Deals give Sirius Minerals confidence for York Potash project

SIRIUS Minerals has signed a series of deals with fertiliser firms in the UK and Europe covering major future sales from its planned York Potash project.

The company, which is developing the project in the North Yorkshire Moors National Park, close to Whitby, said that the framework sales agreements are for 310,000 tonnes of polyhalite, which are on top of a deal already signed with Keytrade for up to 1.75m tonnes a year.

It said that further discussions are ongoing to supply polyhalite to a range of major distributors and fertiliser blenders around the world which, if they come to fruition, would see the company exceed its initial production target of five million tonnes per year from the York Potash project.

Sirius said that the new agreements covered 60,000 tonnes a year supplied for UK sales while the rest would be to established fertiliser manufacturers and distributors in central Europe.

It said the pricing structure would be agreed at the time of signed the formal sales contract based on market conditions at the time.

Chris Fraser, managing director and chief executive of Sirius, commented: “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.

“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.”

Planning consent for the project will be considered by the North York Moors National Park Authority on July 2.