Sirius Minerals concludes another supply agreement

17.06.2019

Sirius Minerals has concluded another supply agreement, its first on the Indian subcontinent

SiriusMinerals Woodsmith Mine July 2018 webThe UK company has signed a take-or-pay supply agreement with Indian Farmers Fertilisers Cooperative (IFFCO) Ltd for the supply of the POLY4 product in India over an 11-year period.

The statement says volumes will ramp up to one million tonnes per year (t/y) in year eight, with an option subject to agreement of the parties to increase to 1.25 million t/y.

Sirius Minerals states total peak aggregate volumes under contract now stand at 11.7 million t/y, with 13.4 million t/y when including customer volume options.

IFFCO has over 36,000 member cooperatives with access to over 55 million Indian farmers. The agreement is for the exclusive supply and distribution of POLY4 throughout India and is on a take-or-pay basis, said the company statement. 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,” the statement reads.

In April 2019, Sirius Minerals announced a 10-year European supply and distribution agreement with BayWa Agri Supply and Trade (BAST) for its POLY4 product.

The company’s Woodsmith mine in the north of England is scheduled for start-up in 2021.

More information:
www.siriusminerals.com

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