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Highlights
- Contract Signed: Minbos Resources finalizes a $6.7 million civil construction contract for the Cabinda Phosphate Fertiliser Plant.
- Immediate Mobilization: Siteworks to begin this month, targeting a May 2025 completion date.
- Strategic Export Potential: Plans for export markets supported by prior agreements, including an MOU with South African firm Foskor.
Shares of Minbos Resources Limited (ASX:MNB) climbed 9.72% to 7.9 cents on December 5, 2024, following the company’s announcement that it has signed a civil construction contract for its flagship Cabinda Phosphate Fertiliser Plant in Angola.
Details of the Contract
The $6.7 million construction deal is based on the internationally recognized FIDIC standards, ensuring high-quality execution and compliance. With no conditions precedent, mobilization for construction can commence immediately. The project is scheduled for completion on May 12, 2025.
Initial site reconnaissance and preparation are already underway at the Subantando site in Cabinda. Construction efforts will focus on creating site access, platform regularization, soil stripping, drainage, roadways, and laying concrete foundations.
The fertiliser plant, valued at $8 million, was designed by FEECO International, a leader in fertiliser engineering. Pre-fabricated during COVID-19 to mitigate rising capital costs, the plant components were shipped to Angola in early 2023 and are now ready for installation.
Strategic Importance of the Project
The Cabinda Phosphate Fertiliser Plant is designed to address the phosphate deficiency in Angola’s soils, a significant limitation for agricultural productivity. Phosphate, an essential nutrient for crop growth, has played a transformative role in agricultural development in regions like Brazil’s Cerrado, South Africa, and Western Australia.
Minbos aims to replicate this success in Angola by boosting local agricultural yields and supporting food security. Beyond the domestic market, the company is laying the groundwork for export opportunities, as evidenced by its non-binding memorandum of understanding (MOU) with Foskor, a South African-based fertiliser company.
Market Reaction and Strategic Outlook
The announcement has fueled investor enthusiasm, driving a nearly 10% surge in MNB’s share price.
