Australian Potash (ASX: APC) has executed its second offtake agreement, this time with Singapore-based Migao International signing on for the supply of 50,000 tonnes per annum (tpa) of premium K-Brite sulphate of potash from the Lake Wells Sulphate of Potash Project (LSOP) in Western Australia.
Australian Potash’s offtake under binding term sheet agreements to date with Redoxi and Migao total 70,000 tpa.
Managing Director and CEO, Matt Shackleton, said the company is well advanced in discussions with further Tier 1 offtake partners covering Asia (ex-China), Europe and the Americas
“We are pleased to announce the second binding term sheet for offtake supply, covering sales and distribution rights to K-Brite in the world’s largest SOP market, China,” Mr Shackleton said.
“The management teams of both APC and Migao have developed a co-operative and trusting relationship over the course of the LSOP project development, which is reflected in this binding offtake position.
“From their position as one of China’s largest Mannheim SOP producers, Migao is ideally positioned to distribute the LSOP K-BriteTM into their longterm supply chain relationships in China.
“Notwithstanding restrictions on movement due to the COVID pandemic, APC continues with its corporate activities, including progressing the offtake programme.
“Our strategic intention remains to secure the majority of the LSOP output under offtake, with now 70,000 tonnes, or approximately 45% of the targeted output of 150,000 tpa, agreed to.”