Sirius Minerals cuts 300 jobs, seeks alternate funding

(Sharecast News) - Sirius Minerals will cut 300 jobs at its Woodsmith mine in North Yorkshire as it looks to cut costs and identify alternative methods for funding construction.
Speaking to The Times on Monday, chief executive Chris Fraser said the company could opt to raise smaller amounts of money than it had initially planned in order to fund individual elements of the mine's development.

This strategy could include securing separate funding for projects such as the construction of deep mine shafts and other elements that the banks financing the project and bond market were "least comfortable with", before Sirius seeks funds for other parts with lower perceived risk.

Plans for alternate funding and the decision to axe hundreds of jobs come after the fertiliser developer launched a strategic review on 17 September.

The review was launched after Sirius cancelled a $500m bond sale, pinning the blame on poor market conditions. The bond sale had been crucial to unlocking a $2.5bn credit facility with JP Morgan that was needed for the construction of its Yorkshire mine.

At the time, the FTSE 250 company said it had enough funds to continue operating for six months but would slow down construction at Woodsmith.

Fraser also said Sirius could scrap plans for a third tunnelling machine as it searches for ways to reduce costs.

Sirius Minerals shares were up 2.3% at 3.73p at 1050 BST.