THE company behind a potash mine planned for the North York Moors near Whitby, has signed an agreement to supply a million tonnes of the mineral a year to China.

Sirius Minerals has entered into the agreement with Yunnan TCT Yong-Zhe Company Limited (TCT) for ten years from 2017.

The companies have agreed a fixed price for the first three years with a re-negotiation of pricing from year four onwards.

The agreement contains certain conditions including collaboration on testing and results from crop trials of polyhalite in Yunnan as well as Chinese government approvals.

A signing ceremony took place today in Kunming and was attended by senior government officials from the Yunnan Province and senior executives from the Industrial and Commercial Bank of China.

Yu Yan Qing, chief executive of TCT, which has its head office in Kunming in the Yunnan Province and is one of the fastest growing domestic agricultural products companies in China, said: “We see great potential in polyhalite as an organic multi-nutrient fertilizer that can provide a competitive advance in agricultural efficiency and helping to increase crop yields and quality in China. This is an important step for a long term and prosperous relationship between TCT and Sirius Minerals.”

Chris Fraser, managing director and chief executive of Sirius, added: “This is a major milestone for the company that further demonstrates the market for polyhalite, supports the economics behind the project and will ultimately help to give confidence in the financing for construction.

“The offtake agreement is the latest endorsement of the global demand for polyhalite, its unique multi-nutrient qualities and the role that balanced fertilisation can play in the largest fertilizer market in the world. We look forward to working with TCT to realise the outstanding potential for polyhalite.”