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Highfield signs purchase contract for Joy miner bolter from Komatsu

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World Fertilizer,

Highfield Resources has announced that its wholly owned Spanish subsidiary, Geoalcali S.L.U. (together with Highfield, the group) signed, on 29 September 2020, a contract for a Joy miner bolter with a subsidiary of Komatsu Mining Corp., as part of the group’s continued development of the Muga Potash Mine.

Komatsu is an industry-leading manufacturer and supplier of equipment, technologies and services for the mining and construction markets. The company’s mining brands include Joy and P&H, which are used in the extraction and haulage of minerals in underground and surface mining.

The Muga deposit will be accessed via twin parallel declines from surface, each over a length of 2.6 km to a depth of approximately 350 m below surface. The company plans to build the underground access of the mine with one miner bolter and two leased roadheaders. Having two different types of excavation equipment will provide operational flexibility and reduce decline construction risk. Furthermore, while Highfield is making a significant commitment with the purchase of the miner bolter, the additional leased machinery supports the cash preservation objective of the company. The miner bolter will be used in the future to develop the main underground infrastructure galleries.

Entering into the contract with Komatsu now will allow the miner bolter to be delivered, assembled and ready to excavate and construct decline portals following the completion of site preparation activities. A deposit payment will be made subsequent to contract signing.

Highfield Resources CEO, Ignacio Salazar, said: “The signing of this supply contract with Komatsu is a significant milestone and continues to show the progress and the commitment of the company to the development of Muga. The strategy to use both the Joy miner bolter and leased roadheaders is more robust as it provides operational and financial flexibility to the company.”

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