York Potash mine signs significant deal with a Chinese oil production firm

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SIRIUS MINERALS, the company behind the £10bn York Potash mine, has entered into a new take-or-pay agreement with Yunnan Dian Huang Peony Industrial Group.

The new agreement replaces the off-take contract announced in 2013 with Yunnan TCT Yong-Zhe Company, which TCT and Sirius have mutually agreed to cancel.

The TCT agreement was for a period of three years with a seven year extension option. The new agreement is for 10 years from first production, ramping up to one million tonnes a year over the first six years of the contract.

Dian Huang is a national peony seed oil production enterprise in China with strong government support and backing.

Chris Fraser, ​m​anaging ​d​irector and CEO of Sirius, ​said:​ ​“There is great potential for our multi-nutrient product in both Yunnan and China so firming up this supply arrangement is another positive step for us, especially at such a competitive time for the fertili​s​er industry.

“We look forward to working with Dian Huang for many years to come and our POLY4 product playing a significant role in more effective, efficient and environmentally sustainable agriculture in the region.”

Last week Sirius announced the contractors ​for key components of its North Yorkshire potash project​.

AMC UK​, ​a joint venture between Thyssen Group and Redpath Group​, ​​has been ​selected as preferred contractor for mine site development​ and ​Hochtief Murphy ​Joint ​V​enture ​has been ​selected as preferred contractor for​​ mineral transport system development​.​

​Sirius, which has been given planning permission for the potash mine, said the mine will employ over 1,000 long term workers at full production and a further 1,500 workers will be employed indirectly.

It said the ​York Potash project will deliver a huge boost to North Yorkshire and Teesside.​