RNS Number : 9822H
Sirius Minerals Plc
27 June 2013
 



 

 

27 June 2013

 

Sirius Minerals Plc

 

Major Polyhalite Offtake Contract

 

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") are pleased to announce that it has entered into an offtake agreement with Yunnan TCT Yong-Zhe Company Limited ("TCT") for the sale of 1 million tonnes per annum ("mtpa") of polyhalite for 10 years from 2017 (the "Offtake"). 

The Offtake is for a fixed price per tonne for the first 3 years ("Initial Price") with a re-negotiation of pricing from year 4 onwards.  The Initial Price will remain confidential but is in line with the Company's assumptions used for its 'base case' NPV modelling.  The agreement contains certain conditions including collaboration on testing and results from crop trials of polyhalite in Yunnan and also Chinese government approvals.

The signing ceremony took place in Kunming and was attended by senior government officials from the Yunnan Province as well as senior executives from the Industrial and Commercial Bank of China ("ICBC").

TCT is one of the fastest growing domestic agricultural products companies in China, integrating production and distribution of agricultural products along with import and export trade and agrochemical services.  Privately owned, TCT's head office is in Kunming in the Yunnan Province and also operates in the important agricultural provinces of Sichuan, Guizhou, Hainan, Guangzhou, plus Beijing and Shanghai.

Yu Yan Qing, CEO of TCT, commented:

"We see great potential in polyhalite as an organic multi-nutrient fertilizer that can provide a competitive advance in agricultural efficiency and helping to increase crop yields and quality in China.  This is an important step for a long term and prosperous relationship between TCT and Sirius Minerals."

Mr. He Yu, the Head of Business Financial Department at ICBC Yunnan regional headquarters said:

"TCT and ICBC have been in a close working relationship for a long period of time.  We are very supportive of TCT expanding their business in the agriculture sector and fully support the sales agreement between TCT and Sirius Minerals.  We are looking forward to working with Sirius Minerals to support the York Potash Project to bring polyhalite to Yunnan."

Chris Fraser, Managing Director and CEO of Sirius, commented:

"This is a major milestone for the Company that further demonstrates the market for polyhalite, supports the economics behind the project and will ultimately help to give confidence in the financing for construction. 

"The Offtake agreement is the latest endorsement of the global demand for polyhalite, its unique multi-nutrient qualities and the role that balanced fertilisation can play in the largest fertilizer market in the world.  We look forward to working with TCT to realise the outstanding potential for polyhalite."

 

For further information, please contact:

Sirius Minerals Plc




Investor Relations

 


Tel:  +44 8455 240 247

 

Email: ir@siriusminerals.com

NOMAD/ Joint Broker

Joint Brokers

Joint Brokers

Media Enquiries

Macquarie Capital (Europe) Limited

Liberum Capital Limited

Jefferies Hoare Govett

Pelham Bell Pottinger

Steve Baldwin,

Raj Khatri

Michael Rawlinson, Clayton Bush

Peter Bacchus

 

Charles Vivian,

Lorna Spears

Tel: +44 20 3037 2000

Tel: +44 20 3100 2222

Tel: +44 20 7029 8000

Tel: +44 20 7861 3232

 

About Sirius Minerals Plc

Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits.  Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland).   Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market.  Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility.  Further information on the Company can be found at www.siriusminerals.com.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCNKODQPBKKFAB