Minbos Resources Limited has issued an update on its progress at the Cacata Phosphate Deposit in Angola, saying it will work to pursue the site’s potential for yellow phosphorus (P4) critical minerals as part of its stage 2 expansion effort.
The company believes that Angola, which has cheap electricity prices and an economic-free zone, presents a potentially compelling opportunity for P4 production.
P4 is required to produce specialist phosphorus chemicals needed by a wide range of high-value end uses, including electronics, fire safety, batteries, industrial water and process treatment, technical plastics, pharmaceuticals, lubricants, and metal treatments.
Minbos has already submitted applications to secure prospecting licences in Angola with known phosphate occurrences that can potentially support its stage 2 expansion efforts.
The company added that it would continue to engage with local communities and potential P4 partners to secure technical and funding support to help advance its strategy.
To boost the capacity of the beneficiation plant for the stage 2 expansion, Minbos has estimated that it will need additional capital expenditure ranging from $2.53 million to $4.9 million.
The strategy has been developed on the back of the $25 million placement completed by the company in July 2022, which included signing a strategic cooperation agreement with a syndicate of investors seeking exposure to ferro phosphate and lithium ferro phosphate projects.
“The P4 strategy allows us to explore the utilisation of medium grade phosphate rock with a high silica content unsuitable for the fertilizer market, and outside of our existing mine plan, and combine it with cheap electricity in Angola to supply a critical mineral in the battery materials supply chain,” said Minbos CEO Lindsay Reed.
She added that increased production levels and new investments could also potentially lower the total cost of phosphate rock production for both the fertilizer and P4 markets.
