Hancock Prospecting (Pty) Ltd is pleased to announce a major investment in a natural fertilser business, by way of a US$300M (A$395M) investment in UK based Sirius Minerals PLC (Sirius) subject to various conditions precedent being satisfied comprising the purchase of:
– A 5% royalty stream on the first 13Mtpa of product (and 1% thereafter) for US$250M
– The right to purchase up to 20,000 tonnes of product per annum for use on HPPL’s Australian agricultural operations.
Sirius is developing the North Yorkshire Polyhalite Project in the United Kingdom. Polyhalite is a naturally occurring mineral containing four of the six nutrients key to plant growth – potassium, sulphur, magnesium and calcium. The mined polyhalite will be marketed as a multi-nutrient agricultural fertilizer.
Spanning the world’s largest polyhalite resource, the project involves the construction of a mine, a 37km underground conveyor system, and materials handling and port facilities. With no waste rock produced from mining, the project will have a very small surface footprint. The first phase of the project will involve the development of 10 million tonnes of annual capacity, with potential to quickly increase to 13 million tonnes and (subject to further approvals) 20 million tonnes per annum.
“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 fertiliser, 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 warmly welcomed Mrs. Rinehart and the Hancock investment saying that: “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.”
Media Release
The project is significantly advanced, including with all major approvals granted and a large majority of mineral rights agreements in place with relevant landowners, who will also benefit from royalties. In addition to jobs and economic growth, Sirius will also contribute a share of revenues to the York Potash Foundation, for benefit of the community.
