Minbos Slashes $20M CAPEX, Targets Early Phosphate Shipments in 1H 2026
Minbos Resources unveils a streamlined strategy for its Cabinda Phosphate Project, cutting upfront costs by $20 million and aiming for accelerated shipments from Porto do Caio in the first half of 2026.
- Accelerated production plan removes crushing, drying, and dust extraction initially
- Upfront capital expenditure reduced by approximately US$20 million
- Early shipments of unprocessed phosphate rock targeted for 1H 2026
- Porto do Caio port ready to handle larger vessels up to 25,000 tonnes
- Mining Investment Contract remains with Minbos via Angolan branch, increasing ownership share
Strategic Shift to Accelerate Production
Minbos Resources Limited has announced a significant revision to its Cabinda Phosphate Project strategy, opting for an accelerated production approach that eliminates the need for initial crushing, drying, and dust extraction processes at the Subantando Factory. This pivot not only expedites the timeline for production and sales but also slashes upfront capital expenditure by around US$20 million, a substantial saving for the company.
The revised plan leverages moisture reduction technology from Moisture Reduction Systems (MRS), capable of reducing phosphate rock moisture from over 20% to approximately 6%, enabling the supply of unprocessed phosphate rock acceptable to select export and domestic customers. This approach allows Minbos to fast-track shipments without the full-scale factory commissioning, targeting first exports from the Porto do Caio port in the first half of 2026.
Financial and Operational Implications
By removing the crushing, drying, and dust extraction steps initially, Minbos reduces operating costs by about US$17 per tonne for early production volumes. The strategy also defers the need for a US$20 million capital outlay and eliminates the immediate requirement for the Banco BAI financing facility, easing financial pressures and allowing the company to commence operations with a smaller equity injection.
Minbos is exploring two logistics options for shipping – bulk logistics involving storage and campaign trucking to the port, and a rotating container system that offers flexibility without upfront storage construction. The final choice will depend on port capabilities and equipment delivery timelines.
Market and Customer Engagement
Customer engagement remains robust, with export clients in Brazil and domestic partners like FertiAfrica already trialing phosphate rock and granulated fertiliser products. FertiAfrica plans to produce granulated NPK fertiliser using Cabinda phosphate rock, supporting local agricultural markets. Meanwhile, Minbos continues to receive strong export interest, including inquiries for 600,000 tonnes per annum of high-quality crushed phosphate rock for phosphoric acid production.
Regulatory and Ownership Structure
To facilitate the accelerated start, Minbos intends to establish an Angolan branch to hold the Mining Investment Contract (MIC), allowing the contract to remain with the parent company while increasing the group’s ownership share from 66.3% to 78%. This structure provides operational flexibility and enhances profit retention. The transformation of the local subsidiary Soul Rock Lda into a public company is no longer an immediate necessity under the new plan.
Looking ahead, Minbos plans to continue full development of the Subantando Factory to meet the demands of export markets requiring crushed, low-moisture phosphate rock, supported by term sheets totaling US$28 million from key lenders.
Bottom Line?
Minbos’s streamlined approach could reshape its production timeline and financial outlook, but key logistics and financing decisions remain pivotal.
Questions in the middle?
- Which shipping logistics option will Minbos ultimately select for early exports?
- How quickly can financing arrangements for the full Subantando Factory development be secured?
- What impact will the accelerated start have on long-term customer contracts and product specifications?
