PERTH (miningweekly.com) – ASX-listed Agrimin has inked a binding offtake agreement with Chinese potash importer Sinochem Fertilizer Macao for the supply of 150 000 t/y of sulphate of potash (SoP) from the Mackay project, in Western Australia.
The offtake agreement covers a ten-year term and is the largest offtake volume for any Australian SoP project to date.
The agreement covers one-third of Agrimin’s planned SoP production of 450 000 t/y at Mackay, the company said on Tuesday.
“Sinochem Fertiliser Macao is a tier one offtake partner and we welcome this long-term relationship with China’s main importer of potash to create an important supply channel for Agrimin’s SoP into the world’s largest SoP market,” said Agrimin CEO Mark Savich.
“This large tonnage, long-term supply deal is testament to the quality and scale of the Mackay potash project. It is also further evidence of the considerable interest in the environmental and organic credentials of Agrimin’s SoP product.”
Savich said that the company was at an advanced stage of negotiation with other fertliser companies in different regions, and was expecting to announce further development in the near-term to underpin project financing.
Agrimin plans to produce up to 426 000 t/y of premium SoP over its 20-year life, at an estimated capital cost of $409-million. This will make the project one of the largest global suppliers of SoP fertiliser, generating estimated annual sales revenue of A$315-million.