Sirius Minerals Plc has entered into an exclusive 10-year supply and distribution agreement with European agribusiness group, BayWa Agri Supply & Trade B.V. (BAST), for the distribution of POLY4 into Europe. Annually, BAST distributes more than 30 million metric tons (mt) of agricultural goods across Europe, including sales of approximately 2 million mt/y of fertilizers.
“Our exclusive partnership with BAST will enable us to reach downstream customers through its well-established and extensive logistics network and long-term, trusted relationships with farmers,” said CEO and Managing Director Chris Fraser. “Our exclusive partnership is structured to enable us to achieve maximum value for our POLY4 product.”
The agreement provides for the exclusive distribution of guaranteed minimum tons of POLY4 across most of Europe for a 10-year term that commences from first production and includes two five-year extension options. The guaranteed minimum volumes increase to 2.5 million mt/y in year five. The agreement also provides for an option for Sirius to elect for BAST to purchase and distribute additional volumes above the guaranteed volumes.
“POLY4 fits with our sustainability and farmer services strategies across our markets,” said BAST CEO Daan Vriens. “This will provide farmers, via our extensive networks, a fertilizer product that promotes sustainable agricultural practice in our home market, Europe.”
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.