TIDMSXX

RNS Number : 6344U

Sirius Minerals plc

26 October 2017

26 October 2017

Sirius Minerals Plc

POLY4 Offtake Agreement - South East Asia

-- Take or pay offtake agreement for sale of POLY4 to Wilmar Group, a leading agribusiness group, for use and resale exclusively in South East Asia

-- Seven-year agreement with volumes ramping up to 750,000 tonnes per annum

-- Pricing mechanism consistent with the Company's portfolio of existing offtake agreements

Sirius Minerals Plc ("Sirius" or the "Company") announces the signing of a binding take or pay offtake agreement ("the Agreement") to supply POLY4 to PT Chemical Indonesia, which is a wholly owned subsidiary of Wilmar Group ("Wilmar") for exclusive resale into key South East Asian territories including Indonesia, Malaysia, Vietnam, Thailand, Philippines and Myanmar.

Wilmar is listed on the Singapore Stock Exchange and is one of the leading agribusinesses in South East Asia with extensive distribution channels, a mature logistics network in the region and over 250,000 hectares of its own farming operations. South East Asia is one of the fastest growing fertilizer regions in the world, with a population of over 650 million people.

The prices to be paid pursuant to the Agreement are calculated using a formula linked to the market price of certain nutrients contained in POLY4 and is broadly in line with the Company's existing supply agreements.

The term of the Agreement is for an initial seven years following initial production which may be extended by a further three years by Wilmar. The Agreement has a delivery schedule of up to 750,000 tpa in the seventh year. In addition, Wilmar has an option to increase the minimum volumes of supply up to 1 million tpa.

Chris Fraser, Managing Director and CEO of Sirius, comments:

"We are delighted to be partnering with one of the largest and most established fertilizer buyers and distributors in South East Asia. Wilmar is a partner with the capacity to reach a diverse customer base through well established, trusted relationships. South East Asia is a fast-growing market which provides Sirius with an attractive opportunity to further diversify and grow our current portfolio of customers."

For further information, please contact:

 
 Sirius Minerals       Tristan Pottas                  Tel: +44 845 524 
  Plc                   Email: ir@siriusminerals.com               0247 
  Investor Relations 
  Manager 
--------------------  ------------------------------  ----------------- 
 Media enquiries       Jos Simson                      Tel: +44 20 7920 
  Tavistock             Emily Fenton                               3150 
--------------------  ------------------------------  -----------------

About Sirius Minerals Plc

Sirius Minerals Plc is focused on the development of the Woodsmith Mine, which will access the world's largest and highest grade polyhalite deposit located in North Yorkshire, United Kingdom. Polyhalite is a unique multi-nutrient fertilizer, which can be used to increase balanced fertilization around the world. Sirius Minerals' shares are traded on the Premium List of the London Stock Exchange. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at: www.siriusminerals.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGRMABATMBATBFR

(END) Dow Jones Newswires

October 26, 2017 02:00 ET (06:00 GMT)

Sirius Minerals (LSE:SXX)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Sirius Minerals Charts.
Sirius Minerals (LSE:SXX)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Sirius Minerals Charts.