Sirius Minerals Regulatory News (SXX)

18 June 2015

Sirius Minerals Plc

Approvals update - Officers report published

§ North York Moors National Park Authority Planning Committee Report released

§ Consistent with previous guidance, the report contains no officer recommendation

§ Officers' policy conclusion is that they do not believe the development represents exceptional circumstances and that the economic benefits and mitigation/compensation do not outweigh the harm caused

§ Officers acknowledge the high level of mitigations, the significance of the economic and social benefits which could attain national significance and the very strong local support

§ Special Planning Committee to meet, as previously announced, on 30 June 2015 to determine the application

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") provide an update on the approvals process for the York Potash Project ("the Project").

Planning officers at the North York Moors National Park Authority ("the Authority") have today published their planning committee report ("the report") on the Project's mine and mineral transport planning application. The 229-page report is publicly available and is published on the Authority's website (http://www.northyorkmoors.org.uk/planning/york-potash).

The report will be presented to members of the Authority at its special planning committee meeting on 30 June 2015. Members of the Authority will make a decision on the application, based on their own views of the planning balance, and have the option to resolve to approve, defer a decision or refuse the application.

Chris Fraser, Managing Director and CEO of Sirius, comments:

"Responsibility for balancing the various issues related to this application rests with the members of the Authority and we believe the case for approval is very strong because the Project represents a once in a generation opportunity.

"As recognised in the officers' report, the York Potash Project can bring significant economic and social benefits to the economies of the local and regional area. The application also includes extensive mitigation, compensation and safeguards.

"We believe our planning case stands up to scrutiny and we remain determined to pursue the positive planning decision that will allow us to deliver this Project and all of its benefits."

Extracts from the report

As previously announced, the report does not include a recommendation from the planning officers and leaves the determination open to the members of the planning committee. The report is very detailed and to understand the report its contents should be read in full. Some key comments from the 'planning balance' section of the report include:

"Officers have concluded that the application has a clear and fundamental conflict with both local and national policies and that the review of the ES demonstrates that the EIA process undertaken by the applicant's consultants has resulted in an underestimation of the environmental effects in respect of certain environmental topics."

"It is also clear that the extent of the mitigation proposed during the operational period in terms of mine design, travel plan, means of transporting the mineral and the welfare building design are significant and go a long way towards moderating the impacts of what is a significant industrial development within a highly sensitive landscape. It is also likely that the project will bring significant economic and social benefits to the economies of the urban areas beyond the National Park boundary and if successful the scale of these benefits could attain national significance. Members will be aware that great weight should be placed on the economic benefits of mineral extraction and it is also the case that there is very strong local support for the proposed development."

"These are very significant planning matters which inevitably create a conflict between the public interest of protecting the national asset which is the National Park and the public interest in the economic and social improvement of the region. Members will need to individually assign weight to these opposing issues and reach their own planning balance."

"Officers conclude that the policy conflict with the Development Plan and national policy is such that the proposal does not represent Exceptional Circumstances, which is the highest bar that planning policy requires. It is therefore considered that the economic benefits and extent of the mitigation/compensation offered through planning obligations do not outweigh the extent of the harm and clear conflict with the development plan. The greater public interest is considered to be that of the statutory National Park purposes which protect the North York Moors for the benefit of the nation. In reaching this view, officers acknowledge the unique role of the National Park Authority, which does not have a direct economic development purpose but which has at the core of its planning role, the statutory responsibility to conserve and enhance the North York Moors for the enjoyment of present and future generations." 

The Company's position on these conclusions

As set out in the report, the Company disagrees with certain policy interpretations reached by the officers and believes that the application meets the major development policy set out in the National Planning Policy Framework. The Company believes that exceptional circumstances have been demonstrated and that the Project is in the public interest due to the substantial scale of the benefits and extent to which the environmental effects have been mitigated or compensated for. The Company believes the proposals will bring lasting benefits to the National Park, to the regional and national economies, and are strongly consistent with the proper application of the national and local policies.

The Company does not accept that its Environmental Statement underestimates the environmental effects of the development. There have been, and remain, certain areas where there are differences of professional judgement between the consultants used by the Authority and those of the Company. It is important to highlight the responses from the key statutory consultees - the Environment Agency, Natural England and the local Highways Authority. Aside from Natural England's objection on the grounds of construction landscape impacts, which it states are to be balanced against the benefits of the Project, there are no objections to the development proceeding from any of these key bodies.

In addition, as announced on 10 June 2015, the Company's revised Section 106 proposal was designed to address officers' and their adviser's concerns relating to the residual harm that can be addressed through Section 106 contributions. The report identifies the extent to which the officers believe that these proposals can address the residual concerns that they have.

The planning case for the York Potash Project will now go before the members of the planning committee on 30 June 2015 for a decision, as previously announced. The Company is confident that its application and the case set out in the documentation will be given due and proper consideration by the members. A summary of the Company's planning case is available on the Project website (http://yorkpotash.co.uk/site/assets/files/1872/yp_summary_doc_web.pdf).

In the event of a refusal or a deferral by the committee the Company intends to submit an appeal to the Planning Inspectorate. This would result in a Public Inquiry being held by a Planning Inspector, who in turn would make a judgement as to whether the appeal should be upheld. A final decision would be made by the Secretary of State for Communities and Local Government. The Company is fully funded for this eventuality.

Special Planning Committee Meeting

The special planning committee meeting will be held at Sneaton Castle in Whitby, commencing at 10am on 30 June 2015. It is a public meeting, although the Authority has already allocated all the public seats on a first come first serve basis. It is understood that the Authority is seeking to relay proceedings online via a live stream.

As previously announced, the Company's ordinary shares will be suspended from trading at 7:30am on 30 June 2015, pending the outcome of that meeting and a subsequent announcement to the market. Trading in the Company's shares will resume as soon as practicable following the decision being announced.

The Authority has reserved the following day (1 July 2015) to continue the meeting if no resolution is reached on 30 June 2015.

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About Sirius Minerals Plc

Sirius Minerals is the potash development company focused on the development of the York Potash Project in the United Kingdom, which has the world's largest and highest grade deposit of polyhalite, a multi-nutrient form of potash containing potassium, sulphur, magnesium and calcium. Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at: www.siriusminerals.com.