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Sirius Minerals inks South East Asia export deal for North Yorkshire fertiliser mine

An initial 7-year deal could see up to 750,000 tonnes of the POLY4 product supplied to customers in Indonesia, Malaysia, Vietnam, Thailand, Philippines and Myanmar – though the deal could be upgraded to 1mln tonnes and may extend to 10 years

Pricing will be linked to the prevailing market for certain nutrients contained within POLY4

Sirius Minerals PLC (LON:SXX) has struck an offtake deal to sell a large volume of the fertiliser product that will be produced from its North Yorkshire mine.

The mine developer has agreed a deal with Wilmar Group, a Singapore listed agribusiness group, for the use and resale of the POLY4 exclusively in South East Asia, with the pricing parameters to be linked to prevailing market prices for certain nutrients contained within POLY4.

READ: Sirius Minerals tipped as ‘buy’ ahead of institutional investor visit to polyhalite mine project

Specifically, Wilmar can resell into territories such as Indonesia, Malaysia, Vietnam, Thailand, Philippines and Myanmar.

The deal has an initial seven-year term, with a deliver schedule ramping up to 750,000 tonnes per year by the seventh year.

Wilmar has the option to lift the offtake volume up to 1mln tonnes per annum, and it can extend the initial agreement for a further three years.

"We are delighted to be partnering with one of the largest and most established fertilizer buyers and distributors in South East Asia,” said Chris Fraser, Sirius managing director

“Wilmar is a partner with the capacity to reach a diverse customer base through well established, trusted relationships. 

READ: Sirius Minerals sees mine development activity rising every month

“South East Asia is a fast-growing market which provides Sirius with an attractive opportunity to further diversify and grow our current portfolio of customers."

Quick facts: Sirius Minerals PLC

Price: 5.22 GBX

Market: LSE
Market Cap: £366.45 m

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