11th Oct 2019 13:31
(Alliance News) - Sirius Minerals PLC on Friday said it has signed a 10-year distribution and supply agreement with a Qatari state-owned fertiliser distributor.
The FTSE 250-listed firm said the agreement relates to its flagship POLY4 fertiliser product.
Qatar Chemical and Petrochemical Marketing and Distribution Co, or Muntajat, will distribute the multi-nutrient product into Africa, Australia, New Zealand and certain Middle Eastern & Asian Territories, Sirius said.
Minimum distribution volumes increase to approximately 2.0 million tonnes per annum in year five of the agreement, before rising to 2.1 million in the eight year.
Sirius reserves the right to terminate the agreement should Muntajat fail to distribute 75% of the contracted minimum volumes in a specific territory over a three-year rolling period.
Managing Director and Chief Executive Chris Fraser said: "We are delighted to expand our growing partnership with Qatar through this long-term supply agreement with Muntajat. Qatar is already a major investor in Sirius via Qatar Investment Authority and Sirius is working with Muntajat to explore the downstream combination of POLY4 with nitrogen products in Qatar and/or the United Kingdom to create a value-added multi-nutrient fertilizer.
"This new supply agreement with Muntajat provides us with access to a number of new markets for POLY4 and further underpins the large scale, international market appetite for POLY4, lifting our aggregate peak sales volumes to 13.8 million tonnes per annum."
The Qatari company markets, distributes and sells over nine million tonnes of fertilizer per year, Sirius said.
Shares in the Sirius were 8.1% higher at 3.71 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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