Highfield Resources Ltd (ASX:HFR) has secured access to all land necessary in Spain’s Navarra region to build the Muga Potash Mine with the completion of an extensive expropriation process.
The company had previously either purchased land or obtained commitments to buy it from the landowners with the remaining areas where no private agreement had been previously reached, subject to the normal legal expropriation process in Navarra for projects of public interest.
“Key necessary step”
Highfield’s MD and CEO Ignacio Salazar said that ensuring access to all the land was a key necessary step to build the Muga mine.
"We would like to take this opportunity to thank the government for supporting a swift resolution and the Muga community and HFR’s team for achieving a successful outcome,” he said.
"Step by step, we are getting closer to building the Muga project.”
Expropriation process
To ensure access to the remaining land required for the project’s construction, including ground facilities, power lines and road access, the company initiated an extensive expropriation process on September 27, 2021, with the Government of Navarra.
In December 2022, the Government of Navarra approved and declared the urgent need to occupy these remaining areas by Highfield.
Following this declaration, the company, together with the government, met with those affected by the expropriation process to specify the areas affected and to try to agree on a price.
This process was largely a success and the company reached an agreement with most landowners. For a small minority where no price agreement was reached, an official process will be run by the government to determine a fair market price.
The process will in no way interfere with Highfield’s right to access and use the areas immediately.
Deposit paid
To allow the company to access the land, the final requirement was to make a deposit payment of €1.1 million as an advance payment of the final purchase price. This amount is as per the requirement in the government’s guidelines.
Highfield has now made the deposit and has been officially notified that it has fulfilled all requirements under the Navarran Compulsory Expropriation Law for immediate access and use of the lands.