Junior sulfate of potash (SOP) producer Agrimin Ltd., Nedlands, Western Australia, reported on April 4 that it has inked a binding offtake agreement with U.S.-based Gavilon Fertilizer LLC for the supply of 50,000 mt/y of SOP produced from the Mackay Potash Project during steady-state production for sale and distribution in the U.S.
The deal is for a seven-year term, with pricing based on U.S. market price data. Under the agreement, Gavilon Fertilizer will offtake 30,000 mt in the first year of operation at Mackay and 40,000 mt in the second year, rising to the 50,000 mt/y in year three. Conditions include Agrimin making a final investment decision to develop the project and the commencement of commercial production by June 30, 2026.
Agrimin has now secured three offtake agreements for a total of 315,000 mt/y of SOP, representing 70 percent of the Mackay Potash Project’s planned production capacity of 450,000 mt/y.
In May 2021, the Australian company signed a 10-year binding offtake agreement with China’s Sinochem Fertilizer Macao Ltd. for the supply of 150,000 mt/y of SOP for sale and distribution in China (GM May 21, 2021).
In January 2022, it inked a seven-year binding offtake agreement with Greenwich, CT.-based Nitron Group LLC for the supply of 115,000 mt/y for sale and distribution in Latin America, Mexico, the Caribbean, and Africa. (GM Jan. 28, p. 31).