Highfield Resources Ltd (ASX:HFR) has clarified that the Government of Navarra in Spain has not relinquished the Goyo Mining Concession, which is part of the flagship Muga Potash Project in the country’s north.
This follows a court decision that identified a procedural flaw in the internal administrative coordination process in relation to the granting of the Goyo Mining Concession.
Ruling being analysed
The company has been advised that the government is analysing the ruling in order to resolve the situation and correct this procedural flaw rapidly.
Goyo is one of the three Muga mining concessions and production from its mineralisation is only expected to happen after year six in the mine plan.
In a statement, the Government of Navarra said: "We have contacted the (Spanish) Ministry and are jointly analysing the steps to be taken, which must be coordinated between the Ministry and the governments of Aragon and Navarra.
"Our commitment is to rectify this procedural flaw in order to move forward as soon as possible to enable the implementation of this project, which has already been evaluated with sufficient rigour and in a coordinated way by all administrations.”
About Muga
Highfield Resources is planning to commence full-scale construction of its flagship low-cost, low-capex Muga Project as soon as possible having finalised the initial site preparatory work and having received all permits and key licences.
The 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.
Muga’s Mining Concession was granted in 2021, the ramp construction licence in Aragón in 2022 and the process plant construction licence in Navarra in 2023.
Unique project
It is a unique project as with shallow mineralisation and no aquifers above it, there is no need to build a shaft.
High-quality and readily accessible infrastructure is already in place in the region. Importantly, the Muga Project is in the heart of a European agricultural region with a clear deficit in potash supply.
In addition to Muga’s secure southern European location, since February 2022 events in Russia and Belarus have heightened the awareness of the strategic value of the Muga Project for Spain and the European Union.