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
