WE RE ABOUT FERTILIZER FOR AFRICA, a fertilizer suitable for 21st century African agriculture Africa Fertilizer 2018
WHAT IS Polyhalite rock granules Air classification Crushing and milling Granulating IS A NATURAL, SINGLE SOURCE OF K, S, Mg & Ca WITH VALUABLE MICRO NUTRIENTS Notes: 1) Based on 90% polyhalite grade. Remaining content consists of halite, anhydrite, magnesite, kieserite, hexahydrite, szabelyite, gypsum, synenite, mica; 2) is the trademark name for Sirius Minerals flagship polyhalite product. 1
INTRODUCTION TO EFFICIENCY EFFECTIVENESS Improves FUE by delivering greater nutrient uptake High nutrient density delivers four macro nutrients in one easy-to-use, cost-effective granular delivery system B CaO Cu MgO Improves both yield and quality Improves macro and micro nutrient uptake Minimises crop losses through disease resilience Has a desirable nutrient release profile Granular product that handles, stores, blends and spreads effectively Mn Se FLEXIBILITY Low chloride and ph neutral product that can be used on all plants and soils in all growing climates Successful as a straight fertilizer or as a component of blend formulations No negative interactions with other fertilizers K 2 O Sr Fe Zn Mo S SUSTAINABILITY Improves soil strength, structure and nutrient legacy Reduces agriculture s impact on the environment by improving FUE, reducing erosion and nutrient loss Certified for organic use Allows a farmer to choose the timing of application Excellent environmental profile 2
COMPATIBILITY AND PRACTICALITY DRY BLEND AN-RP-KCl- Urea-DAP-KCl- Influence up to 50% (w/w) composition Compatibility Slightly improved ~ AN-RP dominated Slightly improved COMPACTED NPK COMPOUND Influence up to 50% (w/w) composition Abrasion resistance CRH Dust AN-RP-KCl- ~ ~ Improved Urea-DAP-KCl- Improved ~ Improved STEAM GRANULATED NPK COMPOUND Influence up to 50% (w/w) composition Abrasion resistance Impact resistance Dust AN-RP-KCl- Improved Improved Improved Urea-DAP-KCl- Improved Improved Improved HAS A POSITIVE IMPACT ON DRY BLENDS, COMPACTED AND STEAM-GRANULATED COMPLEXES Notes: IFDC methodology ratifies methods of Walker et al (1998) and published findings of Albadarin et al (2017). Sources: 66000-IFDC-66010-17 3
SIRIUS MINERALS R&D PROGRAMME Trials 260+ Crops 32 Countries 17 Collaborators 94 Notes: Trials as of January 2018 4
THE OPPORTUNITY 5 5
NPK Consumption (Mt of nutrients) AFRICAN FOOD SECURITY FERTILIZER CONSUMPTION MUST INCREASE TO SUPPORT AFRICA S FOOD SECURITY 1. Fertilizer use 2. Soil nutrient depletion 25 20 15 10 5 6 12 22 NPK mining (kg ha -1 yr -1 ) 80-89 70-79 60-69 50-59 40-49 10-19 0-9 0 Africa SE Asia Europe 30-39 20-29 SOILS MUST BE REPLENISHED TO MAXIMISE AND MAINTAIN YIELD Notes: 1) Baanate 2006, FAO; 2) Farm yield is calculated as the mean of on farm yield observations, additional potential yield is calculated as the highest observed yield. Sources: GRDC, Sirius Minerals Plc 6
AFRICAN YIELD GAP NUTRITION RESPONSIBLE FOR 50% OF THE YIELD GAP 3. Balanced fertilization 4. Higher yields USA 11 4-37%* East Africa 1 6-400%* West Africa 2 4-200%* Farm yield (t ha -1 ) *Yield gap % Additional potential yield FERTILIZER PLANS MUST GO BEYOND NPK Notes: 1) Baanate 2006, FAO; 2) Farm yield is calculated as the mean of on farm yield observations, additional potential yield is calculated as the highest observed yield. Sources: GRDC, Sirius Minerals Plc 7
