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PERTH (miningweekly.com) – A prefeasibility study (PFS) into ASX-listed Highfield Resources’ Javier potash project, in Spain, has estimated that the project would have a net present value of more than $1-billion.
Based on a resource of 154-million tonnes, grading 12.9% potassium oxide, the Javier project would have a mine life of about 20 years and could deliver 860 000 t/y of potash.
The PFS estimated that the project would require a capital investment of about $250-million. It would have an internal rate of return of 48.4%, and earnings before interest, tax, depreciation and amortisation of $235-million in its first year of full production.
First production had been scheduled for 2016.
Highfield MD Anthony Hall said that the PFS demonstrated the significant advantages attached to mine access through a decline, underground conventional mining, flotation circuit processing, first world infrastructure and close proximity to markets.
“We are extremely fortunate to have a project that has real advantages across all elements of the value chain, from the mine to ultimate customer. All elements work together to drive the compelling project economics.”
He added that the company was focused on making the Javier project construction ready as soon as possible, adding that work had already started on a definitive feasibility study.