper from day one, I’ve made certain that my investments do not impair any of my pensions as such, as a result of on the finish of the day this was one thing that was to boost my pension to not take a danger with my pension.”

However he cannot actually do a lot along with his Sirius shares.

Picture copyright
Sirius Minerals

Picture caption

The Woodsmith mine web site close to Whitby

In an effort to preserve money, Sirius has slowed work on the web site the place 1,200 folks have been working, the overwhelming majority of that are employed by third celebration development companies.

Sirius had hoped to begin producing polyhalite subsequent yr. It has struck offers to produce 11.7 million tonnes of it a yr to companies.

Nevertheless, it’s but to sink two shafts to a depth of 1,500 metres on the Woodsmith mine to permit for manufacturing.

The race is now on to seek out an investor to fund the following phases of improvement – or perhaps even a purchaser for the enterprise.

Picture copyright
Brian Pieters

Mr Davies goes to hold onto his shares. “There is no such thing as a level in promoting them now at such a loss. Chances are you’ll as effectively maintain maintain of them now and consider the Sirius line that at some point it’s going to come to fruition.”

Mr Howard mentioned the state of affairs is “very distressing particularly for myself and my spouse at our age”.

He mentioned “We all know that purchasing shares and shares is a bet however this appeared so, so good they usually’ve already received large orders within the pipeline from different international locations.

“Personally, I do not suppose it’s going to fail, I hope not anyway. I believe we’re simply in for a tough, rocky trip for a number of years.”

Publish BySource link

About shoaib

Check Also

Medicine corporations attain $260m US opioid settlement

Picture copyright Getty Photographs 4 medication firms have reached a $260m (£200m) cope with two …

Leave a Reply

Your email address will not be published. Required fields are marked *