Australia-based mineral exploration company Highfield Resources has signed a binding take-or-pay offtake agreement with global salt and chemical provider Maxisalt for a minimum of 50,000 tonnes per annum with the option to sell up to 75,000 tonners per annum of vacuum salt.

This represents around 20 to 30 per cent of Muga’s full phase 1 vacuum salt production.

The key terms of the contract include that the offtake duration will be for five years from the start of production, delivery of the product is to be at the Port of Bilbao or at the Port of Pasajes, and the price will be agreed upon by both parties — based on the Spanish vacuum salt market standard.

Maxisalt specialises in salt uses in leather, tannery, parmaceutical, chemical, paint and detergent industries — among others — and focuses on de-icing, water softening, swimming pools and industrial salt products.

Highfield Resources CEO and MD Ignacio Salazar said: “Muga is located centrally to an area with strong local potash and salt demand, representing a compelling competitive advantage. We are very pleased to sign this first salt offtake agreement for Muga with Maxisalt, a global trader with a strong market presence and track record.”

Highfield Resources is a Spanish potash developer.

The company’s flagship project is the Muga Project which covers an area of some 80 square kilometres in the provinces of Navarra and Aragón.