Minbos looks to branch into P4

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
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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.