The Minbos Resources Ltd (ASX: MNB) share price is on the rise today.
At the time of writing, shares in the Australian-based phosphate specialist are swapping hands for 18 cents apiece, up 5.88%. In early trade, they were as high as 20 cents, which represents a 17.6% gain on the previous closing price.
This comes after the company announced a key update regarding the production of nitrogen fertiliser and green ammonia in Angola.
Here are the details out of the Minbos camp today.
Image source: Getty Images
What was announced?
In news possibly fuelling the Minbos Resources share price, the company has received support from the Angolan Ministry of Agriculture to produce green ammonia and nitrogen fertiliser in the country.
This came after Minbos submitted a letter of intent (LOI) to several departments in the Angolan cabinet seeking approval.
The LOI contained a proposal to "develop a nitrogen fertiliser facility using green ammonia produced from hydroelectric power from the Capanda Hydroelectric Dam".
For reference, the Capanda Hydroelectric Dam is located on the Kwanza River, Angola. It generates a total installed capacity of 520 megawatts from four turbines.
Minbos intends to produce nitrogen fertiliser from green ammonia by adding nitrogen to phosphate from its Cabinda Phosphate project. It will sell the fertiliser locally to what the company claims is one of the world's most prospective agricultural regions.
Pleasingly, the Ministry has agreed to provide the necessary support to Minbos to ensure the implementation of the project.
The proposed location of the facility is strategically located "within trucking distance to the Malange agricultural corridor and major regional mining projects".
This should reduce transport and distribution costs, ensuring a competitive cost advantage, the company says.
From its discussions with the Ministry of Energy in Angola, Minbos confirms 100 megawatts of hydropower is available for the project. It can also make a submission for a "staged tariff structure to offset high fixed costs during the market development phase".
Speaking on the announcement likely driving the Minbos Resources share price, CEO Lindsay Reed said:
Green ammonia is a natural progression for Minbos and its NPK for Angola strategy and a great opportunity for Angola to establish a competitive sustainable fertiliser industry to underpin the development of its agricultural sector. We are excited about advancing this project with the support of the Angolan Government.
Minbos Resources share price snapshot
The Minbos Resources share price has been an absolute star on the ASX these past 12 months. It has climbed around 350% during that time, and 370% this year to date.
That's a galaxy away from the S&P/ASX 200 index (ASX: XJO)'s gain of around 25% in the last 12 months and 10% year to date.
