Minbos achieves Cácata resettlement objectives

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
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.