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Agrimin signs SOP off-take with Gavilon Fertilizer

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Australian sulphate of potash (SOP) company Agrimin Limited has signed a 50,000 tonnes/year off-take agreement with US distributor Gavilon Fertilizer.

Agrimin has now committed 70% of its planned SOP production so far, with three long-term off-take agreements. The deal with Gavilon is for a 7-year term with pricing based on USA market price data, Agrimin said in its statement.

Agrimin’s Mackay project has a planned production of 450,000 tonnes/year. The company has now secured off-takes totaling 315,000 tonnes/year.

In May 2021, Agrimin signed a 10-year deal with Sinochem Fertilizer Macao for 150,000 tonnes/year, and in January 2022 concluded a 7-year agreement with Nitron Group for 115,000 tonnes/year.

Mark Savich, CEO of Agrimin said: “Gavilon is another Tier 1 off-taker for Agrimin and we look forward to partnering with them to successfully market and sell Agrimin’s low carbon, organic SOP throughout the USA. The USA represents an important SOP market and we are delighted to secure an off-take partner which has one of the largest and most efficient wholesale fertiliser distribution networks in the country."

Read more on the Australian companies looking to be the country's first commercial producer of SOP from New AG International’s March/April 2022 issue.

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