Minbos (ASX:MNB)
Fertiliser specialist Minbos Resources (ASX:MNB) is looking to secure a US$14 million loan from the Industrial Development Corporation of South Africa to help build the Cabinda Project in Angola — a ‘big vote of confidence’ in the Angolan market, according to Minbos CEO Lindsay Reed. Yet, it’s only a small step in some much larger plans for Angola’s agriculture sector, which Reed believes will one day surpass the country’s oil industry.
Minbos Resources (ASX:MNB) has received an indicative term sheet for a US$14 million (debt) loan facility to potentially help fund its Cabinda Fertilizer Project in Angola.
The term sheet comes from the Industrial Development Corporation of South Africa (IDC) and, according to Minbos, proposes a ‘competitive’ interest rate and tenor.
Minbos, which has a $76.74 million market capitalisation, says its engagement with the IDC may also provide opportunities for potential phosphate rock offtake arrangements with South African customers.
The company has also engaged with several ‘complementary’ financing options for its Cabinda project, including coordination with existing stakeholders.
As Minbos seeks funding for its project, the company reports it has found ways to reduce capital and operating costs and accelerate the development of Cabinda.
Through a simplified flowsheet, Minbos says it has identified capital savings of around US$10 million compared to a Definitive Feasibility Study (DFS) released in October 2022, with only around US$26 million still required to fund the commencement of production.
The capital expenditure (CAPEX) for a stage two expansion to double capacity on the revised flowsheet has been estimated at between US$1.7 million and US$3.3 million, and memorandums of understanding (MoUs) covering the majority of stage one production are expected to bolster early cashflow and project net present value (NPV).
The company believes it can build its phosphate fertilizer project at a ‘significant’ discount to the budgeted CAPEX announced in the October 2022 DFS.
Commenting on the project financing work, Minbos Resources Chief Executive Officer (CEO) Lindsay Reed says: “The submission of a term sheet for project finance from an established financial institution affirms Angola’s standing for foreign investment and demonstrates support with SADC for projects with a strong social impact.”
“The submission of a term sheet for project finance from an established financial institution affirms Angola’s standing for foreign investment and demonstrates support with SADC for projects with a strong social impact”
Minbos Resources is working to build a nutrient supply and distribution business that stimulates agricultural production and promotes food security in Angola and the broader Congo basin.
With a ‘diverse’ and ‘fertile’ ecology, Angola currently holds the potential to become an agricultural producer through its arable land, which is well-suited to host a variety of crops and livestock, including cassava, bananas, potatoes, corn, sweet potatoes, citrus, pineapples, and cattle.
Minbos Resources had $12.139 million cash and cash equivalents with no debt as of 30 June 2023, according to its latest quarterly report.
The IDC represents a South African development finance institution established in 1940 to promote economic growth and industrial development to grow South Africa’s industrial capabilities.
Write to Adam Drought at Mining.com.au
Images: Minbos Resources
Minbos Resources (ASX:MNB) has launched wet and dry season environmental studies for its Capanda Green Ammonia Project in Angola ahead of a planned Prefeasibility Study (PFS).
The $83.07 million market capitalisation says the surveys are being completed by specialist consultancy HCV Africa, which provides international-standard environmental and social services, biodiversity assessments, environmental impact assessments, and environmental auditing.
Information produced from the survey is expected to feed into the project’s environmental and social impact assessment (ESIA), with work to be completed to an International Finance Coalition (IFC) standard, and an environmental impact assessment (EIA) to Angolan regulatory requirements.
Minbos reports the study will be driven by 100% renewable power from the Capanda hydroelectric complex and supported by a competitive power concession.
Tender work for key engineering providers is now underway in preparation for the upcoming PFS, which has been designed to further investigate the use of electrolysers to generate green hydrogen, as well as about 112,000 tonnes per annum of green ammonia.
This ammonia will be utilised to produce about 255,000 tonnes per annum of finished product, including fertiliser and mining explosives.
The appointment of an engineering company to carry out engineering studies on plant and infrastructure, as well as undertake market studies in Q4 2023, is anticipated to come next, according to Minbos.
