In its H1 2020 report, ASX-listed Highfield Resources says negotiations with Komatsu Mining for the acquisition of two bolter miners continued during the half year and subsidiary Geoalcali, which will be the operator of the Muga potash mine in Spain’s Ebro Basin, expects to sign an equipment purchase contract once negotiations are satisfactorily completed.
The bolter miners will be used to complete the twin declines as part of the mine construction and are essential to provide underground access to the Muga deposit. “The signing of the bolter miners purchase contract will represent a significant contract award and a critical step in developing the Muga Project towards production.”
On the processing side, the basic design of the process plant is advancing well and detailed design is ongoing. Value engineering reviews will continue throughout the development of the engineering design to help ensure that costs are optimised. As part of this work, K-Utec AG Salt Technologies has completed the test work that will be used to detail the systems and components necessary for the dewatering and backfilling system and continues to progress the basic design work for the backfilling storage and placement systems. Geoalcali is also carrying out additional lab work to further optimise the salt quality specification that will be produced from the Muga mine.
The Muga project is targeting the relatively shallow sylvinite beds in the Muga project area that covers about 60 km2. Mining is planned to commence at a depth of approximately 350 m from surface and is therefore “ideal for a relatively low-cost conventional mine” says Highfield. The Vipasca permit area is located adjacent to the Muga project and covers approximately 27 km2. “The Vipasca permit is highly prospective for economic potash mineralisation, with a primary focus on the deeper, higher grade, P1 and P2 potash horizons.” Vipasca is a potential extension of the Muga project.
In product sales terms, during the half year Geoalcali continued the successful implementation of the Group’s sales and marketing strategy by signing two more non-binding offtake MOUs, the first of which was with Keytrade AG to provide up to 300,000 t/y of muriate of potash (MOP). The second MOU signed was with Maxisalt whereby Geoalcali will provide up to 500,000 t/y of salt to Maxisalt, comprising 400,000 t of vacuum salt, a higher value product, and 100,000 t of de-icing salt. Salt is produced as a by-product of the processing of potash.
In 2019, Geoalcali received a positive Declaración de Impacto Ambiental (DIA) in respect of the Muga project, meaning it has received the key environmental permit required to move its Muga project forward. Following the DIA award, Geoalcali has focused on securing the Mining Concession and the construction permits necessary to take the project into the construction phase. Despite delays due to COVID-19, Geoalcali estimates that the Mining Concession will be awarded during the fourth quarter of 2020.
