Western Potash will partner with Archer Daniels Midland
The Canadian-based company Western Potash has entered into a binding offtake agreement with Archer Daniels Midland for 100% of the potash production (146,000 tonnes per annum) from the Milestone Phase I project.
Archer Daniels Midland is a world leader in agricultural sourcing, processing and transportation, and has built a vertically integrated global franchise with the sourcing, production and transportation capabilities to meet the needs of customers on six continents. Archer Daniels Midland will be utilizing both their transportation and sales expertise to create a direct sale channel to market in North America. The purchase of potash through a local off-take agreement substantially reduces the Western Potash’s cost to transport potash from the Phase I project to market, as well as expanding Archer Daniels Midland’s diverse agricultural portfolio.
“We are very pleased with the progress achieved on the Milestone Project to-date. The offtake agreement for the purchase of our Phase I Project potash with a reputable partner such as Archer Daniels Midland gives us great confidence in the final sale of our potash. The recent successful construction, drilling and start of operations to fill the crystal pond proves the project is on track to start production by late 2020. We look forward to the continued safe, on-budget and schedule completion of the project,” commented Fritz Venter, President and CEO of Western Potash.