Cleveland Potash Ltd (CPL) has commissioned further research into the proposed development of a manufacturing plant to process the mineral polyhalite from its Boulby mine. Polyhalite is a salt containing potassium, magnesium and calcium in a complex sulphate form. As a result of the additional research, CPL will not meet the timeframe established by the Department of Business, Innovation and Skills under which it was meant to receive a £13 million grant from the Regional Growth Fund. The UK government had agreed to provide funding for the production and processing of polyhalite due to its potential to significantly enhance the local economy.

CPL’s decision to waive the current grant so that it can pursue further research on the proposed facility does not affect the company’s operation of the Boulby mine, which continues to extract potash, rock salt and polyhalite. CPL began mining polyhalite in 2010, so becoming the first company in the world to mine, process and sell the mineral. CPL currently markets the processed polyhalite under the brand name “polysulphate” in the UK, Europe, US and South America through the global sales and distribution network of its parent company, ICL Fertilizers. Polyhalite is found in a kilometre deep seam off the north-east coast of England, beneath potash and rock salt seams that CPL has mined for over 40 years. CPL considers the polyhalite seam located in its mining lease area to be a strategic asset of the company, and intends to continue developing it to fully exploit its commercial potential.

CPL’s Managing Director Phil Baines explains: “In a project of this scale and complexity, it is vital that we and our parent company, ICL, are certain that the downstream processing of the polyhalite is both technically and financially viable. As a result, we have decided to conduct further detailed research into the design of the proposed processing plant. We regret that due to our additional research will not meet the timeframe required to obtain the Regional Growth Fund grant. Nevertheless, we are very grateful to the Department for Business, Innovation and Skills for their understanding, as well as for their continued support and assistance. As far as Boulby mine and our workforce are concerned it is business as usual. We are the only company in the world to successfully mine polyhalite, and we are intending to invest millions of pounds in additional mining equipment in response to increasing demand from customers in the UK and worldwide for our polysulphate fertiliser.

He adds: “Our offshore seismic survey and core samples of polyhalite from underground exploration drilling indicate that there are over a billion tonnes of high-grade polyhalite located in CPL’s mining area at Boulby, in a thick seam at a relatively low depth that is readily accessible from our existing mine workings. We look forward to developing this substantial asset in addition to maintaining our position as the UK’s largest mine and sole producer of potash.”