25th Apr 2019 08:25
LONDON (Alliance News) - Fertiliser firm Sirius Minerals PLC has signed a new supply agreement for future production from its Woodsmith mine in Yorkshire, UK.
The ten-year deal has been signed with Munich-based BayWa AG, and will see Sirius supply the firm with POLY4 fertilizer in Europe.
BayWa, Sirius said, distributes over 30 million tonnes a year of agricultural goods in Europe, including some 2.0 million tonnes of fertiliser a year.
Sirius Chief Executive & Managing Director Chris Fraser said: "The European fertilizer market is highly advanced and the second largest in the world behind China. We are delighted to be partnering with a leading agribusiness to distribute our POLY4 product into this key market."
"Our exclusive partnership with BayWa will enable us to reach downstream customers through the groups' well-established and extensive logistics network and long-term, trusted relationships with farmers. Our exclusive partnership is structured to enable us to achieve maximum value for our POLY4 product."
The deal has a minimum volume ramping up to 2.5 million tonnes of POLY4 a year by the fifth year, meaning Sirius has now agreed supply deals covering 10.7 million tonnes a year.
Shares in Sirius Minerals were 2.9% higher on Thursday morning at 21.59 pence each.
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