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Another big boost for Sirius Minerals as it signs US deal

Sirius Minerals has agreed a deal with Archer Daniels Midland (ADM), a Fortune 500 US-based agri-business, as its North American partner.

Sirius has signed an agreement with ADM for the supply of its starch-based binding agent to be used in the production of Sirius’ POLY4 product.

And as part of the deal, Sirius says it will design and construct a binder handling facility with the support and expertise of ADM, at or close to the firm’s materials handing facility on Teesside.

The ADM announcement comes as the fifth major development from Sirius in the space of just six weeks.

On June 20, the firm revealed it had signed a seven-year supply deal with Intercontinental Trade DMCC Dubai (ITL), one of the largest suppliers of fertilizer to Nigeria.

A week later, Sirius began construction on its 23-mile fertiliser transport tunnel at Teesside’s Wilton International site, providing a direct link to its Woodsmith Mine, south of Whitby, which is already well under way.

On July 9, the firm revealed that its subsidiary York Potash and Redcar Bulk Terminal (RBT) had entered into a materials handling agreement under which RBT will provide port and ship loading services from its existing Redcar Bulk Terminal port facility.

And on July 20, Sirius revealed it had signed a 10-year double supply deal with Guangzhou Eiliseng Biotech and Yantai Service Agricultural Science and Technology in China.

ADM is currently ranked 48th on the Fortune 500 and is one of the world’s largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in more than 170 countries.

With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centres and the world’s premier crop transportation network, ADM connects the harvest to the home, making products for food, animal feed, industrial and energy uses.

As well as buying its product, ADM will also supply Sirius with a binder ingredient for its polyhalite, branded POLY4, in a five-year deal.

Chris Fraser, managing director and CEO of Sirius (pictured above, right), said: “Sirius has been working with ADM for more than four years and today’s announcement further strengthens our relationship by securing ADM as an important supplier and as a customer aligning our interests for the long-term and demonstrating the significant role POLY4 will play in the world fertilizer markets.”

ADM president Scott Nagel said: “ADM was an early adopter of POLY4 and is excited to bring this multi nutrient low chloride fertilizer to our diverse end-user customers in the North American market including Mexico.

“The opportunity to expand our distribution into the Mexican market with a product like POLY4 supports the overall growth strategy of our business.

“We are pleased that Sirius sees the benefits of the efficient distribution system we have built in North America and we are looking forward to adding POLY4 to our portfolio of fertilizer products.”

Sirius’ York Potash project will already create around 2,500 direct and indirect jobs.

And an independent study conducted earlier this year estimated the project will increase the size of the Tees Valley economy by 18%.

 

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