Minbos Resources has secured a site for its proposed Cabinda phosphate fertiliser plant in Angola.
The Subantando site is located near the main highway between Cácata and Cabinda City, and has been zoned as an industrial area with the intent to move a number of industrial businesses out of the town of Cabinda.
Minbos said that power and water currently run along the main road, less than 1 km to the site, which will be investigated as a supply for the processing plant as part of the final design. The studies required to obtain the environmental and construction licence are currently being expedited.
The company told shareholders that choosing the Subantando site for the proposed Cabinda phosphate fertilizer plant would deliver significant operating costs and production advantages to Futila, the previous site under consideration and upon which the definitive feasibility study (DFS) was based, including reduced distance for ore haulage from Cácata to the plant, reduced distance for product delivery from the plant to the Port of Cabinda, reduced truck traffic through the city of Cabinda, and reduced costs to hold and maintain site.
The recently complete DFS estimated a capital requirement of $48.5-million to develop the project. The DFS is based on a 187 500 t/y operating capacity, delivering 236 000 t/y of fertilizer over a project life of 20 years, based on a maiden ore reserve of 4.72-million tonnes at 30.1% phosphates at the Cácata phosphate mine.
The base case estimated a post-tax net present value of $203.2-million, an internal rate of return of 39% and a pay-back period of just under five years, with the DFS also estimating average yearly earnings before interest, taxes, depreciation and amortisation of $55-million.