JOHANNESBURG (miningweekly.com) – Spanish potash developer Highfield Resources has completed a scoping study for a staged 500 000 t/y sulphate of potash (SoP) operation by converting 430 000 t/y of muriate of potash (MoP) from the Muga potash mine.
Total capital expenditure (capex) for the operation was estimated at $147-million, with preproduction capital estimated at less than $100-million for the first phase of 250 000 t/y, the ASX-listed company reported on Thursday.
“The study we have completed presents highly compelling metrics for an SoP project that benefits significantly from the controlled supply of MoP from our Muga potash mine, once in production. Importantly, it is complementary to the Muga potash mine and is a mechanism to extract substantial additional margin on a portion of our MoP production,” said Highfield MD Anthony Hall.
He added that the Muga potash mine would not subsidise the SoP project. Based on the current analysis, the mine would receive a higher than budgeted sales price for its MoP production through sales to the SoP project.
The project would use the Mannheim process, which combines sulphuric acid and MoP with heat, to produce SoP.
SoP is a low-chloride fertiliser that has typically enjoyed a premium price relative to MoP and is used for higher value chorine intolerant crops, such as soft fruits, vegetables, turf and tobacco.
Highfield reported that its focus remained on moving the Muga mine into construction and to start production from the mine.
Last month, the company signed its first memorandums of understanding with three large European fertiliser companies for up to 320 000 t/y of K60 MoP in offtake from the Muga mine.
Highfield Resources could build a staged 500 000 t/y SoP operation at its flagship Muga potash mine.