Sirius Minerals PLC: Additional sales commitments for 1mtpa of polyhalite
October 29, 2013 (Source: Sirius Minerals) — Highlights:
- Two memorandums of understanding signed with customers in China, for 500,000 tonnes per annum each
- Total commitments now 3.78 million tonnes per annum, representing over 75% of phase 1 production of York Potash Project
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 with each of Jiangsu Luling Chemical Industry Group Co. Ltd. (“Luling”) and Huaken International Co. Ltd. (“Huaken”) for 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.
Based in Suqian in the Jiansu province, Luling is one of the top fertilizer companies in Eastern China and specialises in organic fertilizers and environmental biotechnology. Luling’s products are sold across China and include SOP based compound fertilizers, phosphate fertilizers, organic and chemical mixed fertilizers.
Huaken is a subsidiary company of China State Agribusiness Group, one of the top four agribusiness enterprises in China. With a distribution network across China, Huaken produces specialised fertilizer products requiring specific licenses in the Chinese market.
As summarised in the table below, there are currently agreements and commitments for customers to purchase a total of 3.78 million tonnes per annum of polyhalite from the York Potash Project, representing over 75% of phase 1 production.
|Agreement||Regions||Million Tonnes per Annum
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|Offtake Agreement (subject to meeting certain conditions)||China||1.00|
|Memorandum of Understanding||China||1.50|
|Framework Sales Agreements / Letters of Intent||Africa, Central and Latin America, Europe, United Kingdom and South East Asia||1.28|
Chris Fraser, Managing Director and CEO of Sirius, commented:
“The global demand for polyhalite continues to grow as customers in key markets around the world increasingly understand the value of this multi-nutrient mineral. This provides further support for the York Potash Project and the thousands of jobs it will create in North Yorkshire and Teesside.”
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.
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