Name of the Project
Muga potash project.

Location
About 50 km to the south-east of Pamplona, Spain.

Project Owner/s
Australian potash company Highfield Resources.

Project Description
An update on the Muga feasibility study has reconfirmed the compelling economics of the project.

The mine plan is based on proven and probable ore reserves of 104.3-million tonnes grading 10.2% potassium oxide, which includes the abutting exploration target.

The plan proposes the delivery of about one-million tonnes a year of muriate of potash – Phase 1 and Phase 2 will both produce 500 000 t/y – over a mine life of 30 years, comprising about 18 years of mine life from ore reserves and 12 years from additional mineral resources and the exploration target.

Underground access will be by twin parallel declines stretching 2.6 km to a depth of about 350 m.

The West decline will be developed with a bolter-miner using continuous haulage systems to transport mined material to surface; the East decline will be developed using road-headers. The same type of equipment will be used to develop underground infrastructure, including workshops and service areas such as emergency evacuation chambers, pumpstations and electrical rooms.

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 €1.82-billion and an internal rate of return of 21%.

Capital Expenditure
The project has an estimated capital cost of €436-million for the Phase 1 operation and €226-million for Phase 2.

Planned Start/End Date
Not stated.

Latest Developments
Highfield Resources has terminated its senior secured project finance facility after the last lenders, ING, HSBC and Caja Rural de Navarra, agreed to exit.

Highfield said the termination was necessary to avoid accruing further commitment fees under terms that were no longer suited to its current cash flow prospects. 

The facility, first formalised in December 2022, with additional lenders joining in 2023, required Highfield to pay commitment fees. Its termination means no further such fees will be incurred.

The step comes as Highfield leans into cash‐preservation mode and seeks greater financing flexibility amid broader pressures facing the potash sector. Management is prioritising alternative funding structures and maintaining operational readiness for the Muga project.

Highfield is committed to advancing the project and is exploring funding options aligned with its strategy and current “cash preservation approach”.

Key Contracts, Suppliers and Consultants
IGAN Consulting Group (revised mine plan).

Contact Details for Project Information
Highfield Resources, tel +34 948 050 577 or email info@geoalcali.com.