Minbos Resources signs APEX contract, paving the way for development of the Cabinda phosphate project
Published by Emily Thomas,
Deputy Editor
World Fertilizer,
Minbos Resources Limited is pleased to announce that it has executed its Private Investment Contract with Angola’s Agency for Private Investment and Promotion of Angolan Exports, confirming the company’s level of investment commitment, tax incentives and local employment for the manufacture and distribution of phosphate fertilizer in Angola.
Securing an AIPEX Private Investment Contract is the final step for foreign entities intending to invest in Angola and represents a significant achievement for the company.
The contract formalises months of negotiations on the company’s level of investment commitment in Angola and paves the way for the construction of the Cabinda Phosphate Fertilizer Project with most of the major parts and components of the phosphate plant either ready to be shipped or currently on the water.
The company has previously signed a Mineral Investment Contract (MIC) for the Cabinda Mining Phosphate Project with Angola’s Mineral Resources and Petroleum1, providing for the exploitation of the phosphate rock by Minbos within the Cabinda Phosphate Project concession area.
Key terms of Aipex contract
On 22 December 2022, the company’s wholly owned Mauritian subsidiary Phobos Ltd (Phobos), which will be the Special Purpose Vehicle of the Cabinda Phosphate Project, executed a Private Investment Contract with the agency for Private Investment and Promotion of Angolan Exports (AIPEX).
The contract confirms the company’s foreign investment in an Angolan entity, Soul Rock Limitada, which will serve as the fertilizer manufacture and distribution company. Phobos will own 85% of Soul Rock and local Angolan partners will hold the remaining 15%.
The Private Investment Contract is a significant achievement for the company as it formalises months of negotiations related to the level of investment commitment, the level of local employment and of tax incentives for the Cabinda Phosphate fertilizer factory located in the Development Zone D in Cabinda.
The key points of the contract are as follows: The company has committed to a minimum investment, in the form of loans and capital, that total US$21.36 million.
Part of the investment commitment is fulfilled by the importation of at least US$7 million of equipment for construction of the phosphate fertilizer plant which will be exempt from all importation taxes and customs duties.
The project will receive a 90% reduction in Corporation Tax for the first 12 years of operations and, for the same period, have a 90% reduction in withholding tax on disbursement of dividends abroad.
Other tax incentives include a Tax Credit for six years, equivalent to 30% of the investment, and a deferral period on the payment of taxes.
Read the article online at: https://www.worldfertilizer.com/phosphates/11012023/minbos-resources-signs-apex-contract-paving-the-way-for-development-of-the-cabinda-phosphate-project/
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