Deals sealed by firm behind planned potash mine

Sirius Minerals has submitted plans for a potash mine under the North York Moors, which could create more than 1,000 jobs.

Today, Sirius Minerals announced that it had entered into a number of agreements with fertiliser distributors and manufacturers in the UK and central Europe, covering the future sales of Polyhalite from the York Potash Project.

The agreements set out volume commitments and a basis for co-operation between the parties, in relation to entering into formal sales contracts closer to the time of first production.

The statement added: “The agreements are with established fertiliser manufacturers and distributors, rather than trading businesses, and will remain confidential at this time. The pricing structure is to be agreed at the time of entering into the formal sales contract based on market conditions at the time.”

Discussions for polyhalite supply agreements in various forms, remain ongoing with a range of customers, including major distributors and fertiliser blenders around the world, the company said.

Chris Fraser, the managing director and chief executive of Sirius, said:

“This further customer endorsement of the market for polyhalite is just the beginning, but demonstrates a clear need and market for this sustainable multi-nutrient form of potash.

“Customers both here in the UK and around the world are seeing significant agronomic value in our products and are encouraging us to reach production as fast as possible.”