- Minbos Resources (MNB) plans to update the Definitive Feasibility Study (DFS) for its Cabinda phosphate project in Angola amid high fertilizer prices
- Fertilizer prices hit new records as global suppliers are hit by multiple factors, including war in Ukraine, Chinese fertilizer export bans and supply chain inflation
- The company is completing a DFS that produced a blend of MAP and phosphate rock fertilizer, however, it will now include both blended fertilizer and enriched phosphate rock.
- The engineering calculations for the DFS will be completed in the coming weeks and will be confirmed during the next pilot test, scheduled for the second week of June.
- MNB shares are down 6.45%, trading at 14.5 cents
Minbos Resources (MNB) has updated its Definitive Feasibility Study (DFS) for the Cabinda phosphate project in Angola.
The new study will include new plant layouts to capture current market opportunities that show strong potential demand for its rock phosphate (PR).
Fertilizer prices hit new records as global suppliers are hit by multiple factors, including the war in Ukraine, Chinese fertilizer export bans and supply chain inflation. Consequently, the prices of raw materials that make up processed fertilizers have increased by 30% since the beginning of the year. .
Globally, phosphate markets are booming, driven by buyers’ fears that a major disruption in global ammonia supply could, in the short term, lead to cuts in diammonium phosphate (DAP) production. ) and monoammonium phosphate (MAP).
MAP and PR are key ingredients in Cabinda Phosphate granules, high fertilizer prices also provide greater opportunities with rising global prices of MAP and PR which were only $200 ($269) per ton two years ago, today they are 1000 USD.
As demand grows, Minbos has recently been approached by mega-farms and regional distributors regarding the availability of Enriched Cabinda Phosphate Rock (CPR), which has proven to be a viable nutrient source for the majority of new agricultural products.
“Since the company was completing a DFS that produced a fertilizer blend of MAP and
Phosphate Rock, we have made the decision to expand the scope of DFS to include both blended fertilizers and enriched phosphate rock,” said CEO Lindsay Reed.
“The company is confident that it can achieve similar efficiencies, reduce working capital requirements, reduce customer expenses and potentially accelerate the full plant utilization schedule, all without delaying plant commissioning. factory.”
An external review of the process flowsheet by IFDC concluded that the current plant is capable of producing enriched phosphate rock products with minor modifications.
The technical calculations will be completed in the coming weeks and will be confirmed during the next pilot test (which will produce seven tonnes of product), scheduled for the second week of June at IFDC headquarters.
The engineering component of the revised DFS can be completed in approximately three months and the company will provide an update on the market component after technical discussions with potential new customers.
Meanwhile, the company will continue the construction of its phosphate plant through its EPCM subcontractors.
MNB shares were down 6.45%, trading at 14.5 cents at 11:57 a.m. AEST.