Junior sulfate of potash (SOP) producer Agrimin Ltd., Nedlands, Western Australia, reported that it has signed a seven-year binding offtake agreement for 115,000 mt/y of SOP from its Mackay Potash Project with Nitron Group LLC for sale and distribution in Latin America, Mexico, the Caribbean and Africa.
The deal with Greenwich, Conn.-based Nitron represents around 25 percent of Agrimin’s planned SOP production capacity of 450,000 mt/y, and is the SOP junior’s second binding offtake agreement. The first, inked in May 2021, was a 10-year deal with Sinochem Fertilizer Macao Ltd for the supply of 150,000 mt/y of SOP for sale and distribution in China (GM May 21, 2021).
Delivery of the SOP under the agreement with Nitron will be a minimum of 1,000 mt container shipment volume per delivery and a minimum of 5,000 mt bulk shipment volume per delivery.
Conditions precedent include Agrimin making a final investment decision to develop the project and the commencement of commercial production by June 30, 2025.
Agrimin is currently advancing the Environmental Impact Assessment (EIA) for the Mackay Potash Project, which is the critical path item to reaching a Final Investment Decision targeted for mid-2022. The final environmental surveys and studies that support the EIA were completed last year.