This is why Sirius has struck an agreement with Qatar-owned Muntajat

Fertiliser development company Sirius Minerals has entered into an exclusive ten-year supply and distribution agreement with Qatari state-owned Muntajat.

Flying high: The Red Arrows fly over the Sirius Minerals mine in North Yorkshire. Sirius is hoping the new agreement will help it unlock new markets.

The agreement will see Sirius Minerals, through its subsidiary York Potash, supply and distribute volumes of POLY4 into Africa, except Nigeria and Egypt, Australia, New Zealand and certain remaining Middle East and Asian territories.

Chris Fraser, managing director and CEO of Sirius, said: “We are delighted to expand our growing partnership with Qatar through this long-term supply agreement with Muntajat.

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“Qatar is already a major investor in Sirius via Qatar Investment Authority and Sirius is working with Muntajat to explore the downstream combination of POLY4 with nitrogen products in Qatar and, or, the United Kingdom to create a value-added multi-nutrient fertiliser.

“This new supply agreement with Muntajat provides us with access to a number of new markets for POLY4 and further underpins the large scale,ninternational market appetite for POLY4, lifting our aggregate peak sales volumes to 13.8 million tonnes per annum.”

Muntajat is a state-owned Qatari company which markets and distributes approximately 9 million tonnes of fertiliser per annum.

POLY4 is Sirius’ trademarked name for its multi-nutrient fertiliser to be produced from the polyhalite mine in North Yorkshire.

Abdulrahman Ali Al-Abdulla, CEO of Muntajat, said: “We see tremendous potential in POLY4 and Sirius’ Project which will enable us to bring this multi-nutrient product to our extensive global customer network.

“The addition of POLY4 will complement our existing portfolio and will enable us to provide a more complete solution to our customers in these important markets by adding additional macro-nutrients to our portfolio.”

Last month, Sirius Minerals shelved a £400m fundraiser, casting a shadow over plans to construct the giant fertiliser mine in North Yorkshire.

The firm said it would be scaling back production at the site.

The company said it believes its major bond offering cannot go ahead “in current market conditions” and will launch a “comprehensive” review to assess different ways to secure the necessary funding for the project.