Wet season baseline surveys are expected to follow in Q1 2024 ahead of the completion of the ESIA, which is scheduled for H2 2024.
Minbos Resources is an ASX-listed company working to build a nutrient supply and distribution business that stimulates agricultural production and promotes food security in Angola and the broader Congo basin.
The company says its Capanda project in Angola is one of the only cost-competitive zero-carbon green ammonia projects being developed globally.
With a ‘diverse’ and ‘fertile’ ecology, Angola currently holds the potential to become an agricultural producer through its arable land which is well suited to host a variety of crops and livestock including cassava, bananas, potatoes, corn, sweet potatoes, citrus, pineapples, and cattle.
Minbos Resources had $12.14 million cash at hand with no debt as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Minbos Resources
Minbos Resources (ASX:MNB) has achieved the objectives outlined in its Resettlement Action Plan (RAP) as part of its ESG policy in developing the Cácata Mine.
Eligibility for the RAP was defined as entitlement to compensation and assistance granted to persons, groups of persons, or families that will experience economic displacement resulting from land acquisition by the Cácata Mine.
Minbos reports the cash component valuation process has utilised prevailing market rates for the compensation of crops and trees, as well as the alternative agricultural land rental and land preparation costs.
The Tando Zinze commune is 45km north-east from the provincial capital of Cabinda and is under the jurisdiction of the Cabinda municipality. The village of Cácata is made up of 14 smaller sobados (sub-villages or neighbourhoods), which together form the larger village of Cácata. Tando-Zinze has a territorial area of 720km-square.
The boundary in the North is the Chiloango River and the Commune of Dinge. The Municipality of Cacongo is to the West and the Commune of Malembo is to the South bordering the Lulondo River with the Commune of Cabinda. The eastern border is the Democratic Republic of Congo (DRC).
The municipality has 4 Regedorias (Cácata, Bumelambuto, Tchinsua and Zenze-Lucula), 9 Sobados, and 45 villages with a population of 23,719 residents.
Commenting on the RAP program, Minbos CEO Lindsay Reed says: “The company strongly believes that this agricultural assistance program will result in a significant increase in the annual yield rate for farmers, which will consequently improve their livelihood from a higher income stream.
In line with the vision of the Central and Provincial Executive, Minbos is employing its best efforts to ensure that rural agricultural activities continue to be supported by Minbos through the RAP Program and its assistance package.”
Reed is attending the 21st edition Africa Down Under mining conference held in Perth this week (6-8 September). ADU is the largest African-focused mining event held outside the continent itself and is a forum for Australian-African business and government relations.
He will be engaging with stakeholders, investors, and dignitaries to discuss a range of issues including the RAP program.
Last week, Reed exclusively told Mining.com.au how the company has been planting the seeds to grow Angola’s agricultural sector by advancing its phosphate and ammonia projects in-country.
At the time he noted: “Ultimately, we’re a nutrient company. So, to the extent that our Capanda green ammonia plant might make ammonium nitrate for mining, or to the extent that the (Cácata) phosphate plant might feed into a yellow phosphorus business, these are complementary businesses.
“Ultimately, we’re a nutrient company“
There will be strategic partnerships that improve our business model, to give project depth that enables Minbos to achieve scale and enhance our IRR. At an early stage, we will look to introduce complementary parties to both of these projects.”
Minbos reports with a strong focus on compliance with Angolan law, international standards, and a fair and reasonable approach, it has developed a compensation plan based on a rate per crop and per hectare.
The company will also provide alternative agricultural land, replacing those affected by the proximity to the Cácata Mine, with the support of the provincial government, IGCA, and in strict collaboration with Traditional Authorities and Municipal and Communal Administrations.
Collectively the agricultural support package includes, among other aspects, cleaning and preparation of alternative agricultural land; demarcation of each lot allocated to each family; basic agricultural hand tools for each family; supply and transport of adequate fertiliser; and development of access roads to alternative agricultural land.
As the company told this news service last week, at the forefront of its vision, Minbos is seeking to provide more high-value products from its Cácata phosphate deposit within the Cabinda Project.
