In a major boost to its plans, Minbos Resources, an Australian mining company, announced that Angola’s Sovereign Wealth Fund, Fundo Soberano de Angola (FSDEA), has approved a $10 million investment in the company. This investment will help finance the construction of the Cabinda Phosphate Fertilizer Project (CPFP) in Angola, a key initiative aimed at boosting the country’s agricultural sector.
The CPFP is centered around the Cácata phosphate deposit and the Futila fertilizer plant in the Cabinda region. The project is expected to produce 236,000 tons of fertilizer each year for 20 years, a significant output that could transform both local and export markets. The fertilizer, rich in phosphates, will be crucial for improving soil fertility, which in turn can increase crop yields and support food security in Angola and neighboring countries.
The $10 million investment from FSDEA is not just a vote of confidence in Minbos, but also in Angola’s future as a key player in the agricultural sector. The approval came after a thorough review, or due diligence, by FSDEA, in partnership with the Industrial Development Corporation of South Africa Limited (IDC). This process ensured that the investment is sound and aligned with the goals of both Minbos and Angola.
With this investment, Minbos is now closer to fulfilling one of IDC’s main conditions for providing $14 million in construction funding for the CPFP. IDC’s funding, approved in April, is critical for getting the project off the ground. Together, the FSDEA and IDC investments will put Minbos in a strong position to start building the Cabinda phosphate mine and fertilizer plant, which are expected to be fully operational by December 2025.
The development of the CPFP is a significant step forward for Angola’s economy. The project will create jobs, boost the local economy, and position Angola as a leading exporter of phosphate fertilizers. This is particularly important as the world faces increasing food demand and challenges related to soil degradation.
Minbos’s Managing Director, Lindsay Reed, expressed his excitement about the partnership with FSDEA and IDC, highlighting that both organizations share the same vision for the CPFP. Reed emphasized that this collaboration would not only strengthen the project’s financial foundation but also help manage risks associated with serving customers both locally and internationally.
The Cabinda phosphate project has a long-term vision that extends beyond just producing fertilizer. It represents a strategic move for Angola to diversify its economy, which has traditionally relied heavily on oil exports. By developing its agricultural sector, Angola can reduce its dependence on imported fertilizers and improve its food security. Moreover, the project aligns with broader efforts to promote sustainable agriculture in Africa.
Minbos plans to use the phosphate-rich deposits at the Cácata mine to produce high-quality fertilizers that can meet the needs of farmers in Angola and beyond. The company’s focus on sustainable practices means that the project will not only boost agricultural productivity but also contribute to environmental conservation.
With the $10 million investment from FSDEA and the anticipated funding from IDC, Minbos is now on track to start construction on the Cabinda project. The company expects to finalize the remaining conditions set by IDC in the coming weeks, paving the way for the project’s full-scale development.
Once completed, the Cabinda project will be a game-changer for Angola’s agricultural sector. It will provide farmers with affordable, locally produced fertilizers, reduce the country’s reliance on imports, and create new opportunities for export. For Minbos, the project represents a significant milestone in its growth strategy, positioning the company as a key player in the global phosphate fertilizer market.
Source: Mining Weekly
