PolyNatura Corp. and Nitron Group LLC announced on Jan. 23 that they have entered a “take-or-pay” offtake agreement for the supply of multi-nutrient polyhalite products from PolyNatura’s greenfield mine in Lea County, New Mexico.
Under the agreement, subject to customary terms and conditions, Nitron will purchase 75 percent of PolyNatura’s production, or 1.5 million tons annually at peak production, over a five-year period commencing from first production.
“We are excited to partner with one of the most respected names in the global fertilizer industry,” said Graham Wheelock, managing director of PolyNatura. “Financial strength, geographic reach, and deep industry knowledge make Nitron the ideal partner to distribute our organic fertilizer globally, enabling farmers around the world to improve crop yields and quality.”
PolyNatura, an affiliate of the Cartesian Capital Group LLC, New York, owns the Ochoa Project in the Permian Basin in New Mexico, which the company said has large, low-cost, proven reserves of polyhalite, and is the only naturally occurring scale deposit of polyhalite in the Americas. Cartesian acquired its stake in the Ochoa Project in 2017 (GM Aug. 18, 2017) from IC Potash Corp., Toronto.
According to its website, PolyNatura’s initial plan was to mine and process polyhalite to produce potassium sulfate, but the company is now focused on the production of “direct application polyhalite.”
Headquartered in Greenwich, Conn., Nitron is a global fertilizer trader and distributor. The company, which was founded in 1982, said it sold 7 million tons of fertilizer in 2018, and has clients in 65 countries.
“Our mission at Nitron is to provide high-quality products to meet the growing demands of our clients around the world,” said Nitron President Javier Urrutia. “This offtake agreement with PolyNatura will enable us to distribute an important organic fertilizer throughout the Americas and other key markets.”