(Ecofin Agency) – In Angola, the contribution of the mining sector to the economy largely depends on the exploitation of diamonds. With Cabinda, the production of phosphates represents an opportunity for diversification.
The Cabinda phosphate mine should go into production in the last quarter of 2023. This was announced by its owner Minbos Resources on Monday, October 17, on the occasion of the publication of the results of the definitive feasibility study carried out on this mine. project located in Angola.
According to the reference scenario, the initial capital required is $48.5 million to build a mine capable of producing 236,000 tonnes of fertilizer annually over a lifespan of 20 years. The company will have to mobilize 40 million dollars to supplement its equity. Note that the payback period for the investment is 4.8 years.
In addition, gross revenues over the life of mine are estimated at $1.4 billion. The net present value after tax is $203.2 million, with an internal rate of return of 39%.
« The feasibility study demonstrates that the Cabinda phosphate project has a robust economy, with relatively low capital requirements, putting Minbos on the path to near-term production“says Lindsay Reed, CEO of the company.