Sirius Minerals plc POLY4 Offtake Agreement - South East Asia (6344U)
26 October 2017 - 5:00PM
UK Regulatory
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
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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
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