Highfield Resources Ltd (ASX:HFR) has obtained a construction licence from the Townhalls (councils) of Undués de Lerda (Aragón) and Sangüesa (Navarra) for a mine gate and two underground declines slated to be developed at the Muga Potash Project in Spain.
In anticipation of receiving these essential licences, Highfield has already tendered and contracted the initial works and plans to begin on-ground construction works within the next few days.
“Pivotal milestone for the project”
"The grant of this construction licence in Aragón for the mine gate and the declines arrives at a time when the project and its financing are well advanced, and the geopolitical situation demands the start of Muga as soon as possible,” Highfield Resources CEO Ignacio Salazar said.
“This is a pivotal milestone for the project which allows us to start the construction of Muga in the next few days with the initial works around the mine gate.
“While we start construction, the company will focus on completing the financing and finalising the licensing process in Navarra.
“With this licence from Aragón, Highfield is now one big step closer to building the next European potash mine at Muga."
Skyrocketing fertiliser prices
The Muga project contains a measured and indicated mineral resource of 237.3 million tonnes at 12% potassium oxide, positioning it to be one of the largest Potash mines in Europe at a time when fertiliser prices are skyrocketing.
Given the construction of the mine declines is critical to the project development timeline, HFR says its decision to begin construction before the plant is developed will improve the internal construction plan.
The company is continuing to engage with the Townhall of Sangüesa and the Government of Navarra to complete the licensing process for the plant.