Muga processing plant approved in Spain

29th March 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – ASX-listed Highfield Resources has been granted a construction license for the processing plant at its Muga potash project, in Spain.

"The grant of the pending construction licence in Navarra for the process plant is a critical milestone for Muga. I do not think I am exaggerating by saying that we all feel this licence closes a long permitting chapter for Highfield,” said Highfield CEO Ignacia Salazar, adding that the company’s focus was now on building Muga as soon as possible.

Highfield now has all the necessary permits to start full-scale construction of Muga. To expedite the process, the company has requested an amendment to the license, which excludes a small parcel of public land that would require an extended licensing process, but would not impact the construction of the process plant and would only slightly affect the southern ponds.

The parcel of land was expected to be included in the license as construction starts.

Highfield would now work to finalise a financing strategy, as well as the remaining construction contracts before starting construction in the second half of 2023.

An updated feasibility study for Muga estimated a capital cost of €436-million for the Phase 1 operation and €226-million for Phase 2. This was up from the previous estimate of  €398-million for the Phase 1 and €209-million for Phase 2.

C1 costs for the project have also increased from the €76/t estimated in 2021 to €91/t.

The mine plan for the Muga has been maintained with the project expected to have a 30-year mine-life and Phase 1 of the operation producing 500 000 t/y of potash and Phase 2 increasing production to one-million tonnes a year.