By Rod Nickel
NEW YORK, May 20 (Reuters) - Sirius Minerals PLC,the British company behind a controversial proposed potash mine,said it hopes to win a key regulatory approval this summer thatcould lead to production within four years.
Sirius aims to be the biggest producer of granulatedpolyhalite, which contains multiple crop nutrients such aspotash, sulfur and calcium.
The company is also awaiting results of a feasibility studythis summer before proceeding with the mine in England's NorthYork Moors National Park.
Polyhalite, unlike conventional muriate of potash (MOP),contains little chloride that is harmful to fruit crops. Thecompany expects to sell it at a huge premium over MOP, of whichthere is excess global mining capacity.
"We've got a product that is better for the environment andbetter for food productivity," said Chief Executive Chris Fraseron Wednesday on the sidelines of a BMO investorconference in New York.
There is no reason to delay the project just because thereis a surplus of the conventional potash form, he said.
Sirius' London shares have gained 83 percent this year as ofMonday's close. A national park authority committee willconsider on June 30 Sirius' application for the York Potashmine, which could produce 13 million tonnes annually, and itstransportation system.
Sirius would move ore underground by conveyor 36 kilometers(22 miles) to port, and build headframes below surface tominimize the $3-billion mine's impact on the park's moors andforest.
But Ruth Bradshaw, policy and research manager at Campaignfor National Parks, said the mine is incompatible with anational park.
"We're very concerned about the threat that this mine posesand the damage it will cause to landscape, biodiversity andrecreational activities," Bradshaw said.
York would be the UK's first new potash mine in 40 years.Israel Chemicals, the world's only polyhalite producer,said last year it would expand UK production.
Intrepid Potash owns polyhalite resources in NewMexico, but hasn't developed them because of polyhalite'sphysical hardness that makes it difficult to mine, andrelatively low potassium content.
"If for some reason, someone figures out how to turnpolyhalite into a highly marketable product, we're veryconfident in our ability to participate," said Intrepid CEO BobJornayvaz, in an interview.
Sirius has sales commitments for 6 million tonnes ofpolyhalite annually from buyers worldwide.
The company will soon look to raise $1 billion in equity anddebt, Fraser said. (Reporting by Rod Nickel; Editing by Phil Berlowitz)
