Minbos Resources Ltd has announced that it has signed a 60-year commercial lease for the site of the Capanda green ammonia project, located in Malanje Province, Angola.
Background
The Capanda hydroelectric dam is a hydroelectric dam on the Kwanza River in the Malanje Province of Angola. The facility generates power from four turbines of 130 MW each, giving total installed capacity of 520 MW.
Based on the technical study for the Capanda green ammonia project, released by the company in April 2023, future plans are to produce 112 000 tpy of green ammonia to produce 255 000 tpy of high-density ammonium nitrate (HDAN) which can be used for both fertilizer and mining explosives as an emulsion product.
Angola is seeking to expand its agricultural sector which will require fertilizers, including nitrogen fertilizers. The country has 36 million ha. of arable land but currently only farms 5.5 million ha., mostly by small holder farmers that use little or no fertilizer.
Angola has analogoussoil and climate to the cerrado in Brazil which has increased its land under planting by 20 million hectares in the last 20 years. The green ammonia site is located in the 411 000 ha. Capanda Agro Industrial Pole which is serviced by established highways and the Malanje railway line. The Pole will be a ready-made market for nitrogen and already hosts several large farms including the 30 000 ha. Biocom sugar plantation.
Boasting a diverse and fertile ecology, Angola holds the potential to become one of the leading agricultural producers on the continent. The country’s arable land is well-suited to a variety of crops and livestock including cassava, bananas, potatoes, corn, sweet potatoes, citrus and pineapples. The demand for nitrogenous fertilizers in Angola will depend on the land area under cultivation and the crop selection. Given the available land and the analogy to Brazil, Angola is targeting at least 2 million ha. under commercial cultivation. Historical crops require significatly different nitrogen fertilization rates, for example up to 200 kg/ha. for maize and up to 300 kg/ha. for cotton. At an average consumption of 100 kg/ha. Angola is expected to require approximately 200 000 tpy of nitrogen equivalent to 600 000 tpy of ammonium nitrate. The Capanda green ammonia project would be able to meet half of this demand.
