Minbos Resources has secured a US$13.8 million Phase 2 construction contract with Grupo Arliz, marking a pivotal step toward completing its Cabinda Phosphate Fertilizer Plant in Angola. With key equipment already on site and funding in place, the project moves closer to operational readiness.
- US$13.8 million Phase 2 contract awarded to Grupo Arliz
- Contract covers final construction works to dry commissioning
- Plant equipment delivered early to mitigate cost and schedule risks
- Funding package strengthened by IDC drawdown and Angolan bank term sheet
- Project moves closer to supplying locally produced phosphate fertilizer
Phase 2 Contract Marks Transition to Final Construction
Minbos Resources Limited (ASX:MNB) has inked a US$13.8 million contract with Grupo Arliz to complete the remaining construction works at its Cabinda Phosphate Fertilizer Plant (CPFP) in Angola. This Phase 2 award shifts the project from civil groundwork to the final build stage, encompassing structural steel, mechanical, electrical, instrumentation, and process control system installations necessary for dry commissioning.
Phase 1, also executed by Grupo Arliz, delivered the foundational infrastructure including roads, drainage, slabs, and foundations. The seamless handover to Phase 2 underscores a steady construction rhythm and contractor continuity.
Early Equipment Delivery Mitigates Inflation and Schedule Risks
Crucially, the plant and equipment designed by FEECO International have already arrived in Cabinda, ready for assembly. Minbos’ strategy to procure these assets early in 2023 aims to shield the project from capital cost inflation and potential delays, a notable risk mitigation in today’s volatile supply environment.
This proactive approach aligns with Minbos’ broader funding progress, having recently drawn down the first tranche under its US$16 million Industrial Development Corporation (IDC) loan facility. The company has also secured a term sheet with Banco de Fomento Angola, strengthening the financial foundation needed to drive the project through to completion.
De-risking Project Delivery and Local Fertilizer Supply
CEO Rob Newbold highlighted the milestone as a significant stride for Angola’s only integrated phosphate mine and fertilizer project. He emphasised that with civil works complete, on-site plant readiness, and funding activation, Minbos is well positioned to advance construction towards dry commissioning.
Newbold also pointed to the contract’s role in materially de-risking project delivery, bringing Minbos closer to supplying domestically produced phosphate fertilizer. This local production is expected to support Angola’s agricultural sector growth and reduce dependency on imports, a strategic benefit for the country’s food security.
Bottom Line?
With construction contracts signed and funding activated, Minbos is entering a critical phase that will test its ability to deliver on schedule and budget amid Angola’s evolving infrastructure landscape.
Questions in the middle?
- How will Minbos manage potential construction risks as it moves toward dry commissioning?
- What are the timelines and milestones for full commissioning and commercial production?
- Will further funding rounds be required if cost inflation or delays arise during Phase 2?