Navarre, Spain — ASX-listed potash developer Highfield Resources reports that it has completed a scoping study on its Sierra del Perdón Project in Spain that has confirmed strong project returns and a 20-year mine life. The study revealed the 100 percent-owned project would have an after-tax Net Present Value of US$527 million and an Internal Rate of Return of 38.5 percent. This is based on an average annual production of approximately 520,000 mt of granular K60 potash with cash operational expenditure in full production estimated at US$155/mt, including transport costs to target markets. The capital cost is estimated at US$233 million, inclusive of a 20 percent contingency. The project is located less than 50 km from Highfield’s flagship Muuga Potash Project, where the company recently completed a definitive feasibility study. Anthony Hall, Highfield’s managing director, said that while Sierra del Perdón is a fantastic second project for the company, the company’s focus remains firmly on the rapid development of its Muuga project. The company is currently working towards commencing construction at Muuga in the fourth quarter of this year, targeting an average annual production of some 1.123 million mt a year of granular K60 potash over an initial 24-year mine life. The company has two other potash exploration projects in Spain. All four projects are located in the country’s potash-producing Ebro Basin. In addition, Highland has applied for three new potash investigation permits in the province of Navarra.
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