Minbos Resources receives funds, expects to now finalize Australia project construction contract

HOUSTON (ICIS)–Australian fertilizer firm Minbos Resources, who is advancing the Cabinda Phosphate project in Angola, announced it has received the first funding from the Angolan Sovereign Wealth Fund for $6.4 million and expects to finalize the construction contract this month.

The company said mobilization to the phosphate fertilizer plant, located at Subantando, a new industrial area between the mine site and Cabinda city, is also planned to commence this month with phase 1 to include earthworks, access roads, drainage and concrete foundations.

Another $2.43 million will be released upon mobilization of the civil contractor and upon aligning the governance arrangements of the Angolan subsidiaries, with a third disbursement of $1.17 million upon finalizing project insurances and presentation of supplier quotations for project long lead items.

Minbos Resources managing director Lindsay Reed said the receipt of this funding and the commencement of construction marks the end of one journey for the company and the beginning of another with the focus now switching to construction activities, sales and marketing and advance their future as a producer of phosphate fertilizer.

The Cabinda project, located in northeast Angola, is being developed based on an initial name plate capacity of 150,000 tonnes/year of enhanced phosphate rock with initial production calculated at 50,000 tonnes/year.

Previously Minbos said expansion will come in two stages with it planning to add a second and third granulation circuit to reach a name plate capacity of 450,000 tonnes/year after eight years of operations.