AFRICAN SOIL CONDITIONS POOR SOIL CONDITIONS DUE TO BROAD-SCALE NUTRIENT MINING Soil K conditions Soil Mg conditions Soil Ca conditions SEVERE SOIL DEFICIENCIES IN K, Mg AND Ca ACROSS AFRICA Notes: Average continent value: K = 200 ppm; Mg = 324 ppm; Ca = 1847 ppm Source: Hengl et al 2015 8
CROPS RESPONSE TO CHLORIDE AND MAGNESIUM NUTRIENT SOURCE WILL SIGNIFICANTLY IMPACT CROP RESPONSE Chloride sensitive crops Magnesium hungry crops Very chloride sensitive Chloride sensitive Relatively chloride tolerant Chloride demanding Very responsive Moderately responsive Responsive Citrus fruit Deciduous fruit Melons Beans Nuts Tobacco Coffee Tea Peas Tomatoes Potatoes Alfalfa Spinach Grapes Cotton Cassava Cereals Corn Sugarcane Sunflowers Oil crops Asparagus Beetroot Sugar beet Date palm Grass Tea Tobacco Coffee Potatoes Oil palm Tomato Citrus Pineapples Corn Sugarcane Cotton Grapes Soybeans Banana Tree fruits Wheat Rice Oats Alfalfa Grass/hay Soybeans Cabbage HIGH-VALUE CROPS REQUIRE CHLORIDE-FREE K 2 O AND MAGNESIUM FERTILIZATION WHILE MANY BROAD-ACRE CROPS BENEFIT FROM LOWER CHLORIDE APPLICATIONS Notes: 1) Chloride sensitive crops based upon CRU report SOP and NOP Outlook 2012; 2) Magnesium responsive crops identified by Hagstrom, SKMG Export (1991) published in CRU report SOP and NOP outlook 2012. Sources: CRU; Sirius Minerals Plc 9
Corn Broad-acre FIT IN CURRENT POPULAR NPK AFRICAN BLENDS: BROAD-ACRE CROPS % decrease in chloride content 1 20:10:10 NPK composition (% of input) -38% N P₂O₅ K₂O S MgO CaO Cl 8 N P₂O₅ K₂O S MgO CaO Cl Traditional 20 10 10 1 14 8 Input 35% 22% 16% 27% Series 5 Input 20 10 10 7 2 6 5 35% 22% 8% 35% Urea DAP MOP Limestone Traditional Urea DAP MOP 2 23:10:5+3S+2MgO NPK composition (% of input) N P₂O₅ K₂O S MgO CaO Cl % decrease in sources 5-40% N P₂O₅ K₂O S MgO CaO Cl Traditional 23 10 5 3 7 4 4 3 23 10 5 7 2 6 1 Input 41% 22% 8% 15% 14% Input 42% 22% 36% Urea DAP MOP Kieserite Dolomite Urea DAP Traditional Notes: 1) Purity levels: urea (N:46%); DAP (N:12%; P 2 O 5 :46%); MOP (K 2 O:60%); (K 2 O:14%; S:19%; MgO:6%; CaO:17%); kieserite (MgO:25%, S:20%), TSP (P 2 O 5 : 46%, CaO: 20%). Source: Sirius Minerals Plc 10
Oil palm Tobacco FIT IN CURRENT POPULAR NPK AFRICAN BLENDS: HIGH-VALUE CROPS 1 12:12:12+6S+0.12B NPK composition (% of input) N P₂O₅ K₂O S MgO CaO Cl B 12 12 12 6 4 3 Traditional 0 Input 22% 26% 6% 17% 15% 13% 1% AN DAP MOP SOP Kieserite Boron Filler % increase in nutrient content 54 46 12 12 12 12 12 12 9 6 7 2 4 Traditional +17% N P₂O₅ K₂O S MgO 12 12 12 9 2 7 4 0 Input 22% 26% 6% 6% 39% AN DAP MOP SOP CaO Boron Cl 1% B 2 12:12:17+2MgO NPK composition (% of input) N P₂O₅ K₂O S MgO CaO Traditional 12 12 17 2 2 14 Input 23% 8% 29% 29% 9% Urea DAP RPhos MOP Kieserite Cl % increase in nutrient content 45 12 12 17 2 2 +18% 5 53 12 11 17 2 6 N P₂O₅ K₂O CaO 12 11 17 6 2 5 11 S MgO Input 19% 17% 12% 21% 31% Urea DAP RPhos MOP Cl Traditional Notes: 1) Purity levels: urea (N:46%); DAP (N:18%; P 2 O 5 :46%); MOP (K 2 O:60%); (K 2 O:14%; S:19%; MgO:6%; CaO:17%); kieserite (MgO:25%, S:20%), TSP (P 2 O 5 : 46%, CaO: 20%). Source: Sirius Minerals Plc 11
TRIAL RESULTS 12
CROP TRIAL HIGHLIGHTS has proven benefits to crop yield Tea 1,6 +6% Cotton 2,6 +56% Tobacco 3,6 +19% Coffee 4,6 +7% Tomato 5,6 +74% Notes: 1) 100% v SOP; 2) 100% v MOP-balanced; 3) Blend v SOP-balanced; 4) v MOP; 5) Blend v MOP; 6) Field trial. Sources: Sirius Minerals. Yunnan Agricultural University, Virginia Tech University, Tobacco Research Institute of Tanzania, Universidade Federal de Lavras, University of Florida. Results as of January 2018 13