The strategy was developed on the back of a $25 million placement completed in July 2022, when a strategic cooperation agreement with a syndicate of investors was signed.
The 2021 Cácata JORC (2012) mineral resource contains a total measured, indicated, and inferred mineral resource of 8.4 million tonnes at 29.6% P205 of which 4.72Mt @ 30.1% P2O5 has been converted into proven and probable ore reserve.
In July 2023, a binding memorandum of understanding (MoU) was signed with privately held Grupo Carrinho – Angola’s largest agro-industrial group – to supply Cabinda Phosphate Rock for use as fertiliser through the Port of Lobito, beginning in the 2023/2024 growing season.
Reed says the MoU includes a fertiliser supply agreement for up to 869,000 tonnes of Cabinda Phosphate Rock over the first 7 years of production (to 2030), representing 66% of stage one production.
Write to Adam Orlando at Mining.com.au
Images: Minbos Resources
Minbos Resources (ASX:MNB) has begun a concept study to produce yellow phosphorus (P4) and establish a joint venture (JV) as part of its emerging new energy materials business.
The $87 million market capitalisation company says P4 represents an essential critical mineral for the battery materials supply chain, as it is required to produce lithium hexaflourophosphate (LiPF6), as well as within the agricultural sector.
To achieve this feat, Minbos will utilise a $15 million investment previously received from a syndicate of new energy materials investor controlled by Chairman of Shanghai Putailai New Energy Technology (SHA:603659) Chairman Liang Feng, and Chairman of CATL Zeng Yuqun.
As part of this investment the syndicate signed a strategic cooperation agreement with Minbos to develop phosphate-based new energy materials in Angola, including ferro phosphate and lithium ferro phosphate projects, as well as identify, approach and secure appropriate partners and providers.
Other terms highlighted in the agreement include the contribution to project feasibility, and a long-term offtake of 100,000 tonnes per annum of ‘high-grade’ phosphate rock at agreed market rates.
What’s more, Angola’s competitive commercial electricity tariff, economic free zones, and proximity to European markets has ensured Minbos has been approached by numerous potential project partners in the anode, cathode, and industrial chemical industries about producing P4 in Angola.
As part of this project development, a tier one global engineering, construction, and project management company, which has been employed by Minbos, will undertake a concept level engineering study for a greenfield P4 production facility in Angola, targeting 20,000 tonnes per annum.
This study is expected to take 10 weeks, with outputs anticipated to form part of a JV with interested commercial parties.
Minbos reports it is making this move at a time in which Europe is consuming about 130,000 tonnes per annum of P4, however there is no P4 production in Europe.
Mining.com.au first revealed last week that following strong expressions of interest from global investors Minbos is investigating the feasibility of pursuing the production of yellow phosphorus from both its existing phosphate resource at the Cácata mine in Angola and new licences under application.
Minbos had $12.14 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Minbos Resources
This article is a sponsored feature from Mining.com.au partner Minbos Resources Ltd. It is not financial advice. Talk to a registered financial expert before making investment decisions.
It’s not often that a junior resources company has a vision to cultivate and expand an entire untapped industry in an overseas market.
For years Minbos Resources (ASX:MNB) has been planting the seeds to grow Angola’s agricultural sector by advancing its phosphate and ammonia projects in-country.
Essentially, the $87 million market capitalisation company is building an African nutrient company with sustainable byproduct businesses.
Its vision is to blossom into a primary producer, supply and distribution business that stimulates agricultural production and promotes food security in the Republic and the broader middle African region.
Speaking to Mining.com.au, CEO Lindsay Reed explains that while Minbos has ‘the most compelling’ green ammonia project globally and a ‘high-grade’ phosphate rock fertiliser mine, the company is hungry to achieve much much more.
“This is not a phosphate story – this is a change a whole country story.”
“This is not a phosphate story – this is a change a whole country story”
A mining engineer with 40 years’ experience in exploration, development, operations, and corporate finance, Reed has worked in mineral sands, copper, and tin operations in countries such as Botswana, Kenya, Malawi, Niger, South Africa, and Zambia.
