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Sirius Minerals has suspended a $500m (£410m) fundraising due to "current market conditions" - effectively putting financing for its massive polyhalite mine on hold.

The company, which is building a £2.5bn mine and Teesside processing plant , says it has enough cash to keep building at its current pace until September.

It comes as US President Donald Trump's trade war with China has sent 'shudders' through the stock market on Monday, according to reports.

Sirius' share price slumped 28% to 10.5p following the announcement on Tuesday.

Earlier this year the company announced it is securing a £2bn credit facility with JP Morgan to get the project over the finish line, but must first raise £410m of its own before the investment bank will release the funds.

Sirius was in the process of raising the money through a bond sale this week - until stock markets plunged.

Fears of a trade war between America and China have worsened, with Wall Street recording its worst day of 2019.

(Image: Getty Images North America)

It follows comments from President Trump, who has accused Beijing of currency manipulation.

The minerals firm has insisted construction on the project is "advancing well" and it remains on target to achieve first polyhalite by the original deadline.

A spokesperson for Sirius said: "The project is currently on target to achieve first polyhalite in 2021 and we have enough cash to keep going at current pace until the end of September.

"So we will relaunch the high yield bond in the coming weeks, when market conditions have improved.

"This $500m bond will allow us to access a $2.5bn credit facility from JP Morgan, which will give us enough money to complete the project."

The final stage of financing is due to fund mining machine excavation works over the next 12 to 24 months that will take Sirius to the point where it reaches first polyhalite.

(Image: Gazette)

The project is set to generate around 2,000 direct and indirect jobs at peak production.

Sirius announced a further wave of jobs for the fertiliser project in June; its contractor DMC is recruiting experienced miners, electricians and deck operatives to help it sink two deep mineshafts at the project's Woodsmith Mine near Whitby.