by Andrew Spence
Plans for a rare earth metal processing plant at Saltend have been scrapped after the firm behind it decided against proceeding, the Government has confirmed.
The site would have processed materials for magnets used to produce renewable energy.
Pensana had planned to open a facility at Saltend Chemicals Park that would process rare earth metals from deposits in Angola in southern Africa. The site was set to create more than 100 jobs in the area.
However, a spokesman for the Department for Work and Pensions has now confirmed the plans will no longer be going ahead, saying: “It is disappointing Pensana has decided not to proceed with this development, but it is ultimately a commercial decision for the company.
“We will publish a new Critical Minerals Strategy soon to help secure our supply chains for the long term, and we’re reducing industrial electricity costs for businesses as part of our modern Industrial Strategy.”
Plans for the site were approved by East Riding Council’s planning committee in 2022 despite some local concerns.
At the time Preston, Paull and Hedon Parish Councils objected along with 34 people over the loss of green space, pollution, flooding, traffic and its proximity to homes.
Soon after planning permission was granted, the then-business secretary Kwasi Kwarteng, who later briefly went on to become chancellor during Liz Truss’ short-lived premiership, broke the ground on the site.
At the time he said: “Supporting a company like Pensana, that refines critical minerals used in magnets for electric vehicles is really important. What Pensana does for electric vehicles is critical, and all the things we use in the modern world depend on this type of work.
“China has a lead on critical minerals, which it feeds into the supply chain for electric vehicles, mobile phones, things we use all the time – even fighter jets. We will provide a critical minerals strategy to make sure we can produce more of these here, so we can have resilience.
“It is all about reindustrialising, bringing skills and well-paid jobs to the Humber, and other areas, something we are very focused on. It is high-skill, high-wage employment and that’s really exciting.”
The news of Pensana walking away from the plans comes soon after the closure of Saltend’s Vivergo Fuels, the UK’s largest bioethanol producer. Similarly, petrochemicals giant INEOS has recently announced it is to cut 20 per cent of its workforce at Saltend.
The firm, which is owned by the East Yorkshire-educated billionaire Sir Jim Ratcliffe, announced earlier this month it is losing 60 skilled jobs at its Acetyls plant, having explored “every possible alternative”.
The leader of Hull City Council, Cllr Mike Ross ,described the job cuts as “deeply worrying”, while Beverley and Holderness MP Graham Stuart said: “Ministers need to get a grip or we are going to lose our entire industrial base.”