Highfield Resources (ASX: HFR) has announced the signing of a non-binding offtake MOU between Keytrade AG as part of the company’s sales and marketing strategy for the full production of one million tonnes per annum from its Muga Potash Mine in Spain.
The agreement was reached with Highfield’s wholly owned Spanish subsidiary Geoalcali S.L.U.
Highfield Chairman, Richard Crookes, said that under the MOU Highfield can provide Keytrade up to 300,000 metric tonnes per annum of muriate of potash (MOP). For MOP destined for the export market and where commercially appropriate the loading ports of Pasajes or Bilbao or Bayonne will be used, where no shipping is required the Product will be trucked.
Keytrade is a large Swiss based agri-trader that was first established in 1997. Keytrade has substantial experience working with all types of suppliers, distributors, retailers and end-users across all fertiliser products and is active in more than 115 countries across the globe with key offices in
Mr Crookes said the future potential partnership with Keytrade will provide Highfield with enhanced insights into the MOP market which will be invaluable in the first years of production.
“The signing of another offtake MOU is a very important step in solidifying Highfield’s commercialisation strategy,” Mr Crookes said.
“In addition, it is further recognition by the market of the importance of the Muga Mine in the global and local MOP supply space.
“Keytrade brings many years of experience and a large global network that will be extremely valuable to Highfield.”
However, Mr Crookes added, Highfield continues to engage in ongoing offtake discussions with other wholesale customers, distributors and global traders for the full production capacity from the Muga Mine.
Highfield’s Muga-Vipasca, Pintanos and Sierra del Perdón potash tenement areas are located in the Ebro potash producing basin in Northern Spain, covering an area of around 277km2.
Following the granting of a positive environmental permit Highfield is now focusing on securing the Mining Concession and the construction permits necessary to take the Muga Project into the construction phase.