Fertiliser firm Cleveland Potash has seen revenues rise but losses widen as it continues its switch to the production of a material used to make organic fertiliser.
The Boulby mine, which was originally sunk to be one of the country’s main producers of potash, has in recent years been switching to the production of polyhalite to be made into polysulphate fertiliser. It also mines rock salt for use in de-icing roads.
Now the company, a subsidiary of Israel Chemicals Ltd (ICL), has released accounts for 2020 which show that its revenues increased from £51.4m to £59m. But over the same period, operating losses rose from £35.1m to £44.9m.
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The accounts highlight the impact of the coronavirus pandemic on the global economy and the company said it had taken measures to conserve cash resources.
But in the accounts, directors say: “Now established as the world’s only polyhalite operation, the business has during the period 2018 to 2020 continued to make progress with its modified operating practices in both the mining and processing of polyhalite.
“In support of these operating practices, the company has continued its capital investment plans.
“The key investments have been and continue to be in underground mining and infrastructure technologies, including mining machinery, ventilation systems and wireless communications and tracking, as well as investment in the potashplus processing to further develop the innovative process of compacting a blend of potash and polyhalite.”
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Last month the mine received approval to continue mining operations for another 25 years.
At the time ICL Boulby described the decision from the North York Moors National Park Authority as “a major step forward in securing the future of our business and our ability to continue providing jobs and investment for East Cleveland and the wider Tees Valley community for many years ahead”.
As part of the approval the company has pledged to undertake a programme to improve the visual aspects of the mine, including removing some building structures, spending almost £9m for landscape enhancements and contributing almost £5m towards tourism activities.
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