China’s Minmetals pulls plug on investment in Highfield
Australia-listed Highfield Resources faced a significant setback on Monday after China Minmetals and its subsidiary Qinghai Salt Lake Industry (QSL) formally declined to proceed with a proposed strategic equity transaction first outlined in mid-2025.
The decision ends hopes for a $300-million injection that would have accelerated Highfield’s growth ambitions.
Under a series of nonbinding letters of intent announced in May, QSL had been evaluating a cornerstone equity investment aimed at fast-tracking the construction of the Muga project and diversifying operations in Canada via the Southey potash project.
The announcement sent Highfield’s stock crashing 44% to A$0.14 a share.
Highfield confirmed that convertible notes previously issued to Potash (Muga) Investment, EMR Capital GP III (on behalf of its resources fund), and other parties had matured. EMR continues to reserve its rights and remains in constructive dialogue with the company on potential future paths.
Highfield pointed out that the existing implementation agreement was still active, though terminable by either party.
The Muga project, in northern Spain, spans about 46 km2 within a broader 550 km2 of potash exploration permits. The project will require an estimated investment of about €700-million, and has strong regional government support.
Beyond Muga, Highfield had pursued a $220-million equity raise in late 2024, involving investors like Yankuang Energy, Beijing Energy International, and others to fund potash operations and acquire the Southey project in Saskatchewan, Canada.
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