Hancock Prospecting Ltd has announced a major investment in a natural fertilizer business, by way of a US$300M investment in UK based Sirius Minerals PLC (Sirius) comprising the purchase of:
- A 5% royalty stream on the first 13 million tpy of product (and 1% thereafter).
- US$50M worth of shares in Sirius.
- The right to purchase up to 20 000 tpy of product for use on HPPL’s Australian agricultural operations.
Sirius is developing the North Yorkshire Polyhalite Project in the UK, which will be marketed as a multi-nutrient agricultural fertilizer.
The project involves the construction of a mine, a 37km underground conveyor system, and materials handling and port facilities. The first phase of the project will involve the development of 10 million t of annual capacity, with potential to quickly increase to 13 million t and (subject to further approvals) 20 million tpy.
“This project delivers a new and natural product which is relevant to Hancock’s focus on agriculture and after years of field tests and across many crop types, demonstrated improved yields. Sirius has a large, high quality mineral resource and is located in a stable jurisdiction with a competitive tax rate”.
“I am advised that Sirius is working to progress the project and has the potential to become one of the world’s leading producers of multi-nutrient fertilizer, and could have a life of 100 years – this fits with my approach of investing in strategic areas for the long term, and I hope the product is of assistance to many Australian farmers.” Mrs. Rinehart said.
Mr. Garry Korte, CEO of Hancock, said: “The ability to feed the world’s growing population and meet the increased demand through more efficient, higher yielding agricultural land use, requires investment in this type of innovative product. The strong investment fundamentals also meet Hancock’s criteria.”
Managing Director and CEO of Sirius, Mr. Chris Fraser, commented: “Through the North Yorkshire Polyhalite project, Sirius Minerals is focused on the development of what we believe to be the world’s largest high-grade known polyhalite deposit and our patented multi-nutrient fertilizer product. Considering Mrs. Rinehart’s and Hancock’s expertise in each of mining and agriculture, this investment is a significant vote of confidence in not only our project, but also our product.”
Read the article online at: https://www.worldfertilizer.com/potash/27102016/hancock-expands-agricultural-interests/