“Ultimately, we’re a nutrient company. So, to the extent that our Capanda green ammonia plant might make ammonium nitrate for mining, or to the extent that the (Cácata) phosphate plant might feed into a yellow phosphorus business, these are complementary businesses.
There will be strategic partnerships that improve our business model, to give project depth that enables Minbos to achieve scale and enhance our IRR. At an early stage, we will look to introduce complementary parties to both of these projects.”
This green ammonia vision began to germinate on 1 August this year, when Minbos inked a 60-year commercial lease for the site of its Capanda Green Ammonia Project, located in Angola’s Malanje Province. The lease was signed at the concessional rate of US$300 per annum.
Based on a Technical Study for the project, future plans are to produce 112,000 tonnes per annum of green ammonia and to produce 255,000 tonnes per annum of high-density Ammonium Nitrate (HDAN) which can be used for both fertiliser and mining explosives as an emulsion product.
The green ammonia site is located in the 411,000 hectare Capanda Agro Industrial Pole, which is serviced by established highways and the Malanje railway line. The Pole will be a ready-made market for nitrogen and already hosts several large farms including the 30,000 hectare Biocom sugar plantation.
The ammonia project is located within the Capanda Agro-Industrial Hub and is just 5km from the Capanda Hydroelectric Dam on the Kwanza River, which generates power from 4 turbines of 130 megawatts each.
Reed says securing the site location for the Capanda Project is a significant milestone, allowing it to start baseline environmental and geotechnical surveys for upcoming feasibility studies.
Ammonia is the second-most-widely produced commodity chemical globally. Some 180 million metric tons of ammonia is produced annually with 120 ports equipped with terminals. Key uses include fertilisers, explosives, and industrial chemicals.
At the forefront of its vision, Minbos is seeking to provide more high-value products from its Cácata phosphate deposit within the Cabinda Project.
The strategy was developed on the back of a $25 million placement completed in July 2022, when a strategic cooperation agreement with a syndicate of investors was signed.
The 2021 Cácata JORC (2012) mineral resource contains a total measured, indicated, and inferred mineral resource of 8.4 million tonnes at 29.6% P205 of which 4.72Mt @ 30.1% P2O5 has been converted into proven and probable ore reserve.
In July 2023, a binding memorandum of understanding (MoU) was signed with privately held Grupo Carrinho – Angola’s largest agro-industrial group – to supply Cabinda Phosphate Rock for use as fertiliser through the Port of Lobito, beginning in the 2023/2024 growing season.
Reed says the MoU includes a fertiliser supply agreement for up to 869,000 tonnes of Cabinda Phosphate Rock over the first 7 years of production (to 2030), representing 66% of stage one production.
Carrinho has a 1Mtpa grain and oil processing facility in Benguela, fed by a network of silos in the Huambo and Huila Provinces. It is backed by a sovereign guarantee to support the development of the Benguela Facility and provides smallholder farmers with fertiliser and training, enabling them to supply grain and oilseed to the facility.
Reed notes the MoU is subject to successful Carrinho-Instituto de Investigação Agronómica (IIA)- Minbos field trials to affirm the suitability of the Cabinda Phosphate Rock as a fertiliser. He says Minbos has already demonstrated the suitability and efficacy of Cabinda phosphate rock as a fertiliser in the field trials.
The company is in Angola for the long haul and as part of that vision, Minbos will be transparent and educational.
“You can’t just go to the farmers (in Angola) and say ‘grow more’ because they’re already growing enough to eat. There’s no point growing more if they can’t profit out of it. And to do that they need training and knowledge. They’ll need good quality seeds and they’ll need fertiliser and weed control strategies things like that.
Then it comes back into their market. This is where this Carrinho plays such an important role as the market for farm surplus, but also providing fertiliser and seeds and training to the farmers.
“This is where this Carrinho plays such an important role as the market for farm surplus, but also providing fertiliser and seeds and training to the farmers“
We’re trying to get the IFDC (International Fertilizer Development Center) to come in and assist with that. And we’re also talking with government organisations who are already doing that with 2000, 3000 people on the ground, and then we provide the inputs.
But we’ve effectively done a deal to sell to Carrinho. They’ll lend it to the farmers, the farmers will grow the product, it’ll come back and go into this factory. Then they will pay the farmers for the product, deducting off the fertiliser and things like that.”
