THOUSANDS of jobs could be created if plans to create a potash mine in the region get the go-ahead.

International mining conglomerate Sirius Minerals is examining the viability of sinking a mine along the North Yorkshire coast.

If the development goes ahead, it would be only the second potash mine in the UK and the first in nearly 40 years.

It comes after Sirius, which has operations in Australia and the US, yesterday bought York Potash Limited, in a deal worth about £25m.

The buyout of the firm, which holds significant mineral rights on the North Yorkshire coast, follows increased global demand for potash, an integral component of fertilizers used for food production.

Sirius said the deal had the potential to make the firm one of the world’s most important suppliers of potash and it now plans to undertake test drilling and seismic surveys in order to investigate the viability of mining.

The site, covering an area between Whitby and Scarborough and stretching out into the North Sea, is adjacent to the UK’s only existing potash mine at Boulby, operated by Cleveland Potash Limited, which started operations in 1973.

North Yorkshire has the UK’s only viable, workable deposits of potash and it is believed there could be billions of tonnes of it on the site.

No timetable has been set for submission of a planning application to develop a mine nor for the start of operations.

But if the project was to go ahead, about 1,500 jobs would be created during the development and construction phase, with about 1,000 permanent jobs at the mine once it is up and running.

Sirius believes the project has the potential to create up to 5,000 jobs in total when indirect jobs connected with the mine, such as support services, are taken into consideration.

Chris Fraser, who founded York Potash last year, has been appointed chief executive of Sirius as part of the deal.

He said: “Obviously we have a long way to go, we are at the exploration stage and have a lot of work to do, but if we get through all of that process the benefits for the region would be significant.”

If a mine does become operational, it is expected it would produce agricultural potash for at least 50 years, meaning skilled jobs for generations to come.

Mr Fraser said: “The amount of capital you need to fund and build one of these means it would be an operation for the long-term.”

If exploratory work is successful, the company would then look for a suitable extraction point (mine head), at which point planning permission would be sought with a view to starting mining as soon as practically possible.

Mr Fraser believed any mine would become “an asset of true national importance”.

He said: “Demand for potash is undergoing significant growth. Potash is an essential component in the fertilizers that we all rely on for cost-effective food production.

“The York Potash project, subject to successful testing, could become a new and strategically-important potash mine for the UK.

“This will help the UK to meet its own needs, giving it security of supply and, importantly, creating a project of local, regional and national economic significance.” Mr Fraser said Sirius would look to work closely with local people as plans developed.

The company said it would use the latest technology and engineering to minimise any environmental impact.

“Sirius takes its responsibilities to local communities and to the environment extremely seriously, and we will be implementing detailed programmes as we look to take things forward,” said Mr Fraser.