Additional sales commitments for 1mtpa polyhalite

Released : 29/10/2013 07:00

RNS Number : 5889R
Sirius Minerals Plc
29 October 2013
 



 

29 October 2013

 

Sirius Minerals Plc

 

Additional sales commitments for 1mtpa of polyhalite

 

·    Two memorandums of understanding signed with customers in China, for 500,000 tonnes per annum each

·    Total commitments now 3.78 million tonnes per annum, representing over  75% of phase 1 production of York Potash Project

 

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") are pleased to announce further progress in the marketing of polyhalite from its York Potash Project.

Sirius has entered into a memorandum of understanding with each of Jiangsu Luling Chemical Industry Group Co. Ltd. ("Luling") and Huaken International Co. Ltd. ("Huaken") for 500,000 tonnes per annum of polyhalite for 10 years.  The terms will be at market price to be agreed at the final contract stage. 

Based in Suqian in the Jiansu province, Luling is one of the top fertilizer companies in Eastern China and specialises in organic fertilizers and environmental biotechnology.  Luling's products are sold across China and include SOP based compound fertilizers, phosphate fertilizers, organic and chemical mixed fertilizers. 

Huaken is a subsidiary company of China State Agribusiness Group, one of the top four agribusiness enterprises in China.  With a distribution network across China, Huaken produces specialised fertilizer products requiring specific licenses in the Chinese market. 

As summarised in the table below, there are currently agreements and commitments for customers to purchase a total of 3.78 million tonnes per annum of polyhalite from the York Potash Project, representing over 75% of phase 1 production. 

Agreement

Regions

Million Tonnes per Annum

(mtpa)

Offtake Agreement (subject to meeting certain conditions)

China

1.00

Memorandum of Understanding

China

1.50

Framework Sales Agreements / Letters of Intent

Africa, Central and Latin America, Europe, United Kingdom and South East Asia

1.28

Total


3.78

 

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

"The global demand for polyhalite continues to grow as customers in key markets around the world increasingly understand the value of this multi-nutrient mineral.  This provides further support for the York Potash Project and the thousands of jobs it will create in North Yorkshire and Teesside."

For further information, please contact:

Sirius Minerals Plc




Investor Relations

 

Tel:  +44 8455 240 247

 

Email:

ir@siriusminerals.com

NOMAD/ Joint Broker

Joint Broker


Media Enquiries

Macquarie Capital (Europe) Limited

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Pelham Bell Pottinger

Steve Baldwin,

Raj Khatri

Clayton Bush,

Tim Graham


Charles Vivian,

Lorna Spears

Tel: +44 20 3037 2000

Tel: +44 20 3100 2222


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) and the United States (North Dakota).  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.

 

 

 

 

 


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