Woodsmith Mine in trouble
Posted on 23rd November 2019
Sirius Minerals faces a challenging funding environment in trying to complete the Woodsmith Mine.
The challenges faced by Sirius Minerals in financing construction of the Woodsmith Mine have come as no surprise to us. From the outset, we opposed the mine on the grounds that allowing a huge industrial development in a National Park was wrong, and we highlighted the uncertain nature of the company's finances. Funding has come from diverse sources including the Australian mining magnate - and climate change denier - Gina Rinehart, to thousands of small investors living locally. In addition, the market for the eventual product - polyhalite - is by no means certain, especially for the vast amounts which need to be mined and sold to cover the investment.
We feel deeply sorry about the loss of jobs and the financial hardship the uncertainty is causing, as we fully appreciate the mine's potential significance to the economy of the north-east - and that many small investors may lose their life-savings. However, anyone who views the desecration of a once-beautiful area at the minehead site cannot help but feel that the planners and investors who facilitated this speculative scheme would have been better advised to listen to reason rather than support it.
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