Name of the Project
Muga potash project.

Location
The project is located in the communities of Undués de Lerda and Urriés, (Aragón), and Sangüesa and Javier (Navarra), in Spain.

Project Owner/s
Highfield Resources.

Project Description
A revised plan has proposed a two-phased development of the Muga project, with average production in the first phase estimated at 500 000 t/y of muriate of potash (MoP) and one-million tonnes of MoP in the second phase.

The revised mine plan yields an estimated mine life of 27 years, comprising about 18 years of mine life from Muga measured and indicated resources, and a further nine years from Muga inferred tonnes and the Vipasca exploration target.

Muga has estimated measured and indicated resources of 235-million tonnes grading 12.35% potassium oxide (K₂O) and inferred resources of 32-million tonnes. The Vipasca exploration target has estimated resources from 127-million to 255-million tonnes grading 12% K₂O to 16% K₂O. Underground access will be by twin parallel declines from surface over 2.6 km to a depth of about 350 m.

The primary production method will be room and pillar, with an advancing chevron pattern approach suited to potash mining.

Processing will be by conventional flotation featuring a two-stage crushing process, attrition scrubbing and a hydrocyclone desliming facility with a potassium chloride froth flotation circuit, supplemented by a crystalliser circuit.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of €1.16-billion and an internal rate of return of 23%.

Capital Expenditure
Phase 1 will cost about €342-million to implement and Phase 2 €199-million.

Planned Start/End Date
The project is expected to start about one year after the receipt of the environmental permit to allow for sufficient time to secure all the necessary construction permits.

Latest Developments
Highfield has received an environmental permit for the project and will now focus on securing the mining concession, as well as construction permits required for its two-phased development.

The environmental permit has placed some conditions on the Muga project to minimise environmental impacts, but Highfield has said that none of the requirements appear to be new ones that have not already been incorporated into the project planning.

Key Contracts and Suppliers
SRK (revised mine plan), Acciona Infrastructure (construction contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Highfield Resources tel +34 948 050 577.