JOHANNESBURG (miningweekly.com) – Spanish potash developer Highfield Resources has withdrawn from its nonbinding memorandums of understanding (MoUs) for potash offtake it signed with European fertiliser companies in May.
The ASX-listed company on Tuesday said that the first MOUs, signed with large European fertiliser companies for up to 320 000 t/y of K60 Muriate of potash (MoP) from its Muga potash mine, near Pamplona, had been replaced with nonbinding MoUs with fertiliser traders Keytrade, Ameropa and Trammo, which covered up to 600 000 t/y of K60 MoP, covering more than 100% of expected phase-one production from its flagship mine.
However, the company noted that it continued to have ongoing discussion with the European fertiliser companies and expected that it would still execute offtake contracts with these entities as the mine approached first production.
Highfield MD Anthony Hall said in a statement that the trading groups had an “excellent track record” in the global fertiliser market, including the company’s target markets. “We look forward to formalising these agreements as we move towards production,” he added.