Aspiring Australian urea producer NeuRizer Ltd. (formerly Leigh Creek Energy) reported on Feb. 6 that it has signed a term sheet for “the negotiation in good faith” of a sales and marketing agreement with South Korea’s Samsung C&T Corp. for the Australian urea market.
The proposed deal covers a five-year term from first production at NeuRizer’s Leigh Creek urea plant under development in South Australia, and provides for, among other things, the marketing by and sale to Samsung of up to 100,000 mt/y of granular urea, which by mutual agreement may be increased to up to 300,000 mt/y.
The proposed deal is in addition to the already signed offtake agreement NeuRizer has with South Korea’s Daelim Co. Ltd. subsidiary DL Trading for up to 500,000 mt/y (GM July 8, 2022) for the export market. Daelim Co. is a long-term strategic partner and shareholder in NeuRizer.
NeuRizer said the agreement with Samsung “is complimentary to the agreement with DL Trading,” and means that the combined amount of production accounted for will be up to 800,000 mt/y of urea upon signing of a definitive agreement with Samsung. The Adelaide-based company said there is no guarantee that a definitive agreement will be reached with Samsung, and the term sheet will remain valid until execution of a definitive agreement or termination of the term sheet.
The Leigh Creek plant is planned to have an initial capacity of 1 million mt/y of urea and would utilize in-situ gasification (ISG) based on coal from the decommissioned Leigh Creek coal mine some 550 kilometers north of Adelaide (GM Aug. 5, 2022).
NeuRizer said it is nearing the completion of the Bankable Feasibility Study for the project, with the Front-End Engineering and Design (FEED) finalized. Upon completing the Final Investment Decision criteria, detailed plant design will start under the company’s EPCC contract with Daelim subsidiary DL E&C.