Boulby mine to lose hundreds of jobs

Plans are part of a major restructure announced by ICL UK

Chemicals and materials producer ICL is to cut about 220 jobs and 140 contractor positions at its Boulby mine, in North Yorkshire, as part of a major restructure.

ICL's plans to move away from producing potash at the mine to producing environmentally-friendly fertiliser polysulphate.

The decision is a result of a reduction in the level of "economically-feasible" potash reserves at Boulby, which ICL estimates will be depleted by 2018. The company says to remain economically viable while the transition occurs, it "must restructure its cost base" at Boulby mine.

Peter Smith, executive vice-president of potash at ICL, said: "We are in a strong position as the only producer of polysulphate and based on initial market acceptance of the product, ICL is prepared to invest significant resources in developing new global markets for polysulphate.

"We will invest £20 million this year in the site infrastructure, with a potential investment of a further £20 million that would enable us to expand production from an estimated 200,000 tonnes this year to one million tonnes by 2020, with a long-term potential for up to three million tonnes.”

The company is also carrying out a feasibility study into building a granulation plant on the site at a cost of about £40 million.