Meanwhile, following strong expressions of interest from global investors Minbos is investigating the feasibility of pursuing the production of yellow phosphorus (also known as P4) from both its existing phosphate resource at the Cácata mine in Angola and new licences under application.
P4 is required to produce specialist phosphorus chemicals needed by a very wide range of high-value end-uses, including electronics, fire safety, industrial water and process treatment, technical plastics, pharmaceuticals, lubricants, and metal treatments, but is increasingly in demand for the production of LiFeP batteries.
The CEO tells Mining.com.au that while these assets and verticals are attractive investment propositions in and of themselves, the inherent value is driven by the part of the world in which they are situated.
He says Angola is the ideal country for an ASX-listed junior company like Minbos to sow the seeds of opportunity. It is the second-largest Lusophone (Portuguese-speaking) country in both total area and population (behind Brazil) and is the seventh-largest country in Africa with a population of 31 million.
Agriculture accounts for about 9.5% of Angola’s GDP while providing employment to just under half (46%) of the country’s population. Yet despite having 57 million hectares of arable land (suitable for growing crops) and 5 million hectares of cultivated land, 95% of this landmass is comprised of smallholder farming.
With high rainfall, Angola remains one of the world’s great untapped agricultural regions. Perplexingly, the country has some of the lowest rates of fertiliser use globally and 100% of nitrogen, phosphate, and potassium (NPK) is imported.
The CEO says: “It was once ravaged by civil war but Angola is rich in natural resources including metals, precious gems, and petroleum and ranks among the highest of the oil-producing countries in sub-Saharan Africa.
In 1970 Angola was actually a leading farming nation and has been a global producer of coffee and an exporter of sugarcane, bananas, cotton. But when the Portuguese rushed out the door (and Angola gained independence in 1974) it was all left behind.”
“It was once ravaged by civil war but Angola is rich in natural resources including metals, precious gems, and petroleum and ranks among the highest of the oil-producing countries in sub-Saharan Africa“
The Portuguese Colonial War (also known as the Angolan, Guinea-Bissau and Mozambican War of Independence) was a 13-year-long conflict fought between Portugal’s military and the emerging nationalist movements in Portugal’s African colonies between 1961 and 1974. The Portuguese regime at the time was overthrown by a military coup in 1974 and the change in power brought an end to the conflict.
Devastating civil war followed in Angola, which lasted from 1975 until 2002. However, in recent times República de Angola has been making moves to accelerate economic diversification, entice private investment and local development, and has sought to create a more favourable business environment to transform the country.
Despite these trials and tribulations Angola is rich in natural resources and hosts spectacular mineral deposits of all shapes and sizes. The presence of mining majors such as Anglo American (LON:AAL), De Beers (NYSE:DE), and Rio Tinto (ASX:RIO) illustrates how Angola is emerging as a leading mining region in Africa.
Importantly for Minbos, the country offers vast tracts of unoccupied arable land that has little to no local manufacturing but an insatiable appetite for fertilisers. And the country is seeking to expand its agricultural sector, which will require fertilisers, including nitrogen fertilisers.
Boasting a diverse and fertile ecology, Angola holds the potential to become one of the leading agricultural producers on the continent. Reed says the country has analogous soil and climate to the cerrado in Brazil, which has increased its land under planting by 25 million hectares in the past 30 years.
Demand for nitrogenous fertilisers in Angola will depend on the land area under cultivation and the crop selection.
Given the available land and the analogy to Brazil, Angola is targeting at least 2 million hectares under commercial cultivation.
Historical crops require significantly different nitrogen fertilisation rates – for example up to 200kg/Ha for maize and up to 300kg/Ha for cotton. At an average consumption of 100kg/Ha Angola is expected to require about 200,000tpa of nitrogen equivalent to 600,000tpa of ammonium nitrate.
Reed adds: “The Capanda Green Ammonia project would be able to meet half of this demand.”
When Minbos started pitching its vision to the government, it became clear that the real value proposition would be cultivated by making its phosphate products in Angola for Angola.
