MNB - phase 2 construction works underway on phosphate fertiliser project

Our Investment Minbos Resources (ASX: MNB) has started Phase 2 construction works on its phosphate project in Angola.

MNB is building Angola's only integrated phosphate mine and fertiliser plant.

This weeks announced from MNB had three updates across financing, construction and mining readiness:

1. On the finance side - MNB said representatives of the “Fundo de Garantia de Crédito” (FGC - the Angolan credit guarantee fund) visited site in mid-August as part of the final assessment for the guarantee supporting MNB's Banco de Fomento Angola (BFA) loan facility. Once the FGC guarantee gets issued, then the BFA can release the initial drawdown funding on a ~US$5.48M loan.

(source)

2. On construction - MNB confirmed phase 2 construction commenced, with steel framework for the plant due to arrive this month and constructions teams arriving to site in “early September”. MNB said that installation was scheduled for for 7th September, the day after the expected arrival date. Other work underway includes ordering long-lead items (like the weighbridge) and delivery of tools and materials to site.

(source)

3. On mining readiness - MNB confirmed that its Phase-1 Mine Plan had been submitted to the Angolan authorities with two mining contractors shortlisted and negotiations progressing. MNB re-iterated guidance of Q2-2027 for first mining…

What do we want to see MNB deliver over the coming months?

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

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 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