Sirius Inks Poly4 Supply Deal for Nigeria
Sirius Minerals Plc, which is developing the Yorkshire, UK, polyhalite project, has signed a binding take or pay offtake agreement to supply Poly4 to Intercontinental Trade DMCC Dubai (ITL Trading), one of the largest suppliers of fertilizer to Nigeria.
The supply agreement is a seven-year agreement from first production, for volumes of Poly4 increasing to 350,000 mt per annum in year four and provides for exclusive marketing rights into Nigeria. Sirius said the agreement has a pricing mechanism linked to a relevant product benchmark and is consistent with the company’s existing portfolio of agreements. Taking this latest deal into consideration, Sirius’ peak contracted sales volumes has increased from 4.4 million mt/y to 4.7 million mt/y, it said.
“Africa is a huge potential market for Poly4 and we are very pleased to establish our initial footprint in Nigeria, which is the largest market in West Africa,” said Sirius’ managing director and CEO, Chris Fraser. “Nigeria is positioned as the key market for fertilizer growth in the region and we believe ITL Trading will be a fantastic long-term partner for the company.”
ITL Trading is a global trading company with an active presence in Europe, Africa, the Middle East and Asia. It specializes in supplying Nigeria and West African clients with globally sourced products and services. It is one of the largest suppliers of fertilizer into Nigeria, and through related companies, has access to distribution and logistics infrastructure including storage, port concessions and NPK blending facilities.