10th Sep 2013 12:48
LONDON (Alliance News) - Sirius Minerals PLC Tuesday said it has achieved 750,000 tonnes per annum of new polyhalite sales commitments from its York Potash project, bringing total commitments to 2.78 million tonnes per annum.
Polyhalite is a type of fertilizer.
The exploration and development mining company, which isn't yet earning any revenues as it tries to get its polyhalite mine in North Yorkshire up and running, said it entered into a 500,000 tonnes per annum memorandum of understanding with Chinese fertiliser distributor Sinoagri.
The company also said it signed various other sales agreements with customers in Africa and Latin America covering the other 250,000 tonnes.
"Sirius has only been formally marketing polyhalite for nine months, so to have secured agreements covering almost 60% of the initial production target of 5 million tonnes per annum and to be in discussions that could see us potentially over sold is extremely encouraging," Chief Executive Chris Fraser said in a statement.
Sirius shares were down 0.51 pence, or 4.4% to 10.99 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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