MNB starts earthworks at phosphate fertiliser project in Angola

Our phosphate Investment Minbos Resources (ASX: MNB) just started site preparation works at its phosphate deposit in Angola.

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

At the moment, MNB’s at the stage where its constructing its processing facility capable of producing fertiliser from its mined material:

(source)

And today, MNB confirmed that earthworks have commenced on its mine site:

These works get the mine site ready for the phosphate mining which is needed to feed the plant, which MNB says remains on track for planned “commissioning in 2027”. (source)

It feels like after a few years of delays (with financing), it's finally all happening for MNB…

And just as the macro for phosphate/fertiliser has turned in MNB’s favour (mainly because of the war in the Middle East):

(source)(source)(source)(source)(source)

We think the supply/energy shock will make MNB’s product more of an option for the export market (which may have otherwise been closed to additional supply out of Africa):

We note, export is a part of MNB’s sales plan through the Porto do Caio.

See our brief write up on that here: MNB - Trump declares phosphate fertiliser emergency with signed Executive Order

What we want to see MNB deliver next

🔄 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. 🔲 Electricals 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