Highfield Resources Ltd (ASX:HFR) has entered into a binding take-or-pay offtake agreement with Padira Premium SLU/Maxisalt for the supply of vacuum salt.
Up to a third of first production
Highfield will provide Maxisalt with a minimum of 50,000 tonnes per annum under the agreement, with the option to sell up to 75,000 tonnes per annum of high-grade vacuum salt.
This agreement encompasses some 20-30% of the total phase one vacuum salt production expected at the Muga Mine.
The key provisions of the contract include a five-year commitment from the start of production, with product delivery slated for either the Port of Bilbao or the Port of Pasajes.
Pricing will be worked out in accordance with the prevailing standards of the Spanish vacuum salt market, and will be subject to mutual agreement by both parties.
Range of applications
Maxisalt is a globally recognised salt and chemical provider headquartered in Barcelona, Spain, that specialises in a wide range of salt applications.
These include the leather, tannery, pharmaceutical, chemical, paint and detergent industries.
The company’s focus extends to de-icing solutions, water softening, swimming pools and various industrial salt products.
This strategic offtake agreement reinforces Highfield's position as a key player in the salt production industry and marks a significant step towards the successful development of the Muga Mine Project.
CEO Ignacio Salazar said: “Muga is located centrally to an area with strong local potash and salt demand, representing a compelling competitive advantage.
“We are very pleased to sign this first salt offtake agreement for Muga with Maxisalt, a global trader with a strong market presence and track record.”
About Highfield
Highfield Resources, an ASX-listed potash company, is advancing its Muga Project in Spain after obtaining all required permits and licences. Full-scale construction is set to commence in 2024.
The Muga Project boasts shallow mineralisation, eliminating the need for a shaft, and benefits from existing infrastructure in a European agricultural region facing a potash supply deficit.
Recent events in Russia and Belarus have highlighted the strategic importance of Muga for Spain and the European Union.
Highfield holds potash tenements, including Muga-Vipasca, Pintanos, and Sierra del Perdón, in Northern Spain's Ebro potash producing basin, covering around 250 square kilometres.