Highfield Resources Ltd (ASX:HFR) (FRA:23H) has welcomed the independent Social Baseline Study of the Muga Potash Mine from the Government of Navarra in Spain which has concluded that the mine represents a significant positive socioeconomic potential for the local region.
The ‘Observatorio de la Realidad Social’, a social department of the Government of Navarra, released the study on March 4, 2021, determining that the mine will be able to reverse local depopulation which is severely affecting the local communities.
It also concluded that it could reverse the higher rates of local unemployment and that Muga could significantly boost the economies of the rural Navarran communities with indirect business opportunities.
The report also outlines eight collaborative strategies for the regional government, authorities and the company to follow in order to achieve a sustainable implementation and growth.
“Positive social impact”
The study reviewed a wide range of econometric data and includes analysis and findings resulting from the direct engagement with local authorities, government officials, relevant public institutions and other Muga Mine stakeholders.
Highfield Resources chief executive officer Ignacio Salazar said: “We are delighted to read this independent report published by the Government of Navarra and its conclusions about the positive social impact of the Muga Project.
“We welcome the rigour and energy that went into producing this study and the proactiveness of the Government of Navarra in undertaking this task early in the process.
“At the same time, we appreciate the endorsement of the Government of Navarra to the contributions of Muga and look forward to working together with the Government, local communities and all interested parties to get the Muga Mine into production for the benefit of all stakeholders.”
Location of Highfield’s Muga-Vipasca, Pintanos and Sierra del Perdón Tenement Areas in Northern Spain.
Muga Potash Project potential
Highfield is focused on moving its flagship low-cost, low-capex Muga Project in Spain into the construction phase.
The tenements (Muga-Vipasca, Pintanos, and Sierra del Perdón) are in the Ebro potash producing basin in Northern Spain, covering an area of around 276 square kilometres.
Once in production, the project is forecast to be one of the highest margin potash mines in the world.
The engineering and design work is ready and the company is currently progressing the last stage of the Mining Concession.