* Co to sell at least 500,000 tonnes of polyhalite a year to
a Fortune 500 U.S. company
* Buyer could take additional 500,000 per year
* Shares up as much as 9 percent
Jan 21 Potash miner Sirius Minerals Plc
said a deal to sell at least 500,000 tonnes of polyhalite a year
to a U.S. company had bumped up sales commitments to 96 percent
at phase 1 of its controversial potash project in Northern
The miner did not identify the buyer but said it was a
Fortune 500 agri-business.
The news sent the AIM-listed miner's shares up as much as
9.26 percent, making it one of the top percentage gainers on the
London Stock Exchange on Tuesday morning.
Sirius Minerals, which has been struggling to get
permissions to mine polyhalite beneath the national park in
North Yorkshire, said last week that it would re-apply for fresh
planning approvals by July.
A large portion of the company's $1.7 billion project sits
under the national park in North Yorkshire.
The company said the pricing of the deal was based on the
market price of nutrients contained in polyhalite and in line
with previous guidance.
Sirius Minerals said it had agreed to sell at least 500,000
tonnes per year of polyhalite - a form of fertiliser ingredient
in potash - for five years with a possible renewal for a further
The deal would take sales commitments for phase 1 of the
project to 4.8 million tonnes per year, just shy of its 5
million tonne production target.
The U.S.-based buyer could take up to an additional 500,000
tonnes per annum, Sirius Mineral added.
"We consider this the company's most significant offtake
agreement to date," Liberum analyst Richard Knights wrote in a
The company signed an agreement in December to supply
500,000 tonnes per year of polyhalite to Sichuan Agricultural
Means Group (Sichuan AMPC).
The stock pared most of its early gains to trade up 3.7
percent at 14.15 pence at 0827 GMT.