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MNB’s fertiliser plant getting closer: EPCM contract signed


Published 16-JUN-2023 13:00 P.M.


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Another step closer towards making a major African fertiliser project reality.

Today, our African fertiliser and green ammonia Investment, Minbos Resources (ASX:MNB), announced that it has signed an EPCM contract for the construction of the Cabinda Phosphate Fertilizer Plant.

The US$4.25M EPCM contract is an engineering contract between MNB’s subsidiaries and EPC Engenharia’s Angolan subsidiary EPX Angola.

Importantly work is already underway at the site with clearing and perimeter fencing works as seen below:

Screenshot 2023-06-16 at 1.20.19 pm

Screenshot 2023-06-16 at 1.20.31 pm

MNB is our 2022 Wise Owl Pick of the Year, and one of our favourite Investments - in fact, we like it so much we went to Angola to learn more about the project.

What’s next for MNB?

🔄 Offtake agreement

As we flagged in our latest note on MNB, an offtake agreement for the phosphate fertiliser product could be coming shortly, as MNB indicated two weeks ago.

🔄 Funding for the remainder of CAPEX on the project

MNB recently confirmed that progress was being made on non-dilutionary funding (debt and/or prepayment) for most of the remaining project CAPEX.

In the March quarterly report MNB confirmed that the remaining CAPEX for the project was ~US$30M.

MNB expects this to be finalised in August/September.

All up, we think MNB is doing an excellent job of advancing its projects - and we’re eagerly awaiting more news out of the phosphate project and the green ammonia project - more information can be found on the green ammonia project in this note.