Highfield Resources Ltd (ASX:HFR) has received “authorisation to build on non-urbanised land” from the Government of Navarra, which allows the company to build the Muga Potash Mine’s process plant within the municipality area of Sangüesa.
This milestone follows the construction licence grant for the mine gate and declines from the town hall of Undués de Lerda (Aragón) and the licence for the construction of the electricity line from the main network to the Muga Mine by the town hall of Sangüesa (Navarra).
Highfield is focused on the construction of its flagship low-cost, low-capex Muga Project in Spain having been granted the Mining Concession in July 2021 and the construction licence in Aragón in June 2022. Initial site works for the construction of the Muga mine gate and the two underground declines commenced shortly thereafter.
The Muga Project is in the heart of a European agricultural region which has a clear deficit in potash supply. In addition to its secure southern European location, since February 2022 events in Russia and Belarus have increased the awareness of the strategic value of the Muga project for both Spain and the European Union.
Highfield’s potash tenements (Muga-Vipasca, Pintanos,and Sierra del Perdón) are in the Ebro potash-producing basin in Northern Spain, covering an area of around 250 square kilometres.
“The authorisation for the process plant from the Government of Navarra was the necessary step to confirm the adequacy of the Muga project to all aspects of urbanistic planning legislation related to its location in Sangüesa, Highfield Resources CEO Ignacio Salazar said.
“We remain deeply engaged with the administrations to expedite the final step in the construction licence in parallel to, and as we finalise, the construction works around the mine gate.”
Important prerequisite
In line with Navarran licencing and procedural laws, the town hall of Sangüesa was required to seek authorisation from the Government of Navarra to officially allow construction of the process plant on non-urbanised land.
A thorough review of the Muga’s process plant construction against Sangüesa’s urbanistic plan and any other land management legislation was undertaken as well as confirming there were no potential constraints related to its location.
The town hall of Sangüesa still needs to finalise the granting of the process plant construction licence, however, the authorisation granted by the Government of Navarra is a very important prerequisite and pivotal milestone.
To obtain this authorisation, the Government of Navarra, the town hall of Sangüesa and Highfield maintained significant levels of engagement and will continue to work together to expedite the grant of the process plant construction licence.