20th Jun 2018 08:08
LONDON (Alliance News) - FTSE 250-listed fertiliser developer Sirius Minerals PLC said on Wednesday it signed a pay offtake agreement to supply fertiliser product POLY4 to products and services supplier Intercontinental Trade DMCC Dubai.
Sirius Minerals shares opened up 3.5% in London following the announcement to 32.52 pence.
The supply agreement is for seven years starting from first production, and is for volumes of POLY4 increasing to 350,000 tonnes per annum in the fourth year and for exclusive marketing rights to Nigeria.
The binding agreement has a pricing system linked to a product benchmark and remains consistent with Sirius' current contract portfolio, it said. Including the supply agreement, the group's peak contracted sales volumes has risen to 4.7 million tonnes per annum from 4.4 million.
"Africa is a huge potential market for POLY4 and we are very pleased to establish our initial footprint in Nigeria, which is the largest market in West Africa. Nigeria is positioned as the key market for fertilizer growth in the region and we believe ITL Trading will be a fantastic long-term partner for the company," said Chief Executive Officer Chris Fraser.
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