Name of the Project
Cabinda phosphate project.

Location
Cabinda, Angola.

Project Owner/s
Minbos Resources.

Project Description
A definitive feasibility study has shown the project to have robust economics, with relatively low capital-expenditure requirements.

The project includes the Cácata phosphate deposit and the Futila fertiliser plant.

The phosphate deposit has proven and probable reserves of 4.72-million tonnes at 30.1% phosphorous pentoxide. The mine supporting the ore reserve is based on the openpit mine using a conventional truck-and-shovel mining methodology.

The fertiliser plant will have a capacity of up to 187 500 t/y in a one-plant scenario, expanding to two plants in supporting an estimated 20-year project life. Each train will have a production capacity of about 187 500 t/y.

Base case fertiliser production is estimated at 236 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has an after-tax net present value, at a 10% discount rate, of $203.2-million and an internal rate of return of 39%, with a payback of 4.8 years.

Capital Expenditure
$48.5-million.

Planned Start/End Date
First production is expected in the fourth quarter of 2023.

Latest Developments
The Angolan Sovereign Wealth Fund has confirmed approval for a $10-million strategic investment in the company.

The investment will support the construction of the Cabinda project.

The proposal contemplates a $10-million investment at the greater of A$0.08 a Minbos share, or the volume-weighted average price for Minbos shares for the ten days immediately prior to the execution of definitive transaction documents.

FSDEA completed its due diligence in cooperation with the Industrial Development Corporation of South Africa (IDC) and understands its investment will enable the company to meet IDC’s condition precedent of raising $11-million for equity funding to support the development of the project.

Minbos expects to finalise the balance of the IDC’s conditions precedent for the $14-million construction funding provided by the IDC in the coming weeks.

The IDC facility, which received credit committee approval in April this year, is pivotal in placing Minbos in a fully funded position to start construction of the Cabinda project.

Key Contracts, Suppliers and Consultants
DRA (principal engineer process plant design and costing, including infrastructure for granulation plant); IFDC (fertiliser trials, granulation and beneficiation pilot testing, process design inputs, and marketing studies); FEECO (major plant equipment design and supply); Mintek (material characterisation); SRK (mineral resource statement); Orelogy/Majesso (pit optimisation, mine design, scheduling, reserve statement and contract mining cost estimates); GRD Engenharia (geotechnical studies on plant site); HCV Africa (environmental baseline and social studies, environmental impact and social assessment); Grupo Simples (environmental-impact study and waste management plan); and EPC Engenharia (detail design, procurement, engineering, procurement and construction management services).

Contact Details for Project Information
Minbos Resources, tel +61 8 6270 4610 or email info@minbos.com.