PERTH (miningweekly.com) – The definitive feasibility study (DFS) for the Cabinda phosphate project, in Angola, has estimated a capital requirement of $48.5-million to develop the project, with owner Minbos Resources saying it will only require $40-million in funding after allocating existing cash.
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 payback period of just under five years, with the DFS also estimating average yearly earnings before interest, taxes, depreciation and amortisation of $55-million.
“Supported by a long mine life, globally important and high-margin product and a market hungry for fertiliser, the DFS demonstrates that the Cabinda phosphate project has robust economics with relatively low capital cost requirements, putting Minbos on a pathway to near-term production,” said CEO Lindsay Reed.
“Our fertiliser strategy has been developed following more than five seasons of greenhouse and field trials and supported by a strong and sustained commitment to customer engagement which has broadened the market opportunity to nitrogen fertiliser and key micronutrients. Work carried out over the past 24 months has Minbos strongly positioned to capitalise on the fertiliser opportunities in new markets regionally, as well as new commodities and mining explosives.”
First production from Cabinda is currently expected in the fourth quarter of next year, with fabrication of key major equipment now completed.