MAJOR proposals for a £1.5bn fertiliser mine could cause a regional skills shortage and halt an existing company’s multi-million pound expansion, it has been claimed.

Sirius Minerals’ York Potash Project, planned for a site near Whitby, will move significantly close this week.

Redcar and Cleveland Council are due to approve the mine and a Teesside-based transport system for the development, which Sirius says will create and support thousands of jobs by extracting up to 13 million tonnes of the fertiliser polyhalite every year.

However, rival mining firm ICL Fertilizers, based at Boulby, east Cleveland, just 12 miles from Whitby, says Sirius’ proposals should be moved further away from its site.

The company, which has operated in the region since the 1970s, fears the new mine could put a cap on the North-East skills pool, cause it to be blamed for underground subsidence, and limit its own investment in polyhalite.

The firm, known by many under its previous Cleveland Potash name, is already mining polyhalite, after previously announcing a £38m investment, backed by a significant slice of Government Regional Growth cash.

Last month, The Northern Echo also exclusively revealed it was launching £50m plans to build a granulation plant and ramp up production of polyhalite as it looks to mine about 600,000 tonnes by 2018.

The factory could open in three years, turning hundreds of thousands of tonnes of fine polyhalite into granules it says is preferred by farmers, and bosses have also reiterated proposals to extend its mine by at least another 40 years.

However, according to the council’s report, ICL has a number of objections to Sirius’ plans for polyhalite.

It said: “From this mine, there is capacity to produce more than one million tonnes of potash products each year, and reserves of polyhalite could be as high as one billion tonnes.

“The proposed boundary includes an area at Newholm-cum-Dunsley, near Whitby, which is in the existing approved planning boundary for Boulby, and ICL are concerned about the effects of any polyhalite mining in this area and on future workings.

“They consider it extremely undesirable two different companies working in the same area at the same time should be permitted, and ICL is also concerned they could be incorrectly blamed for any subsidence.

“It suggests the York Potash mine should, if at all, be re-located further south where it would not interfere with the longer term expansion of Boulby, and suggests workers would be targeted at Boulby, leaving its existing operation seriously understaffed.

“If Cleveland Potash embarks on its own dedicated polyhalite granulation plant the possibility of skilled and trained worker migration is a genuine risk and threat to the business.”

Sirius wants to mine the fertiliser from underneath the North York Moors National Park and use an underground tunnel to send it to Wilton, near Redcar, for distribution.

It already has a number of agreements with international companies to supply hundreds of thousands of tonnes of polyhalite every year.

They include Sinoagri, one of China's largest fertiliser distributors, which is expected to receive 500,000 tonnes of polyhalite every year in a ten-year partnership.

Bosses say its project, which has suffered delays due to environmental concerns, will initially deliver an annual 6.5 million tonnes of polyhalite, with the figure rising to 13 million tonnes after six years.

It added 1,040 direct jobs will be created, with a further 1,010 supported in the construction and development phase, and bring exports valued at £1.2bn.

The project also requires approval from North York Moors National Park Authority, but a Redcar and Cleveland Council report said it benefits outweighed environmental concerns.

It added: “The project would make substantial contributions to direct and indirect employment, the value of goods and services produced in the area, and national Government tax.

“It would have significant positive economic benefits through employment and output and through the supply chain.

“It would also result in an increase in GDP; a nationally significant reduction in the trade deficit; and more than 1,000 high value direct jobs, with many more in the supply chain.”

Sirius is also waiting on separate supporting applications for a material handling site, at Wilton, and a harbour, at Bran Sands, in Teesside.

But plans for temporary accommodation for construction staff and an extension of Whitby’s park and ride site, which the company says will be used by its future workforce, have been approved.

According to details in the council report, work to prepare and build the mine will take 58 months, with its transport system taking up to 39 months.

It added work on its material handing site will last 29 months, with 19 months needed to build its harbour.

The mine and transport systems plans will be discussed by Redcar and Cleveland Council’s regulatory committee, on Thursday, April 23.

See tomorrow's Northern Echo for an update on ICL's £38m polyhalite development.