Minbos Advances Angola Fertilizer Project with A$800K Stage 2 Orders

Strategic Progress in Angola Fertilizer Project

Minbos Resources Limited (ASX – MNB) has taken a decisive step forward in the development of its Subantando Fertilizer Plant in Cabinda, Angola, by approving the purchase of long lead items valued at over A$800,000. This move signals confidence in the project's momentum and the alignment of its financing partners, marking a critical juncture in the staged construction approach.

The long lead items include essential infrastructure components such as a diesel storage and pumping system, power line connection, and a compressed air system. These are foundational to Stage 2 construction and reflect the company’s commitment to maintaining project timelines despite the complexities of large-scale industrial builds in emerging markets.

Financing and Partnership Dynamics

Stage 1 construction activities are currently underway, supported by a significant equity investment from the Angolan Sovereign Wealth Fund. This partnership underscores the strategic importance of the project to Angola’s national interests, particularly in enhancing food security and economic growth as outlined in the country’s National Development Plan 2023-2027.

Complementing the equity funding, Minbos is making encouraging progress securing debt financing from the Industrial Development Corporation of South Africa and Bank Bai. The Board’s approval of Stage 2 long lead orders reflects growing confidence in the financial structure underpinning the project, which aims to be the first all-African construction financing for a fertilizer plant in Angola.

Construction Milestones and Future Outlook

Significant groundwork has been completed, including audits of plant equipment, excavation and foundation works, and ongoing earthworks at the site. The fertilizer plant and machinery are already on site, positioning Minbos well to maintain construction momentum.

Managing Director Lindsay Reed highlighted the broader significance of the project, noting its alignment with government policies and its potential to position Minbos as a key player in one of the fastest-growing regions globally. The project’s success could catalyse further agricultural development in Angola, a country prioritizing food security as a pillar of economic growth.

While the announcement does not specify timelines for Stage 2 completion, the approval of these critical orders suggests a clear pathway forward. Investors and stakeholders will be watching closely as Minbos navigates the next phases of construction and financing.