The remaining licence for the construction of a process plant for Highfield Resources Ltd (ASX:HFR)’s Muga Potash Mine in Spain has been granted by the local authority, the Townhall of Sangüesa in Navarra.
This was the last pending licence needed to begin full-scale construction at Muga and investors have responded strongly, driving shares as much as 32.18% higher on the ASX to A$0.76.
The local townhalls – or councils – of Undués de Lerda (Aragón) and Sangüesa (Navarra) are the responsible approving authorities for the mine gate and the process plant construction licences respectively.
Full-scale construction to begin
After the grant of the mining concession, these two licences were essential for the construction of the Muga project. The company can now start full-scale construction of Muga comprising the civil works, the process plant and the ramps.
To expedite the process, the company requested an amendment to the licence, which provided for the exclusion of a small parcel of public land that required a more extended licensing process.
This does not impact the construction of the Muga process plant and only slightly affects the southern ponds.
Highfield expects that this parcel of land will be included in the licence as construction starts.
Finalising the works around the mine gate area last year has given the company a good head-start on the overall construction plan, and it now plans to finalise the financing srategy, the remaining construction contracts and all other preparatory work before starting construction in the second half of 2023.
Closes a long permitting chapter
CEO Ignacio Salazar said: "The grant of the pending construction licence in Navarra for the process plant is a critical milestone for Muga.
“I do not think I am exaggerating by saying that we all feel this licence closes a long permitting chapter for Highfield.
“I would like to thank all our stakeholders, staff and shareholders for their continued support. The company will now focus on building Muga as soon as possible.”