“What’s the point of exporting it, making 20 cents in the export coffers when we could be changing the lives of millions of farmers? That’s what they (the government) wanted us to do when we took it on and that’s why we’ve got pretty good traction over there, because of what we’re going to do.
Similarly with the green ammonia – we took the same story with the green ammonia and said, ‘look, we might export half of it to try and get to scale, drive partnerships, strategic partnerships to bring us to scale’. We’re talking about something similar with phosphate as well, but it’s primarily made in Angola for Angola, and that’s what’s getting us our traction.”
Angola’s vulnerability to climate change has exacerbated the need to adapt its agricultural sector to support resilience and adopt new approaches. The government has launched the Angola Commercial Agriculture Project, which is co-financed through the World Bank, as well as public financial institution the French Development Agency, to mobilise more than US$230 million to increase agricultural productivity and market access for more commercial farms in the country.
The World Bank in 2022 also approved the US$300 million Smallholder Agricultural Transformation Project, which is designed to expand Angola’s efforts to transition towards climate-resilient farming.
Reed says the country is basically divided into 3 regions that he has termed grow to eat, grow to sell, and grow to export.
“There are about 5 million hectares hosting 3 million families, and there’s probably around 9 million people in the area where we are focused.
You’ll find sophisticated farms that have pivot irrigation and these guys are setting up to supply basically Luanda, the main big city, and the supermarkets there. But these farms make up less than 10% of cultivated land… for now.
There’s still a lot of vacant land north of the Kwanza river – it’s just not touched. There are millions of hectares that could service the export market out through the port near the end of the Malange railway line.”
The CEO says Angola’s 57 million hectares of land that can be farmed is well-suited to a variety of crops yet despite this potential it cultivates a mere 10% of this land. With similar latitude, rainfall, and soils to Brazil, Angola has scope to grow its agricultural economy to a similar size, he says.
Ultimately, it’s not very often you come across any company, let alone a resources company, whose ultimate goal is to change the dynamic structure of a country and its economy by seeking to grow a whole local industry.
However, Minbos has a strong foundation to achieve this vision.
In the coming weeks, the company will be launching its product bagging branding for its fertiliser, which will reference how prosperous the venture is for Minbos, as well as its second brand for the company’s soil technology and laboratory.
Minbos is now well advanced in its offtake discussions regarding the Cabinda Phosphate Project with most of the stage one production expected to be covered within current negotiations. Significant progress has also been made on non-dilutionary funding (debt and/or prepayment) for a significant proportion of the outstanding capex for the project, with negotiations expected to be finalised in September.
The company has started the construction process and will soon sign contracts for the civil and concrete works. In June 2023, Minbos signed a $4.25 million Engineering, Procurement and Construction Management (EPCM) contract with EPC Engenharia and its Angolan subsidiary EPX Angola for the construction of the Cabinda Phosphate Fertiliser Plant.
“Our fertiliser product will be there for the long haul and it works for the majority of their farmers now“
Later in the year, contracts will be signed for the mechanical, structural, electrical, and instrumentation work, and it will undertake a desktop study to better understand the yellow phosphorus.
Minbos will also soon announce that it has started environmental surveys as the first step of the Prefeasibility Study (PFS) for the green ammonia. It will also launch its product in September having already signed agreements with all landholders on the mine.
Reed adds: “Our fertiliser product will be there for the long haul and it works for the majority of their farmers now. In 10 years’ time they’ll all have matured, just like Australia 50 years ago. Australia just used superphosphate. Now we’re using more sophisticated fertilisers and the farming is more sophisticated. Same thing will happen here (in Angola) but for now, just a simple phosphate product is what they need to get it going.”
Minbos is on the cusp of flourishing given it has exposure to 3 global megatrends leveraging Angola’s unique global position.
The first is nutrients with its Cabinda Phosphate Project, which has an NPV US$203 million, an IRR of 39%, and will cost just US$23 million to complete construction. Second is green nitrogen where its Capanda Green Ammonia Project has access to cheap renewable power and a PFS is due to start. Thirdly, Minbos has exposure to high purity phosphorus where the company is seeking a partnership.
