Cabinda Phosphate project secures US$14M for Angola’s fertilizer production push

ANGOLA – South Africa’s International Development Corporation (IDC) has granted a US$14 million loan to Minbos Resources, an Australian mining company with a presence in Angola, to produce fertilizer locally.

Under the Cabinda phosphate project, Minbos aims to reduce Angola’s heavy reliance on fertilizer imports by tapping into the country’s rich phosphate resources.

Construction of the Cabinda fertilizer plant is set to begin soon, with the project expected to be completed within 12 months.

Minbos targets starting production between 2025 and 2026, marking a significant milestone in Angola’s journey toward self-reliance in fertilizer production.

Lindsay Reed, CEO of Minbos Resources, expressed optimism about the project’s progress, stating that the company is “in an excellent financing position” with strong backing from both international and local financial institutions.

According to a feasibility study published in 2022, the Cabinda plant will produce 236,000 tons of fertilizer annually over its 20-year operational lifespan.

According to the African Energy Chamber, Angola currently imports over US$120 million worth of fertilizers annually.

The Cabinda project is expected to address this by establishing a local production facility, ultimately lowering import dependency and boosting the country’s agricultural output.

Minbos Resources has secured additional financing and partnerships to ensure the successful launch of the Cabinda project.

In August 2024, the Angolan Sovereign Fund (FSDEA) approved $10 million in financing for the project, supplementing the initial investment of $48.5 million needed to start production.

Minbos also signed an agreement with Grupo Carrinho, Angola’s largest agro-industrial group, in July 2023. This deal outlines the sale of 868,000 tonnes of phosphate rock from Cabinda over the first seven years of production.

Grupo Carrinho’s facilities are strategically positioned to distribute fertilizers to smallholder farmers, who make up a significant portion of the agricultural sector in Angola. By making fertilizers more accessible and affordable, the Cabinda project is expected to boost farm productivity and crop yields across the country.

Currently, many smallholder farmers in Angola struggle with high fertilizer prices due to import costs, which hampers agricultural productivity.

According to Mimbos, the project could alleviate these challenges by producing fertilizers domestically, allowing farmers to cultivate more land and grow a wider variety of crops.

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