Highfield Working with Authorities to Resolve Permit Issue at Muga Potash Project

Highfield Resources (ASX:HFR) is working with the Navarra government and Spanish authorities to resolve a procedural matter related to the Goyo mining concession at its flagship Muga potash project.

In an October update, the company said the Superior Court of Justice of Navarra had identified a procedural flaw in the coordination process between the Navarra and Spanish central governments regarding the concession’s approval.

“In a recent note published by the Government of Navarra, it was stated that both President (of Navarra) Ms. Chivite and Vice President (of Spain) Ms. Aagesen have agreed that the central and Navarra governments should continue working together to promote Mina Muga,” the company said in a January 31 release.

Muga covers 46 square kilometres in the provinces of Navarra and Aragón in Northern Spain.

According to Navarra President Maria Chivite, the project is the largest in Spain, with an investment of 150 million euros to its name. An investment of 700 million euros is being planned to complete the project’s construction.

“It should be noted that the promotion of this project will mean the creation of 800 jobs, an industrial development that has the participation of important international investors,” Chivite underlined.

Highfield shared that government sources have informed the company that the procedural matter raised by the Superior Court of Justice of Navarra can be resolved “within the framework of competencies.” With a clear roadmap in place to resolve the situation, the company said it will be able to adhere to a timely schedule for Muga's construction.

This past September, Highfield entered several binding agreements with multiple companies to raise US$220 million. The company said at the time that the money would be enough to fund Phase 1 of the project.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.