Millennial Potash Corp. (TSX.V: MLP) (OTCQB: MLPNF) is advancing its Banio Potash Project in Gabon, West Africa, a large-scale deposit strategically located on the Atlantic coast. The project has garnered significant attention and support from both U.S. and Gabonese governments, highlighting its importance in the global push for critical minerals. In 2025, potash was added to the U.S. Critical Minerals List, reflecting the commodity's critical role in food security and the risks associated with its highly concentrated global supply. This designation underscores the strategic value of developing new sources outside of traditional producers.
The U.S. International Development Finance Corporation (DFC) has committed US$3 million in non-dilutive funding to complete a Definitive Feasibility Study (DFS), which is currently underway alongside an Environmental and Social Impact Assessment. These studies are expected to support the company's mining license application in Gabon, a key step toward development. The project is led by the team behind Millennial Lithium, Potash One, Allana Potash, and Energy Metals, which were acquired for approximately $490 million, $430 million, $170 million, and $1.8 billion respectively. Management and insiders hold approximately 40% of Millennial's outstanding shares, aligning their interests with shareholders.
The Banio deposit sits within the West African Evaporite Basin, where drilling has intersected cumulative potash thicknesses commonly exceeding 100 meters. An updated Mineral Resource Estimate announced in November 2025 reported Measured and Indicated Mineral Resources of 2.45 billion tonnes grading approximately 15.6% KCl and Inferred Mineral Resources of 3.56 billion tonnes grading approximately 15.6% KCl. These figures represent increases of 275% and 210% respectively over the maiden estimate, and they come from drilling that covers only about 5% of the company's 1,500 km² license area, indicating substantial growth potential.
A Preliminary Economic Assessment (PEA) completed in 2024 outlined a solution mining operation producing 800,000 tonnes per year of granular muriate of potash. The PEA reported an after-tax net present value (NPV10) of US$1.07 billion and an after-tax internal rate of return (IRR) of 32.6%, with initial capital costs estimated at US$480 million and operating costs of US$61 per tonne. The low-cost structure is underpinned by solution mining, thick potash seams, simple mineralogy, and coastal logistics. Shipping to Brazil, the world's largest potash importer, is estimated at approximately US$22 per tonne, enhancing the project's economic viability.
The implications of this project extend beyond corporate success. If developed, Banio has the potential to become Africa's first potash mine, supplying not only Brazil but also the United States, Europe, and Asia. This would diversify global potash supply, reducing dependence on a few dominant producers and mitigating supply chain risks. The U.S. government's involvement through the DFC signals a strategic interest in securing critical minerals from reliable partners. For Gabon, the project could bring significant economic development and infrastructure improvements. With the DFS underway and strong government backing, Millennial Potash is positioned to play a pivotal role in meeting global food security needs while delivering substantial returns to investors.
