Sirius Minerals has been given more time to convince local authorities that its plan to mine potash in the North York national park will not cause environmental damage.
A planning committee report on the project was due to be published on Thursday with a vote by the North York Moors National Park Authority expected on 29 July.
But growing concerns about the impact of the project led to the company seeking more time to address the environmental and ecological issues. Earlier this week the company's shares slumped more than 20% after news that a report by consultants Amec included negative comments on the project.
As the company announced the delay, its shares fell another 20% or so before recovering, and now stand nearly 5% higher at 22.5p.
In a statement the Park Authority said it had "reluctantly" deferred a decision on the planning application for the third time. It said:
The National Park Authority and its consultants have been advising York Potash of the need to undertake more environmental work since December 2012, and have continued to do so in the intervening months.
The authority will continue to work constructively with the Company over its application. It regrets the continued uncertainty this will cause for local communities and others.
Sirius managing director Chris Fraser said:
Whilst a deferral will be frustrating to the thousands of supporters of the project, we must ensure the National Park is in a position to make a robust decision on the application.
Analysts at SP Angel said:
The delay to meet European habitat legislation is hopefully a minor issue. Bigger issues of value, project finance and the scale of the offtake market remain.
