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Muga boosts Highfield's position on cost curve

19th January 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Potash developer Highfield Resources is likely to be the highest margin potash producer globally, with its Muga project, in Spain, expected to be the lowest-cost potash producer.

The ASX-listed company on Tuesday revealed results from an independent report by Argus FMB on behalf of the European project finance banking syndicate, which was based on the average potash prices achieved in 2015.

“The Argus FMB report provides independent, third-party validation that Muga is likely to position Highfield as the highest margin potash producer globally,” said Highfield MD Anthony Hall.

A 2015 optimised definitive feasibility study estimated that the Muga project could deliver more than one-million tonnes a year of granular potash, over a mine life of 47 years.

The project was estimated to have a net present value of $1.46-billion, with a Phase 1 capital expenditure of €267-million.

“We continue to believe we have the most compelling potash project globally, and this is the first of our portfolio of five projects that all appear to exhibit similar characteristics,” Hall said.

Edited by Creamer Media Reporter

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