Australian Potash has signed a longform binding agreement with Tier 1 partner Mitsui & Co. (Asia Pacific) Pte. Ltd. (Mitsui) for the supply of 30 000 tpy of K-Brite sulfate of potash (SOP) from the Lake Wells SOP project (LSOP).

 

The third deal now brings the company’s total committed offtake to a remarkable 100,000 tpa of the project’s 150,000 tonnes of sulphate of potash, expected to be produced annually from the West Australian mine. 

 

Mitsui is one of the largest trading and investment companies worldwide, and Australian Potash’s agreement provides it with exclusive sales and distribution rights throughout Asia - excluding China, which is already secured by a 50,000 tpa offtake with Migao International.

 

Managing Director and CEO, Matt Shackleton, Australian Potash, commented: “The relationship with Tier 1 Global fertilizer distributor Mitsui & Co. (Asia Pacific), reflected in this long-form binding offtake agreement, opens the Asian ex-China fertilizer markets to the K-Brite and Australian Potash brands.

 

This pricing platform incentivises Mitsui to maximise K-Brite’s sale price in the market.

 

“Mitsui & Co. are a titan in the world’s major fertilizer, logistics and distribution sectors, and the marketing and distributorship of SOP is integral to their brand presence in Asia. It is enormously gratifying that APC’s K-Brite brand will be traded through the Mitsui network in these lucrative and growing Asian markets.

 

“We are now working to finalise the last part of the offtake programme, which we expect to update shareholders on shortly. In addition to that, we continue to progress along the approvals pathway, with firm dates now agreed with the EPA, and the financing programme. This quarter will be a very fruitful period for the company’s shareholders and stakeholders and the development of the Lake Wells SOP project.”