New agreement allows Minbos to develop fertilizer market in Angola
Minbos Resources Limited (ASX:MNB) and the International Fertilizer Development Centre (IDFC) have implemented a Memorandum of Understanding (MOU) to develop and grow the Small Holder Farmer market in Angola.
The IFDC is an international non-for-profit organisation, dedicated to scientific innovations that increase global food production, protect the environment and empower Small Holder Farmers.
In improving the lives and productivity of Small Holder Farmers, the IFDC runs country-scale agricultural projects across Africa which introduces farmers to improved agricultural practises, fertiliser technologies and facilitation of market access.
Minbos has worked collaboratively with the IFDC for several years, helping to develop the company’s Cabinda Phosphate Product, most notably in developing market demand in one of the most prospective fertiliser regions globally.
The new MOA provides the platform to develop a joint proposal for a multi-year project designed to support the development of the local fertiliser market in Angola.
Angola is one of the world’s great untouched agricultural regions, possessing over 35 million hectares of arable land, high rainfall and some of the lowest rates of fertiliser use globally.
Minbos hopes to leverage the IFDC’ innovative research and market expertise to identify sustainable solutions for soil and plant nutrition for the benefit of Small Holder Farmers, local communities and the environment.
Utilising strategic partners, the IFDC works with national and private parties to create or expand Small Holder fertiliser demand in parts of Angola.
Productivity gains are predicted to cause marketable crop surpluses, encouraging additional farmer investment in fertilisers.
More than four million Small Holder Farmers are expected to be reached by the IFDC Angola project, which will be underpinned by Minbos' fertiliser production.
The Cabinda Phosphate Project will commence production at 50,000tpa. Given the large Small Holder Farmer market in Angola and the IFDC’s strong record of delivering high-impact projects which boost fertiliser usage, demand is expected to exceed the nameplate capacity of 150,000tpa.
Commenting on the MOU, Minbos CEO Linday Reed said, “As the Company looks to enter production in early 2022, securing market offtake through a program that unlocks value for local Small Holder Farmers and government stakeholders, as well as Minbos shareholders, is key to our successful collaboration.
"This first step in developing a project to establish a new market in Angola marks another milestone for Minbos as we look towards production in early 2022.”