Minbos Secures $36M Funding, Advances Angola Fertilizer Plant to 59% Completion
Minbos Resources has secured key financing and made significant construction strides on its Angolan phosphate fertilizer plant, while rolling out promising new fertilizer blends to support local agriculture.
- Secured $12M term loan from Banco BAI with revised terms
- Received $10M from Angolan Sovereign Wealth Fund
- Finalizing $14M debt facility with International Development Corporation
- Construction of Subantando Fertilizer Plant 59% complete
- New PRIMEIRO PLUS+ fertilizer blends show strong trial results
Financing Milestones
Minbos Resources Limited (ASX, MNB) has made notable progress in funding its phosphate fertilizer project in Angola during the June 2025 quarter. The company signed a revised US$12 million term loan agreement with Banco BAI, reflecting an updated sales strategy and easing previous security conditions. This facility operates under Angolan Central Bank regulations aimed at supporting agricultural development. Additionally, Minbos received all three tranches totaling US$10 million from the Angolan Sovereign Wealth Fund, and is on track to finalize a US$14 million debt facility with the International Development Corporation, pending completion of certain conditions expected in August.
Construction Progress at Subantando
The Subantando Fertilizer Plant in Cabinda, Angola, reached 59% completion by the end of June. Key civil works such as road subbase installation, excavation for building foundations, and drainage systems are substantially complete. The company has also approved orders for long lead items essential for the next stage of construction, including a diesel storage system and power line connection, valued at over A$800,000. Importantly, the project has maintained a strong safety record with no reported incidents during the quarter.
Innovative Sales and Marketing Approach
Minbos is positioning itself as a collaborative enabler in Angola's evolving agricultural sector. Moving away from competition, the company aims to accelerate sector growth by partnering with farmers, agronomists, and distributors. Its flagship fertilizer brand, PRIMEIRO, addresses local soil fertility challenges, while the newer PRIMEIRO PLUS+ blends combine phosphate rock with imported nitrogen and potassium to offer a more complete nutrient solution. Field trials in Uíge Province have demonstrated strong yields and effective application methods, informing ongoing product development and farmer education initiatives.
Financial Health and Outlook
As of June 30, Minbos held A$8.3 million in cash with no debt, reflecting prudent financial management amid ongoing project expenditures. The company reported payments of $219,000 to related parties, primarily for director fees and corporate management services. Notably, there was no exploration expenditure during the quarter, indicating a focus on development and commercialization phases. With financing facilities nearing completion and construction advancing steadily, Minbos is well-positioned to meet its upcoming milestones.
Broader Implications
Minbos’ integrated approach, combining financing, construction, and tailored product development, reflects a strategic commitment to supporting Angola’s agricultural transformation. By fostering transparent market mechanisms and collaborating with government and private sector stakeholders, the company aims to unlock sustainable growth for smallholders and commercial farmers alike. The success of PRIMEIRO and its enhanced formulations could serve as a catalyst for broader adoption of modern fertilizer solutions in the region.
Bottom Line?
Minbos is building momentum with solid funding and construction progress, but market adoption of its fertilizer solutions will be the true test ahead.
Questions in the middle?
- Will Minbos secure the final approvals to draw down the full Banco BAI and IDC loans on schedule?
- How quickly can PRIMEIRO PLUS+ products gain traction beyond trial farms into wider commercial use?
- What impact will Angola’s evolving agricultural policies have on Minbos’ growth and sales strategy?
