Sirius Minerals Plc ('Sirius') announced the signing of an agreement with Archer Daniels Midland Company ('ADM'), for the supply of binder for its POLY4 product and names ADM as the Company's North American off-take partner. Sirius entered into an offtake agreement with ADM in 2014 and subsequently replaced that agreement with an expanded agreement in 2015. The expanded agreement is for a period of seven years from commercial production and has two five-year extension options to supply volumes of POLY4 increasing to 1.5Mtpa in year five, with an option for an additional 0.5Mtpa.

ADM's fertilizer division, ADM Fertilizer, has operated since 2004, growing its distribution footprint to 14 river terminals, 12 interior terminals and operating in the wholesale distribution spaces as well as the farm focus space in 2016. The Company's granulated POLY4 product will be produced by extracting polyhalite from its Woodsmith Mine, crushing and grinding the mineral and then granulating the resulting powder using a starch binder under a patented process. The agreement between ADM and Sirius covers three principle areas: ADM will supply Sirius with binder for an initial period of five years from commencement of production with renewal options; Sirius will design and construct a binder handling facility with the support and expertise of ADM, at or close to, the Company's materials handing facility in Teesside; and ADM will continue its existing research and development programme on binders for POLY4 for a further period of three years.

These research activities will help to evolve processes to develop the most efficient and effective methods for the granulation of POLY4. As part of the binder supply agreement, ADM is assessing how best to service the contract for the long-term. This assessment will include looking at the potential feasibility of constructing a new processing facility in close proximity to Sirius' operations in Teesside to service both Sirius' needs as well as supply for the broader UK market.