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17 Apr 2024

Angola’s Minbos Resources Secures $14M Debt Facility from IDC

Angola’s Minbos Resources Secures $14M Debt Facility from IDC
Development finance institution the Industrial Development Corporation (IDC) of South Africa has approved a $14 million debt facility for the construction of the Cabinda Phosphate project in Angola. Mineral exploration and development company Minbos Resources – the project’s developer – has received credit committee approval for the funds, enabling the company to kickstart development.

The IDC funding will cover the majority of the project’s total cost – estimated at $24 million – with the remaining $10 million expected to be sourced from Angolan financial institutions and development funders. From first work to first delivery, the project is expected to take nine months to complete.

At present, the execution contract for Phase 1 of the project is ready to be signed. At a cost of $5.5 million, the first phase includes earthworks, civils and drainage. Phase 2 is also set to begin shortly, with preparations for the design for the balance of works and the package for the pricing and contracting underway. For Phase 2, construction is expected to take five months and is estimated to cost $18.5 million.

Phase 3 – the commissioning stage – is expected to take one month. The company has also started exploring opportunities for the facility’s expansion, which could be integrated with the development of Phase 2 of the project.

The financing follows the implementation of Presidential Decree No. 213/23 in January 2024, which mandates the prioritization of local fertilizers. Currently, 100% of the country’s fertilizer is imported. However, with the decree, consumers are required to purchase from Minbos Resources – poised to be the country’s sole supplier –, with imports only approved once alternative purchasing options have been exhausted.

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