Tanzanian Joint Venture MoU

Released : 25/09/2014 07:00

RNS Number : 5550S
Sirius Minerals Plc
25 September 2014
 



25 September 2014

 

Sirius Minerals Plc

 

Tanzanian Joint Venture MoU

 

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") are pleased to announce that the Company has entered into a Memorandum of Understanding ("MoU") with the Tanzania Fertilizer Company Ltd ("TFC") to establish and formalise a joint venture ("Joint Venture") to blend and distribute polyhalite based fertilizer products in Tanzania and the surrounding region.

 

The MoU contains provisions for the negotiation of an offtake agreement to supply up to 500,000 tonnes of polyhalite per annum to be used as required by the Joint Venture.  The MoU is the result of ongoing discussions between the Company and TFC following the announcement on 2 July 2014 in relation to the MoU signed with the Tanzanian Ministry of Agriculture ("Ministry") to implement a series of crop trials utilising polyhalite as a fertilizer base for future use in Tanzania.

 

TFC is a United Republic of Tanzania state owned business established in 1968.  TFC has a vision and mandate to become a leading fertiliser distribution business in Tanzania by providing high quality and affordable fertilizers across Tanzania and the region.

 

TFC and the Company believe that the unique balance of nutrients in polyhalite, which provides four of the six essential nutrients required for plant growth at very low chloride levels, is a close fit to the requirements of Tanzanian agriculture and will be a perfect bulk ingredient to allow for the production of large scale and affordable fertilizers for Tanzania and potentially the region.

 

Salum Mkumba, General Manager of Tanzania Fertilizer Co. Ltd, commented:

 

"The Tanzanian Fertilizer Company is excited about the potential opportunity to partner with Sirius Minerals in establishing a joint venture for production and distribution of fertilizers in Tanzania and the region.

 

"We believe that polyhalite could represent a significant opportunity for Tanzanian agricultural practices and aspirations due to its unique mineral constituency and its competitive cost, which will have significant positive impacts on the fertilizer market and application practices.  We look forward to continuing to partner with Sirius and the Ministry of Agriculture to further explore and cement this opportunity and to validate polyhalite's potential."

 

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

 

"The Tanzania Fertilizer Company is the oldest fertilizer distribution business in Tanzania and a superb partner for this opportunity.

 

"Our partners believe that polyhalite could play a significant role in the future of fertilizer use and we are delighted to be working towards a platform for polyhalite into the important and growth markets of Tanzania and other countries in East and Central Africa."

 

For further information, please contact:

Sirius Minerals Plc

Investor Relations

 

 

Email: ir@siriusminerals.com

 

Tel: +44 8455 240 247

Joint Brokers

Liberum Capital Limited

 

Clayton Bush, Tim Graham

 

Tel: +44 20 3100 2222

Macquarie Capital (Europe) Limited (NOMAD)

Steve Baldwin, Raj Khatri

Tel: +44 20 3037 2000

WH Ireland

 

Adrian Hadden

Tel: +44 20 7220 1666

Media Enquiries

Tavistock

Jos Simson, Mike Bartlett,

Emily Fenton

Tel: +44 20 7920 3150

Warrant Trading Enquiries

Liberum Capital Limited

 

Simon Smith

 

Tel: +44 20 3100 2171

 

About Sirius Minerals Plc

Sirius Minerals is a potash development company with properties in the United Kingdom (North Yorkshire) and the United States (North Dakota).  Its primary focus is the development of the York Potash Project which has the world's largest and highest grade deposit of polyhalite, a multi-nutrient form of potash containing potassium, sulphur, magnesium and calcium.  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
 
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