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, managing director 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 fertiliser 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 Venture 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.