Australia fertilizer firm Minbos Resources has successfully executed a loan facility agreement worth US$14 million (approximately A$20.33 million) with the International Development Corporation of South Africa (IDC) to support its Cabinda Phosphate Project in Angola. With a current market capitalization of A$50.96 million, the company has indicated that this five-year loan facility will primarily fund the construction of the Cabinda fertiliser plant, a critical step in enhancing agricultural productivity in the region.

On September 6, 2024, Minbos welcomed key representatives from Banco BAI, including the Chief Executive, four directors, and management, to the project site in Angola. The visit included an inspection of several critical locations, such as the Cácata phosphate mine, the site designated for the Subantando fertiliser plant, and the deep-water port at Porto do Caio. Managing Director Lindsay Reed was present in Johannesburg, South Africa, to execute the loan agreement on behalf of Minbos and its Angolan subsidiary, Soul Rock. Reed expressed confidence in the company’s funding position, stating that Minbos is now in a “great funding position” with a complementary mix of solutions to advance the project. He remarked on the importance of the IDC’s backing, saying, “It is wonderful to have the support of the South African IDC for this important project in Sub-Saharan Africa.” He also acknowledged the substantial support from prominent banking and investment institutions in Angola, reinforcing the project's significance for agriculture in the country.

In addition to the IDC loan, Minbos noted that a separate US$15 million term loan proposal is currently pending credit committee approval, which is progressing positively. The finalization of loan documentation, along with the requisite legal and regulatory processes, is anticipated to take several months. Approval for this loan is also dependent on securing guarantees from the Fundo de Garantia de Crédito.

Furthermore, the Fundo Soberano of Angola has requested that its investment in Minbos be limited to less than 10% of the company’s ordinary shares. The remainder of the US$10 million investment will be directed into Minbos’s wholly owned Mauritian subsidiary, Phobos, which holds an 85% stake in the Angolan entities involved in the Cabinda Project.

The Cabinda Project benefits from a promising 20-year mine life and offers a globally significant high-margin product. A Definitive Feasibility Study has demonstrated the project’s robust economic potential, coupled with relatively low capital expenditure requirements, positioning Minbos on a pathway to near-term production. As a company focused on fertiliser production, Minbos Resources is committed to establishing a nutrient supply and distribution network that stimulates agricultural growth and promotes food security in Angola and the wider Congo Basin, thus contributing to the region's economic development.