Millennial Potash Considers Expanding Gabon Mine as US Financing Interest Grows

Canadian mining company Millennial Potash is considering increasing the planned production capacity of its Banio potash project in Gabon, potentially raising annual output from 800,000 tonnes to as much as 1.2 million tonnes as interest from prospective buyers and financiers grows.

The company is targeting financial close in August or September 2027, with construction potentially beginning in late 2027 or early 2028. Initial capital expenditure is estimated at US$480 million.

Located on Gabon’s southern coast, the Banio project could become a new source of potash, a key ingredient in agricultural fertilisers. Its development comes as major agricultural economies seek to diversify supplies concentrated in countries including Canada, Russia and Belarus.

Millennial Potash chairman and chief executive Farhad Abasov told Reuters that the company was assessing whether to begin operations at a larger scale in response to interest from potential offtake customers and financiers.

US-backed financing and permits remain critical

Millennial Potash is working to secure a financing package involving the US International Development Finance Corporation (DFC) and other parties to support the project’s development. The DFC has already committed US$3 million towards the definitive feasibility study (DFS), which the company expects to complete by the end of 2026.

Before construction can proceed, Millennial must also convert its exploration licence into a mining permit. The company expects to begin the conversion process in the first quarter of 2027, with approval potentially taking between three and six months.

The proposed construction schedule remains dependent on completing the feasibility study, securing financing and obtaining the necessary regulatory approvals.

Abasov estimates that construction would take approximately 18 to 24 months before production begins. Based on the company’s current timetable, initial output could therefore start around 2029 or 2030. The operation could reach its targeted annual production rate within six months of starting up, he said.

African fertiliser demand offers a potential market

The Banio project is being developed against a backdrop of significant demand for potash in global agriculture. Brazil and the United States are among the major agricultural economies that rely heavily on imported supplies, while African markets also offer opportunities for new producers.

According to Abasov, Africa consumes approximately two million tonnes of potash annually. At its original planned capacity of 800,000 tonnes a year, Banio could theoretically produce an amount equivalent to around 40% of that consumption. At 1.2 million tonnes, the equivalent would rise to approximately 60%.

These comparisons illustrate the project’s potential scale relative to African demand, but they do not represent confirmed sales. Actual market penetration would depend on customer agreements, pricing, distribution infrastructure and competition from established suppliers.

Potential customers are understood to include buyers in the United States, Brazil, Asia and Africa. However, the company has not disclosed specific prospective customers or the details of any offtake agreements.

Production expansion could reshape project economics

Increasing planned output could strengthen Banio’s position in the international fertiliser market, particularly if the company secures sufficient demand and financing. However, a larger operation could also require additional upfront capital and further assessment of its technical and commercial feasibility.

For Gabon, the project represents a potential opportunity to expand mineral production and participate in an international market closely linked to food security and agricultural productivity.

The next major milestones will be completion of the feasibility study, progress on mining permits and confirmation of the financing required to move the project into construction.

Banio exploration camp. (Image courtesy of Millennial Potash.)