The company releases its quarterly progress update for the period to 30 September 2018.
- Sirius Mineral's project remains on track to deliver first polyhalite and commercial production on time.
- Procurement has been substantially completed for the major construction packages; a major pre-requisite for stage 2 financing.
- Construction is progressing in line with 2018 guidance.
- Largest supply agreement to date of 2.5 million tpy peak aggregate volume signed for key markets in South America including Brazil, taking peak aggregate contract volumes to 8.2 million tpy.
- Stage 1 royalty funding of US$250 million received.
- Capital funding requirement expected to increase by between US$400 million to US$600 million; Sirius progressing financing alternatives.
Chris Fraser, Managing Director and CEO of Sirius, commented:
"The business made excellent progress during the 3Q18, achieving a number of key milestones. Procurement is now substantially complete for the major construction packages including the STRABAG AG agreement for the mineral transport system.
"The announcement of our largest supply agreement to date with Cibra, Brazil's sixth largest fertilizer distributor, has enabled us to exceed the target peak aggregate POLY4 take-or-pay volumes intended to support stage 2 financing and further agreements are expected to be completed soon."
During the quarter we confirmed Archer Daniels Midland, one of the world's largest agricultural processors and food ingredient providers, as our North American partner and starch supplier, which serves to underline the confidence that our world-class distribution partners have in POLY4 and its place in the future evolution of the global fertilizer market.
"The coming months are a pivotal period for the Company as we work towards fully financing the construction of our world-class long-life polyhalite project."
Read the article online at: https://www.worldfertilizer.com/special-reports/03102018/sirius-minerals-releases-quarterly-progress-update/