PERTH (miningweekly.com) – ASX-listed Minbos Resources has flagged a $10-million capital cost saving at its Cabinda phosphate project, in Angola, on the back of a simplified flowsheet.

The company on Thursday reported that following field trials in December last year, which confirmed that phosphate rock from the Cácata mine was suitable as a direct application fertilizer product in most of Angola’s major growing region, the company undertook a review of its production profile.

This review has resulted in a simplified flowsheet to produce a beneficiated phosphate rock (BPR) with the core plant consisting of the crusher, dryer and a bagging plant, and resulting in a cost saving of $10-million.

Minbos noted that the simplified flowsheet was also expected to result in lower operating costs owing to lower energy, maintenance and fixed cost requirements.

The project life at Cabinda is currently estimated at 20 years based on the defined ore reserve, with a production schedule outlined in the definitive feasibility study (DFS) envisaging a ramp-up to full production of the facility over seven years.

The recently completed DFS estimated a capital requirement of $48.5-million to develop the project. The DFS is based on a 187 500 t/y operating capacity, delivering 236 000 t/y of fertilizer over a project life of 20 years, based on a maiden ore reserve of 4.72-million tonnes at 30.1% phosphates at the Cácata phosphate mine.

The base case estimated a post-tax net present value of $203.2-million, an internal rate of return of 39% and a pay-back period of just under five years, with the DFS also estimating average yearly earnings before interest, taxes, depreciation and amortisation of $55-million.

As part of the review, the Minbos completed feasibility work on a Stage 2 expansion for the plant, which is now expected to more than double capacity, with updated capital costs currently being reviewed.

Minbos told shareholders that the company would continue its field trial work with Angola’s national agricultural research and technology development institution Instituto de Investigação Agronómica (IIA), with eight new field trial locations planned over the next four years.