A binding take-or-pay offtake agreement has been reached with EuroChem Trading GmbH (EuroChem) for up to 100% of Module I Sulphate of Potash (SOP) production from the Colluli Potash Project (the Agreement).
In June 2018, Danakali reached a binding take-or-pay offtake agreement with EuroChem Trading GmbH (EuroChem). Under the terms of the agreement, EuroChem will take, pay, market, and distribute up to 100% of the Colluli site’s SOP fertilizer production over a 10-year term, from the project’s date of commissioning. The agreement can be further extended by three years, if mutually agreed upon.
Following the agreement, the Colluli’s position as the most advanced and economically attractive SOP greenfield development project has been reinforced given that EuroChem is an outstanding partner with global reach and extensive fertiliser capabilities. The agreement he encourages the maximisation of netback pricing of SOP produced in the Colluli which will become first Africa-based provider of fertilizer in supply chain of EuroChem.
The announcement can be found here