Improved shaft sinking methodology opens opportunities to accelerate first polyhalite by up to six months.
Design and build contract for the construction of all shafts has been entered into with DMC
Proven SBR systems to be used for the construction of the deep shafts for Sirius
DMC incentivised for early completion vs existing target price and schedule guidance
Sirius Minerals Plc (“Sirius” or the “Company”) has announced that it has entered into a design and build contract with DMC Mining Services UK Ltd and DMC Mining Services Ltd, both subsidiaries of KGHM Polska Miedz SA (“KGHM”), for the construction of the four shafts required for its polyhalite project in North Yorkshire. DMC Mining Services (“DMC”) is one of the world’s leading shaft sinking and mining contractors.
Sirius has been in extended discussions with AMC UK Ltd (“AMC”) in respect of finalising the shaft sinking contract following the “notice of award” in July 2017 which anticipated execution of a finalised contract shortly afterwards. Due to protracted discussions with AMC regarding commercial arrangements Sirius engaged with DMC and other shaft sinking companies in parallel to consider alternatives.
Through this process, it has become clear that DMC, with their extensive and proven shaft sinking experience, are a strong construction partner for Sirius and will bring technical opportunities and a commercial partnership that can unlock potential savings in the construction schedule. Sirius has therefore entered into a design and build contract with DMC and has terminated ongoing arrangements it had for the shafts with AMC.