Cautious Treasury loses out on Sirius Minerals millions after failing to back the company

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Cautious Treasury loses out on Sirius Minerals millions after failing to back the company

  •  Sirius asked the Government to guarantee up to $1billion of bonds
  • If the Treasury had agreed, Sirius would have paid the Government annual interest estimated at $50m to $100m over the life of the bond 

The Government could have earned hundreds of millions of pounds if it had backed the recent $3.8billion (£3billion) finance package for Sirius Minerals.

Sirius – which wants to build a huge fertiliser mine in North Yorkshire – asked the Government to guarantee up to $1billion of bonds as part of the complex deal.

If the Treasury had agreed, Sirius would have paid the Government annual interest estimated at $50million to $100million over the life of the bond – amounting to at least $400million in total.

Sirius wants to build a huge fertiliser mine in North Yorkshire but requires more funding

Sirius wants to build a huge fertiliser mine in North Yorkshire but requires more funding

Sirius was forced to abandon the package last month after investors shied away from a $500million bond issue.

They are understood to have said they would have participated if boss Chris Fraser had gained Government support.

A Treasury spokesman said: ‘When examining any request for financing we have to assess the potential of a project against the need to protect taxpayers’ money.’

 

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