Shareholders call for inquiry into MP about Sirius Minerals

The Guardian revealed that Mr Jenrick met Israeli billionaire Idan Ofer in March last year in his previous role as exchequer secretary at the Treasury while he was considering a request for support from Sirius.

Mr Ofer is the ultimate owner of rival firm Cleveland Potash, operator of the Boulby mine in east Cleveland, which mines the mineral polyhalite from under the North Sea.

Sirius was building a £2.8bn facility at Sneaton, near Whitby, also with the intention of mining polyhalite – which has uses as a fertiliser and in other industrial applications – along with a processing plant at the Wilton complex on Teesside, bringing 2,000 jobs to the region.

Last year Sirius was left on the brink of financial collapse after failing to secure Government guarantees for up to $3bn worth of bonds intended to provide funding for stage two of the scheme.

It was later bought by the mining firm Anglo American in a cut price deal, virtually wiping out the shareholdings of 85,000 private investors who had invested more than £1bn.

A spokesperson for Mr Jenrick has said that Mr Ofer was a “family friend” and that the minister had notified officials, who advised him to step back from the decision.

Jessie Joe Jacobs, Labour candidate for Tees Valley mayor, said: "I want answers, not just in these decisions about Sirius, but in many other areas. We have a Conservative led Combined Authority that is spending millions and millions every year, investing in various projects with different businesses, people and corporations. I want to be assured they are decisions made for the best of Teesside people, not because it is a friend of a friend at a dinner party. The Labour Party will be scrutinizing every financial decision made by the Conservaitve mayor from the day he came into post, from where he gets his donations from, who funds him to who is and isn't being awarded contracts and given government funds. We will leave no stone unturned.

"Hundreds of small local investors lost a lot of money, some their life savings because of the Sirius Minerals collapse, which Sirius said would not have happened if the government had supported the project. We need a local investigation into the Sirius debacle and the role of the Tees Valley Mayor in this. What was promised by his Government before the Tories turned down a rescue package for the company?

"Robert Jenrick, was overseeing the Sirius deal whilst meeting a “family friend” Idan Ofer. Ofer was the ultimate owner of Cleveland Potash - A rival of Sirius, aiming to grab the same share of the global market for polyhalide fertiliser. At the same time our Tory mayor and independent RCBC council leader told us not to worry, as a deal will be done to save Sirius. A donation to the Tories of £10,000 was made from Ofer to the Tory Party in March, in September, the government chose not to support Sirius. Local investors lost a fortune. It is no surprise they want answers.

"Jenrick is already up to his neck in scandal in a London £1billion housing deal. And this is the thing that angers me the most, there is no levelling up, there is no level playing field, the idea that we are all in this together is a joke. Money talks. Friends in high places help each other. Out of the Britain’s 100 rich list, 1/3 of the are Conservative donors according to the Huffington Post. But it goes beyond this, it is about connections, friendships, schools you went to and clubs you were a part of. Which parties do you attend together, who do you sit next to at a fundraising dinner. Believe me, the Conservatives do not sit next to the likes of you and me. We are not in their club. And we will be watching very very closely."

Carl Quartermain, Labour leader for Redcar and Cleveland, said: "The alleged “cash for favours” scandal surfacing around former Exchequer Secretary Robert Jenrick MP is deeply concerning for local shareholders of the Sirius Mineral, Woodsmith Potash Mine project, many who lost their life savings. We now know Mr. Jenrick was also having meetings with his “family friend” billionaire Idan Ofer, who just happens to be the rival owner of Cleveland Potash, whilst he was considering Sirius’ request for government support. Support that never came which resulted in buy out, stock price collapse and local people losing a fortune.

“How this is not a conflict of interest beggars belief and Boris Johnson needs to recognise that and act accordingly. Let’s not forget, Sirius Minerals were heavily invested and completely committed to this project with construction well underway. They had raised £1.5billion, largely through 85,000 investors, created 1500 jobs with the promise of 1000 new jobs by 2021. They had also provided a community pot of £2m for local projects.

“This project was the poster child for the Northern Powerhouse and Sirius had worked in partnership with this borough for ten years on this project. But when support was needed, Jacob Young MP, Simon Clarke MP and the Redcar & Cleveland Borough Council’s Lib-Indy administration turned their backs. There was no sway or confidence given to steer the government to provide the loan guarantee that would have saved Sirius. Had they done so, Sirius could have secured $2.5bn, protected local shareholder’s investment and provided stability to the workforce. In light of these new revelations, questions need to be raised as to why Jenrick did not declare his close relationship with the rival Potash business owner.”

Councillor Mary Lanigan, Leader of Redcar & Cleveland Borough Council, said: “We clearly can not comment on allegations of what may or may not have been said in a private conversation made two years ago of which we have no knowledge. However, to speak generally, we are a very business-friendly borough and are always open to talk openly and within the rules to businesses and anyone else with a view to encouraging investment in our area which has some world class facilities and opportunities.”

Tees Valley Mayor Ben Houchen declined to comment on the issues raised by The Guardian.