PERTH (miningweekly.com) – ASX-listed Agrimin has inked a binding offtake agreement with global fertiliser trader Nitron for the supply of 115 000 t/y of sulphate of potash (SoP) produced from the Mackay project, in Western Australia.
The SoP will be distributed in Latin America, Mexico, the Caribbean and Africa under the seven-year agreement, with the offtake accounting for 25% of Agrimin’s planned SoP production capacity of 450 000 t/y.
“We are very pleased to have reached this significant agreement with Nitron, which is a highly respected offtake partner with dominant market positions in Latin America and Africa,” said Agrimin CEO Mark Savich.
“This is our second large tonnage, long-term supply deal and it reiterates the considerable interest in Agrimin’s low carbon, organic SoP product. We have now committed 60% of our planned SoP production under long-term binding offtakes which meet the tenure requirements for project financing.
“This is an exciting start to what will be a very active year for Agrimin as we now finalise multiple workstreams and rapidly advance our Tier 1 Mackay potash project to a final investment decision.”
The planned Mackay project will have a mine life of 20 years, and will require a capital investment of $409-million. This will make the project one of the largest global suppliers of SoP fertiliser, generating estimated yearly sales revenue of A$315-million.