Highfield Resources Ltd (ASX:HFR) CEO Ignacio Salazar speaks to Thomas Warner from Proactive after updating the feasibility study for the company’s Muga Project. Salazar explains the rationale for the update, describing it as a reaffirmation of the “outstanding” numbers to a large extent. He highlights that 93% of the initial capital expenditure is now backed by firm offers or contracts. He goes on to outline the next steps, including some “relatively minor but important” but preliminary work that the company can achieve in advance of construction being fully green-lit. Salazar also discusses a salt offtake agreement with Maxisalt, a significant global trader, reinforcing the strategic importance of salt in their portfolio alongside potash. Salazar further explained the dual role of salt as both a revenue stream and an environmental strategy, with surplus used to backfill the mining project. Financing discussions revealed a secured €320 million with competitive private finance, and ongoing efforts with Macquarie and other entities to close the financing gap. Addressing the volatile potash market, Salazar attributes the price surges to COVID-19 impacts and geopolitical tensions, particularly sanctions on major potash producers Belarus and Russia. He anticipated a strong long-term potash market, reinforced by halted Russian projects.
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