24th Dec 2015 07:23
LONDON (Alliance News) - Sirius Minerals PLC on Thursday said it has signed a Take or Pay offtake agreement in China with Huaken International for the purchase of polyhalite from the York Potash Project.
The agreement is for a period of seven years from first production and pricing is based on a formula linked to inputs that are consistent with a number of the company's other offtake agreements, Sirius said.
The volumes called for in the contract ramp up to 500,000 tonnes in the seventh year.
Huaken, which is a subsidiary of China State Farms Agribusiness Group, is purchasing the polyhalite to use it as a soil conditioner in China. It is one of a restricted list of companies allowed to import potassium fertilizer.
"We are delighted to sign this important agreement with our partners in China, and we look forward to working very closely with them for the long term. Polyhalite's multi nutrient qualities have useful soil conditioning properties and it can assist in helping countries like China restore agricultural productivity and maintain food security for future generations," Sirius Chief Executive Chris Fraser said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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