Junior U.K. potash company Sirius Minerals Plc has announced further progress in the marketing of polyhalite from its York Potash Project. Sirius has entered into a memorandum of understanding for 500,000 mt/y Sichuan Agricultural Means Group, bringing the total committed mt to 4.28 million mt/y.
The memorandum of understanding with Sichuan AMPC is for the sale of 500,000 mt/y of polyhalite for 10 years. The terms will be at market price to be agreed at the final contract stage. Sichuan AMPC is a major agricultural production company with interests in fertilizer manufacture and distribution in Sichuan and surrounding provinces. The Group is also involved in diversified industries such as mining, feed and agricultural industrialization, recycling resources, properties and real estate. The group has an annual turnover of 13 billion RMB (£1.3 billion).
Sirius says there are currently agreements and commitments for customers to purchase a total of 4.28 million mt/y of polyhalite from the York Potash Project. Discussions are ongoing with customers around the world which, combined with the existing arrangements, would represent more demand than the initial Phase 1 production target of 5 million mt/y.