- Fertiliser development company Agrimin (AMN) has signed a binding offtake agreement with Sinochem Fertiliser Macao, a subsidiary of major Chinese potash importer, Sinofert Holdings
- Under the 10-year agreement, Sinochem will buy 150,000 tonnes per annum of sulphate of potash (SOP) produced from Agrimin's WA-based Mackay Potash Project for sale and distribution in China
- Notably, this is the largest offtake volume for any Australian SOP project
- On the market this afternoon, Agrimin is up 5.88 per cent and is trading at 54 cents per share
Agrimin (AMN) has signed a binding offtake agreement with Sinochem Fertiliser Macao, a subsidiary of China's major potash importer, Sinofert Holdings.
The 10-year deal will see 150,000 tonnes per annum of sulphate of potash (SOP) produced from Agrimin's Mackay Potash Project in Western Australia. Once produced, the SOP product will be distributed and sold in China.
The offtake agreement covers one-third of Agrimin's planned SOP production of 450,000 tonnes per annum.
Notably, this is the largest offtake volume for any Australian SOP project.
China is the world's largest SOP market and currently accounts for more than half of the world's SOP demand.
Agrimin CEO Mark Savich is pleased to commence a long-term relationship with Sinochem.
“This large tonnage, long-term supply deal with Sinochem Fertiliser Macao is testament to the quality and scale of the Mackay Potash Project," he told the market.
"It is also further evidence of the considerable interest in the environmental and
organic credentials of Agrimin’s SOP product. We are at an advanced stage of negotiations with other major fertiliser companies in different regions and we
expect to announce further developments in the near term to underpin project financing," he added.
On the market this afternoon, Agrimin is up 3.92 per cent and is trading at 53 cents per share at 3:23 pm AEST.