Sirius Minerals Seals Take-Or-Pay Supply Deal with IFFCO
Sirius Minerals Plc, Scarborough, England, announced it has signed a take-or-pay supply agreement with Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) for the supply of Poly4 in India from its polyhalite mining and processing project under development in North Yorkshire.
Volumes will ramp up to 1 million mt/y in year eight of the 11-year term, with an option, subject to mutual agreement of the parties, to increase this to 1.25 million mt/y. Sirius said pricing is based on a nutrient-linked formula on a CIF India basis. IFFCO has a break clause after year eight and there is a 10-year extension option subject to mutual agreement by the two parties.