Highfield awards €48m Muga decline contract
Australia’s Highfield Resources has awarded a €48-million contract for the construction of the declines and underground mining infrastructure at the Muga-Vipasca potash project, in Spain.
Mining specialist contractors Epos-Empresa Portuguesa de Obras Subterraneas and Tunelan-Obras Subterraneas were awarded the contract.
Epos and Tunelan submitted a joint offer.
Highfield explained that the combination of these two companies would take advantage of the synergies created by Epos’ experience in multiple mining and underground construction projects in different parts of Europe and the Americas, along with Tunelan’s local knowledge of Spanish construction regulations, as well as its extensive practical working experience with equipment similar to that which would be used in Muga.
The contract value represents about 11% of the Phase 1 capital expenditure of €449-million and just under a third of the total planned contract-construction budget.
“With progress being made on the remaining funding, we are signing the contract for the construction of the two declines and underground mining infrastructure. Our team has delivered another major milestone that is key to allow us to start the construction of the main facilities at Muga,” said Highfield CEO Ignacio Salazar.
He added that the company was working to finalise the civil works and urbanisation contract.
“With that, we are well prepared to start construction and build Muga to deliver a new and robust source of a critical fertiliser located strategically in the middle of the western European market.”
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