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.
Comments
Projects
Latest Multimedia
Latest News
Showroom
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
