Minbos cultivating Capanda investor interest

Minbos Resources (ASX:MNB) is continuing to garner ‘significant’ partner interest for its Capanda Green Ammonia Project (CGAP) in Angola, Africa. 

The $66.46 million market capitalisation company is attracting global interest from prospective companies wanting to participate in the CGAP, including financing, manufacturing, technology, and offtake. 

Today (13 February 2024), the company announces it has completed environmental baseline surveys for CGAP, which it says is a ‘major’, time-critical milestone.  

Completion of the baseline surveys follows completion of a technical study in early April 2023 which noted unique advantages of the CGAP include zero-carbon hydropower, which is already operational and available.

The presence of the existing Capanda Dam and hydroelectric facilities mean that green electricity is available without the need for power generation capex and minimises the capital and operating costs compared to using saline groundwater.  

Managing Director Lindsay Reed says tenders for engineering design, and studies for preferred technologies and engineering providers are being assessed to optimise the route to production of green ammonia for agricultural fertilisers and mining explosives.

Reed adds the project will become an ‘important’ supplier of nitrogen in the Grow to Sell sector, and attends to the most immediate need in the Grow to Eat sector to alleviate poverty in smallholder farmers.  

“Our long run plan is to support the Grow to Export sector in Angola to make agriculture the biggest contributor to the Angolan economy. Minbos is looking to structure the Capanda project partnerships to best achieve these immediate and long-term plans. 

By focusing on smallholder farmers, we ended up with an organic phosphate project and focusing on food security with commercial farmers we have ended up with a zero carbon green ammonia project. Looking forward to where the export focus will take us.”

Further, rapid progress of the Lobito Corridor has aided in attracting the attention of mining and explosives companies in the western copper belt of Angola, which is up to 1,000km closer than existing sources of explosives supply. 

As such, Minbos plans to pursue a Prefeasibility Study (PFS) to further investigate the use of electrolysers to generate green ammonia designed to produce 250,000 tonnes per annum of high density ammonia nitrate, with an option to expand if further power can be secured. 

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. 

As of 30 December 2023, Minbos had $4.606 million cash and cash equivalents at hand, according to its latest quarterly report.

Write to Adam Drought at Mining.com.au

Images: Minbos Resources
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.