The CEO adds: “The Cabinda Phosphate Project however is the first step in developing a high impact self-sustaining agricultural sector throughout Angola and middle Africa and the first step in alleviating poverty for millions of subsistence farmers who use no soil nutrients.”
Write to Adam Orlando at Mining.com.au
Images: Minbos Resources
Minbos Resources (ASX:MNB) has signed a 60-year commercial lease at US$300 per annum for the site of its planned Capanda Green Ammonia Project in Angola.
The $90.99 million market capitalisation company says its future plans are to produce about 112,000 tonnes per annum of green ammonia to in turn produce 255,000 tonnes per annum of high-density ammonium nitrate (HDAN).
HDAN can be used for fertiliser and mining explosives as an emulsion product.
The green ammonia site is located within the Capanda Agro Industrial Pole, which covers an area of about 411,000 hectares. The company says the industrial pole is set to be a ready-made market for nitrogen, as it is a host to multiple ‘large’ farms, including the 30,000-hectare Biocom sugar plantation.
Moreover, Minbos says Angola has about 36 million hectares of arable land but currently only farms 5.5 million hectares, which is largely held by small holder farmers that use little or no fertiliser.
Minbos notes that the demand for nitrogenous fertiliser in Angola depends on the land area under cultivation and the crop selection.
Nevertheless, at an estimated average fertiliser consumption of 100kg per hectare, Minbos predicts Angola will require around 200,000 tonnes per annum of nitrogen equivalent to 600,000 tonnes per annum of ammonium nitrate to support a targeted 2 million hectares of land under commercial cultivation.
The Capanda Green Ammonia project would be able to meet half of this demand.
Minbos Resources is an Australia-based exploration and development company engaged in the nutrient supply and distribution business. As of 30 June 2023, the company had $12.139 million cash and cash equivalents at hand, according to its latest quarterly report released yesterday (31 July).
Write to Aaliyah Rogan at Mining.com.au
Images: Minbos Resources Ltd
ASX-listed Minbos Resources (ASX:MNB) has signed an engineering, procurement, and construction management (EPCM) contract for its Cabinda Phosphate Project in Cabinda, Angola.
The US$4.25 million contract is for the construction of the Cabinda Phosphate Fertiliser Plant and formalises the engagement that was initially started in 2022 with a limited notice to proceed (LNTP) agreement.
Minbos Resources shares have risen 13.64% to $0.12 as of midday AEST.
Minbos Resources shares have risen 13.64% to $0.12 as of midday AEST.
Since the LNTP agreement was signed with EPC Engenharia (Engenharia e Projectos de Infraestrutura Lda) in February 2022, the plant has been redesigned, resulting in savings of over US$10 million.
Additionally, the plant was relocated from Futila to Subantando, cutting the trucking distance from the Cacata Phosphate mine site in half.
Minbos says community work is continuing at the Cacata Phosphate mine site, with the installation of a water supply for the village now completed.
Further work is already underway, with the clearing of the project site and perimeter fencing completed last week and earthworks and civils set to begin immediately.
EPC is an experienced Brazil-based provider of EPC, EPCM, and turnkey solutions comprising engineering, conceptual, basic and detailed projects, supply management, and project management for larger companies, both nationally and internationally.
Minbos Resources is an ASX-listed phosphate fertiliser and nutrient company. The company says its Cabinda Project is the first step in developing a ‘high-impact’ self-sustaining agricultural sector throughout Angola and middle Africa.
Write to Aaliyah Rogan at Mining.com.au
Images: Minbos Resources Ltd
Minbos Resources (ASX:MNB) has achieved key construction approvals for the development of mining and processing facilities at its Cabinda Phosphate Project in Angola, southern Africa.
The company says it has received environmental approval licences for construction activities at the project and confirms that the project has met all environmental formalities and processes related to the installation and construction of the various facilities.
As of 1:17pm AEST, Minbos’ share price has increased by 21.21% to $0.12.
Minbos reports the approvals come at a time in which the company is well-advanced in its offtake discussions, with most of the stage one production expected to be covered in current negotiations.
