31st Jul 2018 08:53
LONDON (Alliance News) - Fertiliser company Sirius Minerals PLC said Tuesday it has signed an off-take agreement with North American firm Archer Daniels Midland Co for its POLY4 product.
Archer Daniels, Sirius said, is one of the world's largest agricultural processors and food ingredient providers, operating in over 170 countries.
The deal lasts for seven years from commercial production, and has two five-year extension options which can supply volumes of POLY4 rising to 1.5 million tonnes a year in the fifth year with an option for an extra 500,000 tonnes a year.
Sirius hopes to produce POLY4 by mining polyhalite at its Woodsmith mine in Yorkshire.
Sirius Chief Executive & Managing Director Chris Fraser said: "Sirius has been working with ADM for more than four years and today's announcement further strengthens our relationship by securing ADM as an important supplier and as a customer aligning our interests for the long-term and demonstrating the significant role POLY4 will play in the world fertilizer markets."
This is one of several supply agreements Sirius has signed recently - earlier in July, it signed deals with two Chinese companies, and in June it agreed a deal with a company focused on Nigeria.
Shares were 2.1% higher on Tuesday morning at 36.42 pence each.
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