Junior potash miner Highfield Resources announced on March 12 that it has awarded the contract for the construction of the declines and underground mining infrastructure at the Muga-Vipasca Potash Project (Muga) to the joint venture formed by mining specialist contractors EPOS-Empresa Portuguesa de Obras Subterráneas SA and TUNELAN-Obras Subterráneas SA (EPOS-TUNELAN).
“With progress being made on the remaining funding, we are signing the contract for the construction of the two declines and underground mining infrastructure,” said Highfield CEO Ignacio Salazar. “Our team has delivered another major milestone that is key to allow us to start the construction of the main facilities at Muga.”
Highfield said the EPOS-TUNELAN lump-sum based contract value (€48 million) is in line with the estimated capital cost included in the Feasibility Study published on Nov. 7, 2023. However, the company said a Final Investment Decision needs to be reached by Highfield and funding completed as a condition precedent to initiate any payment under this contract.
“We are working hard to finalize the Civil Works and Urbanization contract,” Salazar said. “And with that, we are well prepared to start construction and build Muga to deliver a new and robust source of a critical fertilizer located strategically in the middle of the western European market.”