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Sirius Minerals' Woodsmith Mine on track to deliver

Sirius Minerals
Sirius Minerals

Sirius Minerals’ Woodsmith Mine is on track to deliver its first polyhalite and commercial production on time, figures for both the latest quarter and the first half of 2018 have confirmed, while construction is progressing in line with 2018 guidance.

The company has also procured substantial funding, a major pre-requisite going into their second stage of financing.

This comes just over a week after Sirius agreed a 2.5 million tonnes per annum supply deal for key markets in South America including Brazil, taking peak aggregate contract volumes to 8.2 Mtpa

Sirius Minerals’ CEO Chris Fraser said: “The business made excellent progress during the third quarter of 2018, 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.”