21st Jan 2014 12:01
LONDON (Alliance News) - Sirius Minerals PLC Tuesday said it has signed a take or pay supply agreement for polyhalite from its York Potash Project.
The potash exploration and development company, with operations in the UK and US, said the agreement is for the sale of at least 500,000 tonnes per year of polyhalite for an initial period of five years with a possible renewal for a further five years.
The company said the agreement relates to sales in North America and certain countries in Africa, South East Asia and Central America and that, under the agreement the other company, which is a major US based Fortune 500 agri-business, has the option to take up to an additional 500,000 tonnes per year.
Sirius Minerals said that the price to be paid for the supply deal is based on a formula linked to the market price of nutrients contained in polyhalite.
Polyhalite is used as a speciality fertiliser as it contains a range of nutrients and is low in chlorine.
The news comes after the company announced in December, a 10-year polyhalite deal with Sichuan Agricultural Means Group for the sale of 500,000 tonnes of the mineral.
Sirius Minerals shares were up 6.4% to 14.36 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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