SIRIUS Minerals has secured a European distribution agreement for the fertiliser it plans to produce from a giant mine on the North York Moors.
The listed company has signed a 10-year supply and distribution contract with BayWa Agri Supply and Trade (BAST), a Dutch subsidiary of Munich-based agricultural giant BayWa.
BAST will exclusively distribute POLY4 in Europe through its Cefetra business.
Chris Fraser, managing director and chief executive of Sirius, said: “The European fertiliser market is highly advanced and the second largest in the world behind China.
“We are delighted to be partnering with a leading agribusiness to distribute our POLY4 product into this key market.
“Our exclusive partnership with BAST will enable us to reach downstream customers through the groups’ well-established and extensive logistics network and long-term, trusted relationships with farmers.
“Our exclusive partnership is structured to enable us to achieve maximum value for our POLY4 product.”
The agreement includes two five-year extension options.
The price received by Sirius under the agreement will be determined by the price received by BAST based on benchmark pricing and the nature of the end user.
Daan Vriens, chief executive of BAST, said: “We are excited to be partnering with Sirius to bring a high performing, multi-nutrient fertiliser like POLY4 to customers across Europe through Cefetra. We believe in long term partnerships and we feel confident that this will be a successful new endeavour.
“POLY4 fits with our sustainability and farmer services strategies across our markets.”
He added: “This will provide farmers, via our extensive networks, a fertiliser product that promotes sustainable agricultural practice in our home market, Europe.”