Portugal’s EPOS and TUNELAN of Spain have signed on to complete €48 million of mine access and development work over 26 months at Highfield Resources’ proposed €449 million Muga potash project in Spain.
Under a construction and mining contract announced today, the EPOS-TUNELAN joint venture will build parallel 2.6km-long declines to access mineralisation at circa-350m vertical depth.
They will also excavate crosscuts and a ventilation-fan bypass gallery, establish underground areas and infrastructure for water, conveyor, electric, ore transfer and backfill operations, and complete at least 2km of drifts within the potash deposit.
TUNELAN Obras Subterraneas is about 10 years old; Empresa Portuguesa de Obras Subterraneas (EPOS) more than 100. They submitted a joint contract tender.
Australian Securities Exchange-listed Highfield is working to finalise debt and equity funding to start site works this half.
Its shares have risen by about 30% in the past month to A43c, capitalising the company at A$167 million.
“With progress being made on the remaining funding, we are signing the contract for the construction of the two declines and underground mining infrastructure,” Highfield CEO Ignacio Salazar said.
“Our team has delivered another major milestone that is key to allow us to start the construction of the main facilities at Muga.
“We are working hard to finalise the civil works and urbanisation contract.
“And with that, we are well prepared to start construction and build Muga to deliver a new and robust source of a critical fertiliser located strategically in the middle of the western European market.”
Design and engineering of the declines and underground infrastructure was completed by Systra-Subterra, which is also expected to provide technical support and supervision during construction of the Muga declines and underground works.
Spain and Latin America-focused Systra-Subterra provided mining engineering and technical services at Cabanasas and Las Cruces in Spain, Los Bronces and Chuquicamata in Chile, Quebradona in Colombia and Quellaveco and Antamina in Peru.