TANZANIAN SOIL FERTILITY STATUS SIGNIFICANT AREAS OF AGRICULTURAL LAND ARE BELOW CRITICAL LEVELS Soil K conditions Soil Mg conditions Soil Ca conditions IS SOIL FERTILITY THE ONLY DRIVER FOR FERTILIZER PLANS? Notes: Adapted from Hengal et al. 2015; 2) Nutrient offtake calculation based actual and potential yields from Global Yield Gap Atlas and Water Productivity. Source: Sirius Minerals Plc; Global Yield Gap Atlas and Water Productivity, University of Nebraska (2015) 14
REGIONAL SCALE TRIAL PROGRAMME CHLORIDE TOLERANT CROP ON P & Ca RESPONSIVE SITE Corn is the largest crop grown in Tanzania with 6.7 Mt produced, accounting for 24% of all crops grown Around 80% of corn production is from small scale farmers with 65-80% of produced corn consumed within the household 1 The Southern Highlands produces approximately half of all corn in Tanzania 1 Initial soil analysis Site Soil parameter Nutrient content (mg kg -1 ) Map of trial locations ph OM (g kg -1 ) CEC (cmol kg -1 ) N P K Ca Mg S ARI - Uyole 5.6 20 17.66 1650 2.06 917 1240 149 13.04 Ismani 5.6 8.4 14.86 2400 4.16 234 774 403 36 Mbimba 5.2 18.4 15.84 2200 5.22 246 394 149 15.73 Milundikwa 5.5 25.5 16.3 2530 5.17 445 944 257 9.18 Seatondale 5.5 6.1 4.88 1770 13.33 117 356 192 20.18 Suluti 5.3 6.2 12.08 2070 10.05 230 270 210 12.03 Trial site ARI trial site at headquarters MULTIPLE TRIAL SITES PRODUCES ROBUST DATA ACROSS DIFFERENT ENVIRONMENTS Notes: 1) Wilson and Lewis (2015). Sources: Sirius Minerals Plc, Google Earth, FAO, Agricultural Research Institute Uyole 2015. 15
YIELD RESPONSE TO NPK FERTILIZER PLANS BROAD SPECTRUM FERTILIZATION WITH SUPPORTS CORN YIELD Key comments Corn yield 1,2 (t ha -1 ) Application of potassium-based fertilizers prevents nutrient mining in the long term and aids crop growth Across all locations in the Southern Highland region, corn responded positively to a multi-nutrient fertilizer plan On average, recorded a 14% higher grain yield than MOP OUTPERFORMED STRAIGHT POTASSIUM Notes: 1) GENSTAT means; 2) The recommended rate of 120 kg N ha -1 and 30 kg P 2 O 5 ha -1 from urea and DAP with 20 kg K 2 O ha -1 supplied from MOP or to all plots except No Fertilizer plots. 3) ARI Uyole excluded from average due to high initial soil K. Source: Agricultural Research Institute Uyole (2015) 16
THE EFFECT OF POTASH SOURCE WHAT SHALL WE USE TO REPLACE OFFTAKE? Key comments Corn yield 1,2 (t ha -1 ) Nitrogen and phosphorus are recommended in Tanzania due to the high soil potassium content Application of potassium fertilizer is valid in high proportion of the region On average 3, the option improved yield by 9% compared to N+P and 13% compared to MOP At 67% of sites, MOP resulted in lower yields than the N+P control THE WRONG K SOURCE CAN CAUSE PROBLEMS Notes: 1) GENSTAT means; 2) All plots were supplied with the recommended rate of 120 kg N ha -1 and 30 kg P 2 O 5 ha -1 from urea and DAP with 20 kg K 2 O ha -1 supplied from MOP or ; 3) ARI Uyole excluded from average due to high initial soil K. Source: Agricultural Research Institute Uyole (2015) 17
THE MICRO-DOSE RESPONSE 18 18
