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Highfield Resources Gains Grid Power Supply For Muga Potash From Iberdrola

Highfield Resources (ASX:HFR) has added grid electricity supply to the growing list of infrastructure items ticked for its flagship Muga Potash Mine in northern Spain.

Spanish public multinational electric utility company Iberdrola SA (BME:IBE) has reserved up to 60 MVA of electrical supply for the Muga Mine at its Rocaforte substation adjacent to the town of Sang├╝esa.

Which is a significant plus for Muga to have power available from a local substation and demonstrates the infrastructure available for Highfield as it ramps up mining approvals and then onto construction phase.

The 40 MVA of capacity will be used for the initial operations at Muga with 20MVA of reserve capacity designed to provide expansion options in the future for the potash mine.

Highfield's managing director, Anthony Hall said:

"This is an important milestone in the development of our flagship Muga Potash Mine.

"We look forward to working with Iberdrola - an important addition to the in-country partnerships we continue to benefit from as momentum builds ahead of our target to commence construction this calendar year.

"Being able to reserve 60 MVA of substation capacity supports our initial mine plans and our longer-term potential to expand the Muga Mine.

"This capability demonstrates the advantages of operating in a first-world country where direct connection to a modernised electricity grid is possible."

Analysis

Gaining ready access to grid electricity supply is vital for a mining project and the reserved supply for the Muga potash mine is another important piece in the puzzle.

The allocation of 60 MVA of electrical supply is a substantial amount of power and having it available at a local substation provides a supply surety for the project.

It continues to demonstrate the in country momentum Highfield is building to mining approvals and commencing construction.

The Definitive Feasibility Study is also likely to be completed in Q1 2015.

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