Minbos Resources Ltd. signs MOU with Grupo Carrinho for supply of Cabinda phosphate rock

Highlights

The MOU represents a significant milestone as the first offtake for Cabinda phosphate rock signed with one of Angola’s largest agro-industrial groups.

Fertilizer supply agreement for up to 869 000 t of Cabinda Phosphate Rock over the first seven years of production (to 2030), representing 66% of Stage 1 production over the corresponding period.

The MOU includes a proposed pricing mechanism, pegging the relative agronomic effect of Cabinda Phosphate Rock fertilizer to the price of Triple Super Phosphate. The pricing mechanism is in line with the assumptions used in the Definitive Feasibility Study.

Carrinho has a 1 million tpy grain and oil processing facility in Benguela, fed by a network of silos in the Huambo and Huila Provinces. It is backed by a Sovereign Guarantee to support the development of the Benguela Facility, providing smallholder farmers with fertilizer and training, enabling them to supply grain and oil seed to the facility.

The MOU outlines that Minbos will supply Cabinda phosphate rock to Carrhino’s Benguela facility, through the Port of Lobito, beginning in the 2023/2024 growing season.

Other key components of the agreement include a technical collaboration with Carrinho and Minbos to optimise the use of the Cabinda Phosphate Rock, including sharing field trial results, involvement in future trials and demonstrations with small and large-scale commercial farmers.

The MOU is subject to successful Carrinho-Instituto de Investigação Agronómica/Minbos field trials to affirm the suitability of the Cabinda phosphate rock as a fertilizer.

Minbos does not consider this to be a material risk given that it has already demonstrated the suitability and efficacy of Cabinda phosphate rock as a fertilizer in the Minbos-IIA field trials.

Commenting on the MOU, CEO Lindsday Reed, said:

“It’s hard to underestimate how important this offtake agreement is for Minbos and our plans to be Angola’s largest supplier of fertilizer. Angola is undergoing a fundamental economic overhaul as the government seeks to diversify its economy away from oil and gas and has agriculture firmly in its sights, with boosting crop yields inextricably linked to food security. This is a proud day for the company as we begin our development and production journey. To have so much of our initial production spoken for by one major partner, allows us to plan for new stages and wider customer engagement. We look forward to working in partnership with the Carrinho group and the Angolan Government to ensure that our Cabinda phosphate rock fertilizer is applied where it can help. We share their vision and commitment to Angola to contribute to the food and nutritional self-sufficiency of all Angolan people. As the market in Angola continues to develop, we look forward to growing our business with groups like Carrinho with the knowledge that Angola’s agricultural market is in its infancy and, as our fertilizer lifts yields for smallholder farmers, their appetite for our product will continue to grow.”

Read the article online at: https://www.worldfertilizer.com/phosphates/25072023/minbos-resources-limited-signs-mou-with-grupo-carrinho-for-supply-of-cabinda-phosphate-rock/