Total biomass (t ha -1 ) Commercial Yield (t ha -1 ) Yield (t ha -1 ) STRAIGHT AND BLEND YIELD RESPONSE CROP RESPONSE IS GOVERNED BY THE LAW OF THE MINIMUM Total corn biomass 1 Tomato commercial yield 1 Potato commercial yield 1 MOP SOP blend 2 MOP SOP-M MOP+S+Ca blend 3 40% 38 +8% 36 Same biomass ~40% less K 2 O 34 32 30 28 26 +21% 24 0 50 100 150 200 250 0 50 100 150 200 250 300 350 22 0 50 100 150 200 250 300 350 400 K fertilizer rate (kg K 2 O ha -1 ) Application rate (kg K 2 O ha -1 ) Application rate (kg K 2 O ha -1 ) BRIDGES THE SOIL SUPPLY/CROP DEMAND GAP Notes: 1) GENSTAT regression; Sources: Sichuan Academy of Agricultural Science; 19000-SAAS-19012-14, University São Paulo; 4000-USP-4016-15, University of São Paulo. Variety Agata, 4000-USP-4012-14 19
AND MICRO-DOSING GETTING MORE FROM LESS WITH BALANCED FERTILIZATION Precision farming technique small dose of fertilizer is placed with seed at planting time s higher value K units supports material yield improvement on low K status soils by also supplying additional sulphur, magnesium and calcium to replenish soil deficiencies Transition Advanced More yield from the same K will help drive higher profits and enable reinvestment NUTRITION ENHANCES PERFORMANCE IN THE HIGH RETURN: UNIT INVESTMENT ZONE Notes: Detailed examples can be found at poly4.com 20
SUSTAINED MACRO-NUTRIENT DELIVERY MACRO-NUTRIENT UPTAKE RESULTS FROM EUROPEAN TRIALS Improvements in macro-nutrient uptake compared to MOP/NPK plan 1 N+P control N+P+MOP N+P+ N -2% +13% Initial soil analysis 1 Soil measurement Value P (mg kg -1 ) 55 P -1% +4% K (mg kg -1 ) 103 K -9% +8% Mg (mg kg -1 ) 95 Ca +9% +19% Ca (mg kg -1 ) 1897 Mg +7% +20% S (mg kg -1 ) 4 S -5% +35% OM (g kg -1 ) 19 OUTPERFORMED MOP IN MACRO-NUTRIENT UPTAKE Notes: 1) The results are based on 11 European trials. Source: Sirius Minerals Plc 21
SUSTAINED MICRO-NUTRIENT DELIVERY MICRO-NUTRIENT UPTAKE RESULTS FROM EUROPEAN TRIALS Initial soil analysis 1 Improvements in micro-nutrient uptake compared to MOP/NPK plans 1 B Control MOP +14% +14% Soil measurement Value B (mg kg -1 ) 0.6 Mn -3% +15% Mn (mg kg -1 ) 24 Zn -12% +13% Cu +23% +44% Zn (mg kg -1 ) 8.9 Cu (mg kg -1 ) 5.7 Fe -12% +5% Fe (mg kg -1 ) 95 OUTPERFORMED MOP IN MICRO-NUTRIENT UPTAKE Notes: 1) The results are based on 11 European trials. Source: Sirius Minerals Plc 22
Product Application (kg ha -1 ) Yield (t ha -1 ) THE SIMPLE SOLUTION Phosphate/ composition (% of input) Corn Wheat Cassava DAP 30% 70% 100 5 14 10 13 4 12 N 7 Eastern region P K S Mg CaO DAP 40% 60% Eastern region 18 12 N P K S Urea 16% 26% 19% 39% N DAP Nigeria P 2 O 5 8 MOP K 2 O 4 10 Mg CaO 12 12 17 8 2 10 7 S Mg CaO CI 58 100 59 Application rate and potential yield overtime 600 400 200 0 600 400 200 0 200 150 100 50 0 Yield Application rate kg/ha 229 91 244 140 183 67 Micro-dosing Transition 571 452 191 Advanced 15 10 5 0 8 6 4 2 0 60 40 20 0 23
SUMMARY Diverse African cropping is responsive to high specification, low chloride fertiliser plans is a practical proposition for blend improvement Consistent yield improvements are seen when comparing standard practice to the potential in commercial farming situations Current decisions for subsistence agriculture are understandable and micro-dosing is appropriate offering the best value for money inclusive fertilizer plans also offer greater potential with the micro-dosing strategy MULTI-NUTRIENT FERTILIZER POLICIES IMPROVE YIELD AND FERTILIZER USE EFFICIENCY 24
THANK YOU Any questions please contact: robert.meakin@siriusminerals.com poly4.com siriusminerals.com 25