New study backs Sirius Minerals

Sirius Minerals has benefited from a slew of good news recently, and with a crucial planning decision on its Yorkshire potash mine just six weeks away, results from its ongoing global crop study programme have provided another shot in the arm.

Indeed, up another 9% on Monday, Sirius shares have tripled since the February low and are up 50% this month at their highest since summer 2013. Having already won approval for the development from Redcar and Cleveland Borough Council last month, Sirius will get a decision from the North York Moors National Park Authority (NYMNPA) on 30 June or 1 July.

Clearly confidence is high. We heard last week that a final report on the project will likely include an "open recommendation" for the Authority's members to consider. That planning officers can find no reason to recommend rejecting the proposal has raised hopes of a favourable outcome in June.

Now, independent studies on tomato and potato crops at the University of Sao Paulo in Brazil have proved positive. Polyhalite - the high-grade fertiliser found at Sirius's York potash project - improved tomato yield by 6% or 15% as a blend component. Potato grown using a polyhalite blend achieved the same yield using 68% less product than the local commercial option.

The Brazilian market for tomatoes accounts for two-thirds of a $4.79 billion South American tomato crop market. Brazil also supplies 22% of the $6 billion South American potato crop.

"Tomatoes and potatoes are two very large markets globally and these results further demonstrate that polyhalite provides the farmer with an economical option to lower input costs, increase yields and get an overall better quality product," said Sirius boss Chris Fraser.

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