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Sirius Minerals secures supply deal for its $5 billion fertiliser mine



Sirius Minerals, which is developing its Woodsmith mine in North Yorkshire, UK, has secured a ten-year supply and distribution deal in Europe with BayWa Agri Supply & Trade, a German agribusiness which will buy up to 2.5 million tonnes a year of polyhalite from the mine.
Aerial view of Sirius Minerals' Woodsmith mine in North Yorkshire UK
(Aerial view of Sirius’ Woodsmith mine in North Yorkshire, UK. Image via Sirius Minerals).

The Woodsmith mine is arguably one of the most ambitious mining projects to be seen in Britain in decades. Situated underneath the North York Moors, the mine is poised to be one of the world’s largest in terms of the amount of resources extracted. Sirius believes that the mine could generate an initial 10 million tonnes per year of polyhalite (a form of potash that is used in plant fertilizers).

Aside from sinking two 1.5km shafts below a national park, the mine project will also see the construction of one of the world’s largest underground conveyor belts which will transfer ore from the mine to a materials handling facility in Teesside via a 37km-underground tunnel.

The agreement with BayWa Agri Supply & Trade will give the project a major boost as it continues trying to raise $3 billion to finish development of the mine. According to a statement from Sirius, the contract will deliver the highest pricing of any of the supply agreements that company has so far inked around the world.
Sirius Minerals personnel inspecting the service shaft at the mine site.
(Sirius Minerals personnel inspecting the service shaft at the mine site. Image via Sirius Minerals).

“The European fertilizer market is highly advanced and the second largest in the world behind China”, Sirius Managing Director and CEO, Chris Fraser said. “We are delighted to be partnering with a leading agribusiness to distribute our POLY4 product into this key market”.

First production from Sirius’ Woodsmith mine is anticipated for the end of 2021, ramping up to an initial production capacity of 10 million tonnes per annum (Mtpa) and then full production of 20 Mtpa.

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Sirius Minerals secures supply deal for its $5 billion fertiliser mine - Time to read 2 min
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