Highfield awards new Muga contract

Staff reporter

ASX-listed Highfield Resources has signed a €56.9 million contract with Spanish firm Acciona Construccion for civil works at the proposed €449 million Muga potash project in Spain.

Highfield is still seeking project funding for Muga having posted an updated feasibility study in November last year. The company said this week it was hopeful of wrapping up negotiations with investors in the current quarter.

The 27-month Acciona contract follows the recent awarding of €48 million of underground mine development work to a joint venture between Portugal’s EPOS and TUNELAN of Spain.

Highfield said about two-thirds of its planned construction budget had been allocated.

“After signing with Acciona, Muga is ready to start building upon completion of funding and following [a] final investment decision,” the company said.

“Good progress is being made on the financing including discussions with several strategic investors which have signed non-binding term sheets, and are advancing due diligence, and negotiations.”

Spanish engineering company IDOM completed design and engineering of the civil works and urbanisation contract awarded to Acciona.


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