Highfield Resources Ltd (ASX:HFR) (FRA:23H) has delivered to mining authorities of Madrid, Aragón and Navarra the last report required of the Mining Concession documentation submitted for the Muga Potash Project in Spain.
This was a positive report from the environmental department of Aragón in relation to the project.
Following the submission on May 10, the company has been advised that if no further clarification is required by the authorities, the next step is to send the text of the Mining Concession document to the Central Government’s lawyer for its legal review.
This is prior to the Mining Concession award being issued.
Highfield continues with the temporary reduction of 50% of all Highfield’s management and staff’s working time and salaries until the mining concession is granted. A similar reduction has been applied to all consultants.
In line with staff, the directors of the board have also implemented a reduction in their total remuneration by 50%.
Engineering and construction update
The flagship Muga Project is targeting relatively shallow sylvinite beds, across around 60 square kilometres in the provinces of Navarra and Aragón.
Mining is planned to commence at a depth of about 350 metres from surface and is therefore ideal for a relatively low-cost conventional mine.
During the quarter, Highfield prepared a HAZOP (hazard and operability analysis) report which covers the operational risk assessment and performance stress tests of the final designs.
Highfield plans to finalise these analyses while the project is pending the grant of the Mining Concession.
As soon as the concession is granted, the company plans to share the information with its construction partner, Acciona, and progress with the negotiation of the construction agreement and the project implementation.