MNB - phosphate fertiliser project construction update

Our Angolan phosphate Investment Minbos Resources (ASX: MNB) just put out a broad progress update on its Cabinda Phosphate Project.

MNB is building Angola's only integrated phosphate mine and fertiliser plant, and recently locked in the final funding needed to complete construction.

Today's update covers construction progress, finance drawdowns and early local market demand:

(source)

The key points for us:

1. Phase 2 structural steel fabrication has commenced, with construction on track for completion and dry commissioning in Q2 2027.
2. Lenders' technical advisors have cleared the Cabinda site visit, unlocking ongoing releases from the US$16M IDC facility, with the US$5.4M BFA facility drawdown on track for August.
3. 20 of Angola's largest commercial growers have committed to the 2026/27 fertiliser demonstration program.

That last point is one we really like, it’s great to see local growers will be getting first use and an opportunity to benefit immediately from this project.

Proving that it works and benefiting the local community can always provide a company with benefits down the track, so could be a genuine win-win situation.

MNB also included some progress picture updates, with steelworks and piping progressing along and minor civil works now being completed on site:

(source)

The phosphate fertiliser emergency is impacting more than just Africa's ability to grow food

It is common to think that the Western world has plentiful food supply chains from the source and that it is Africa which could benefit most from a project such as this

However, just last month, President Trump signed an Executive Order declaring a national emergency over US fertiliser supply, temporarily suspending duties on Moroccan phosphate imports.

When fertiliser is important enough to warrant an executive order, governments are clearly starting to treat it as a strategic resource.

And as a result the US has made a move to make imports form Africa (specifically Morocco) more obtainable for USA farmers:

(source)

MNB's strategy is dual-market, selling into Angola's domestic agricultural market AND into exports, with first shipments through the Porto do Caio deepwater port targeted for 1H 2027.

(source)

We recently added to our position in MNB and are Invested to see the project get into production, you can read our Deep Dive here for more: We just put more money into MNB…here's why

What do we expect MNB to deliver?

Complete Phase 2 construction

We want to see the plant assembled and reach dry commissioning.

Here are the milestones we are tracking: 

1. ✅ Civil works complete
2. 🔄 Structural steel and mechanical installation
3. 🔲 Electrical, instrumentation and process control installed
4. 🔲 Dry commissioning achieved

Complete the funding package

We want the full project funding closed out to cover construction AND ramp-up to full operations (“wet commissioning”).

Here are the milestones we are tracking:

1. 🔄 Transfer of Mining Investment Contract and Mining License
2. ✅ US$10M FSDEA equity received
3. ✅ US$16M IDC loan signed, drawdowns underway
4. 🔄 US$5.48M Banco de Fomento Angola facility formalised
5. 🔄 Working capital facility secured (FSDEA joint task force)

First production and first sales

We want to see the plant wet commissioned, first product produced, and first revenue banked.

Here are the milestones we are tracking:

1. 🔲 Wet commissioning
2. 🔲 THE photo: the first sack of Angolan-produced phosphate Fertiliser
3. 🔲 First shipment to a customer (including any early unprocessed rock sales)
4. 🔲 Binding offtake agreement(s) converted from existing MoUs/HOAs
5. 🔲 First revenues reported