Sirius Minerals PLC: Additional Polyhalite MOU
December 23, 2013 (Source: Sirius Minerals) — Highlights:
- 500,000 tonnes per annum of new sales commitments bringing the total to 4.28 million tonnes per annum
- Leading Chinese agricultural business, Sichuan AMPC, enters into 500,000 tonnes per annum memorandum of understanding
- Commitments in place for over 85% of phase 1 production with further discussions continuing with customers for in excess of full phase 1 production
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) (“Sirius” or the “Company”) are pleased to announce further progress in the marketing of polyhalite from its York Potash Project. Sirius has entered into a memorandum of understanding for 500,000 tonnes per annum with Sichuan Agricultural Means Group (“Sichuan AMPC”), bringing the total committed tonnes to 4.28 million tonnes per annum.
The memorandum of understanding with Sichuan AMPC is for the sale of 500,000 tonnes per annum of polyhalite for 10 years. The terms will be at market price to be agreed at the final contract stage. Sichuan AMPC is a major agricultural production company with interests in fertilizer manufacture and distribution in Sichuan and surrounding provinces. The Group is also involved in diversified industries such as mining, feed and agricultural industrialisation, recycling resources, properties and real estate. The group has an annual turnover of 13 billion RMB (£1.3 billion).
Chris Fraser, Managing Director and CEO of Sirius, commented:
“This is yet another demonstration of the global demand for polyhalite, the importance of the York Potash Project to the UK economy and the strong ties we are developing with China.”
As summarised in the table below, there are currently agreements and commitments for customers to purchase a total of 4.28 million tonnes per annum of polyhalite from the York Potash Project. Discussions are ongoing with customers around the world which, combined with the existing arrangements, would represent more demand than the initial Phase 1 production target of 5 million tonnes per annum.
|Agreement||Regions||Million Tonnes per Annum
|Offtake Agreement (subject to meeting certain conditions)||China||1.00|
|Memorandum of Understanding||China||2.00|
|Framework Sales Agreements / Letters of Intent||Africa, Central and Latin America, Europe, United Kingdom and South East Asia||1.28|
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire) and the United States (North Dakota). Incorporated in 2003, Sirius Minerals’ shares are traded on the London Stock Exchange’s AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.
Raj Shah has been a member of the InvestorIntel.com team for the last nearly 9 years. Recruited from Merrill Lynch, he has over 13 years’ ... <Read more about Raj Shah>