THE failure to grant plans for a new potash mine will cost the North-East at least 1,000 jobs and billions of pounds, a business leader has said.

Sirius Minerals wants to build a £1.5bn mine capable of drilling about 2.6 billions tonnes of polyhalite fertiliser at Sneaton, near Whitby, North Yorkshire.

The firm says the York Potash Project will create at least 1,000 jobs, with thousands more in the supply chain, and put about £55m into the local economy, but has faced opposition from the North York Moors National Park Authority and Caravan Club bosses who believe it will damage the area and affect tourism.

However, Rob Miller, a board member on the York, North Yorkshire and East Riding Local Enterprise Partnership (NYLEP), says any rejection of planning consent would deal a significant blow to the region.

He said: “We must be bold enough to grasp this and failure to do so would cause unnecessary delays and jeopardy.”

National Park bosses are due to consider the proposals on July 2, and Mr Miller says fears over tourism are misguided, with the company due to put about £7m of revenue every year into the local economy.

He said: “Tourism is one of our key sectors and we see this as a real opportunity because any short-term disruption during construction can be managed.

“It has been crying out for investment and this is a time to be ambitious.”

Sirius bosses previously refuted rivals' claims its products could fall victim to weak market demand, and last week revealed agreements with unnamed fertiliser distributors and manufacturers to supply the global farming industry.

It will supply 310,000 tonnes of polyhalite a year, including 60,000 tonnes in the UK, and already has a deal with Swiss firm, Keytrade AG, to provide about 1.75 million tonnes of the mineral each year.