Highfield Resources Ltd (ASX:HFR) has signed a purchase contract with Weir Minerals for important components of the process plant at the flagship Muga Potash Project in Spain that will enable it to finalise pre-construction activities.
Following its recent $18.1 million capital raise, HFR is well-positioned to finalise contracts for remaining long-lead items.
As of signing, 85% of planned equipment needs have been contracted, with the remaining 15%, which includes crossflow separators, dryers, thickeners and flotation columns, expected to be formalised in the coming weeks.
Highfield is focused on potash, a key fertiliser resource, with the development of its flagship low-cost, low-capex Muga Project in Spain at the fore of current efforts.
The Muga tenements of Muga-Vipasca, Pintanos and Sierra del Perdón, cover an area of around 276 square kilometres in northern Spain.
Once production is online, the project is forecast to constitute one of the highest margin potash mines in existence.
Key partnership with Weir Minerals
Weir Minerals will provide the primary and secondary concrete screen required for granulometric separation in the initial phase of crushing, grinding and desliming processes.
The hydrocyclones from Weir will be used to remove fine particles from the slurry prior to flotation.
“The signing of this supply contract with Weir Minerals is key to ensure that we are ready for construction," said Highfield Resources CEO Ignacio Salazar.
"This is another important milestone for Highfield and continues to highlight the progress and commitment of the company to the efficient construction of Muga.”
Weir Minerals is a mining technology business, providing solutions for smarter, more efficient and sustainable mining to a global customer base. It uses differentiated technology in extraction, concentration, and tailings management.
Unique geography requires no extra infrastructure
The shallow mineralisation and lack of aquifers above the deposit mean that no shaft or further infrastructure is required to access the potash supply.
Located in the heart of a European agricultural region with clear deficit in potash supply, the mine is positioned to offer relatively low cost and low capex potash.
