A joint venture between Thyssen Group and Redpath Group has been selected as preferred contractor for the design and build of a Yorkshire potash mine.
Associated Mining Construction UK will complete all shaft construction at the mine site for Sirius Minerals’ planned polyhalite mine near Whitby.
The JV will also complete the shaft construction for a new mineral transport system for the client.
Tendering has been underway since October 2014, runnng in parallel with a definitive feasibility study.
Sirius Minerals said the tendering process had resulted in a “refinement of construction methodology” by the bidders, which coupled with the “current competitive tender rates and design evolution” would result in a significant saving against estimates, but said the total cost was yet to be finalised.
AMC’s first phase of work includes a detailed front-end engineering and design process before work can begin on site, following the formal contract award and after financing is secured.
AMC is currently constructing mine shafts in Canada and Russia.
In addition, a Hochtief Murphy JV has been selected as preferred contractor for the construction of the mineral transport system.
HMJV will design and build the MTS tunnel to link the mine with a materials handling facility on Teesside.
During the first phase, the JV will complete a front-end engineering and design process as well as a detailed geotechnical programme along the MTS route. It is expected to take over 12 months.
HMJV’s contract sum will be agreed based on a final design after the first phase of works is complete.
The joint venture has most recently completed the £250m C310 Thames Tunnel for Crossrail.
According to Sirius Minerals, the full capital funding requirement for the project is $3.56bn (£2.47bn).
Sirius Minerals managing director and CEO Chris Fraser said: “This is the culmination of a huge amount of work by both the successful bidders and those that have been unsuccessful and we thank all of the groups involved for their efforts.
“We are delighted to now be moving forward with our selected partners towards the implementation of the project.”
The new mine, located inside the North York Moors National Park, will have an initial production capacity of 10 million tonnes per annum.