The company notes it has also made ‘significant’ progress on non-dilutionary funding (debt and/or repayment) for a ‘significant’ proportion of the ‘outstanding’ capex for the project. Negotiations for this are scheduled to be finalised in August/September 2023.
Minbos further notes these achievements have occurred following a site visit undertaken by the board of Minbos in order to inspect the works at the Subantando and Cacata sites. The board is reported to have visited other areas important to the company, including the Port of Lobito, which is quickly gaining regional prominence as the linchpin for the Lobito Rail Corridor.
US President Joe Biden has recently supported the development of this corridor, confirming that the US has already mobilised over $30 billion in investments to date, with plans for further investment in the future.
Meanwhile, Minbos announces it has also appointed Steve Abbot, Rob Newbold, and Asareh Mansoori as its new Chief Operating Officer (COO), Chief Strategy & Marketing Officer, and General Manager, Operations, respectively.
The company states Abbott is a highly regarded mining executive with over 30 years of experience in senior international and resource sector roles, while Newbold has over 20 years of experience across the industrial, chemical and agribusiness sectors operating throughout Australia, Asia, New Zealand, and Europe, having held the role of General Manager for Wengfu Australia.
Finally, Mansoori is a mining engineer with 15 years of experience in the Australian and International resource sectors. He is responsible for the development and operation of the Cabinda Phosphate mine and processing plant.
With the key construction approvals now received, Minbos Resources announces it will update the market on its progress in Angola, including critical offtake and funding discussions, in the coming weeks.
Minbos Resources is an ASX-listed company with the goal to build a nutrient supply and distribution business that stimulates agricultural production and promotes food security in Angola and the broader Congo Basin.
The company’s Cabinda Project is located in Angola and represents the first step in developing a high-impact self-sustaining agricultural sector throughout Angola and middle Africa, as well as the first step in alleviating poverty for millions of subsidence farmers who use no soil nutrients.
Write to Adam Drought at Mining.com.au
Images: Minbos Resources Ltd
Minbos Resources Limited (ASX: MNB) announced that the Ministry of Mineral Resources, Petroleum and Gas (MIREMPET) has approved the Company’s Mining Licence, renewable for up to 35 years, for the mining of phosphate at its Cabinda Phosphate Project in Angola.
The company announced that the Angolan government has granted exclusive mining rights for up to 35 years over an 85km2 area including the designated project area within the Cabinda Phosphate Project.
MNB said that this encompasses the Cácata high-grade phosphate deposit, proposed open-pit mine, waste and ore stockpiles, and all associated infrastructure required for the mining operations.
Angola awards mineral rights through the execution of both a Mineral Investment Contract (MIC) and a Mining Licence issued in accordance with the Mining Code.
MNB said that in June 2020, the Minister invited Minbos to finalise a MIC after winning the public tender for the Cabinda Phosphate Project. The MIC was executed on 27 January 2021.
The Cácata deposit is a uniquely low-impact mining project, with a relatively small environmental footprint and long operational life.
The company said that the Cabinda Phosphate Project’s planned small open pit operation at the Cácata deposit measures less than 2km in length with the mining amenities positioned around the pit and close to a local workforce. MNB said that the mine will also be located right next to the sealed dual carriage highway which is 50km from the proposed granulation plant at Port de Caio.
The company announced that its environmental consultants, Grupos Simples in Angola and HCV from South Africa will mobilise to Cabinda in early April to complete a wet season base line environmental survey in the Mining Licence area.
MNB said that a dry season base line survey will follow in the September quarter allowing the preparation and submission of the EIA and EISA for regulatory approvals and project financing.
Minbos reported that the DFS is progressing on schedule and the DRA is scheduled to complete the Engineering component in July. The company said that the IFDC is also currently assembling its team to formulate its market development program in Angola.
Minbos CEO Lindsay Reed said: “To receive our Mining Licence less than two months after executing a Mining Investment Contract, usually a 3-5 year process, is a timely confirmation by the Government of Angola of their commitment to support and accelerate our Project.
The Company is now positioned to develop Angola’s first locally mined and manufactured fertilizer for sale into one of the most prospective growing regions globally.”
*Image Source: Minbos Resources Limited
