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Sirius enters 10-year contract with Muntajat for fertilizer sale, distribution

Sirius Minerals PLC said Oct. 11 that through its subsidiary York Potash Ltd., it has entered into an exclusive 10-year agreement with Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) Q, for the sale and distribution of volumes of POLY4, the trademarked name for Sirius' flagship polyhalite fertilizer product.

The agreement takes Sirius' aggregate peak sales volumes to 13.8 million tonnes per annum and peak contracted production in any one year to 12.2 mtpa, excluding options.

The exclusive distribution to Africa, Australia, New Zealand and certain remaining Middle Eastern and Asian countries, will commence from commercial operations and includes a five-year extension option. The distribution excludes Nigeria and Egypt.

Sirius may terminate Muntajat's distribution rights under the agreement in relation to a specific territory if the latter fails to distribute 75% of the contracted minimum volumes for the territory over a three-year rolling period. Muntajat, meanwhile, may terminate the agreement in the event that Sirius does not meet certain financing or operational milestones.