Sirius Minerals scores UK and European sales agreements

Sirius Minerals has entered into a number of agreements with undisclosed fertiliser distributors and manufacturers in the UK and Europe for the future sale of polyhalite from the York Potash Project.

Under the framework sales agreements (FSA), which set out volume commitments for formal sales contacts closer to the time of first production, Sirius will supply 310,000 tonnes per annum. It includes volumes of 60,000 tonnes, mainly targeted for sales in the UK.

Prices will be set when signing a formal sales contract, based on market conditions at the time.

Sirius is also in discussions with a range of major distributors and fertiliser blenders for the supply of polyhalite.

"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," said Managing Director of Sirius, Chris Fraser.

"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."

Polyhalite is an evaporite mineral used as a speciality fertiliser. The York Potash mine is located in North Yorkshire, UK.

Shares climbed 2.91% to 26.50p at 10:40 Tuesday.

RD