Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF), which is advancing the Banio Potash Project in Gabon, has welcomed the US Geological Survey’s decision to include potash on the 2025 List of Critical Minerals.
According to the company, the addition of potash, a key agricultural input, to the list reflects efforts to diversify supply chains and reduce dependence on major producers such as Canada, Russia, and Belarus.
"The official recognition of potash as a critical mineral by the US government is a major milestone for our industry,” Millennial chair Farhad Abasov said in a statement.
“For Millennial, it highlights Banio's unique position as a potential new, low-cost supply source of potash for the US agricultural sector and beyond.”
Millennial also highlighted recent coverage by the Financial Times referencing the US International Development Finance Corporation’s (DFC) commitment of US$3 million in project development funding for Millennial’s Banio project.
According to Millennial, the DFC’s funding is intended to support a feasibility study and de-risk the project, potentially paving the way for future US project financing.
Located on Gabon’s Atlantic coast, Banio offers potential shipping routes to the US, Brazil, and African markets.
The project’s preliminary economic assessment, released in April 2024, reported an after-tax net present value (NPV10%) of US$1.07 billion and an internal rate of return (IRR) of 32.6%, with estimated operating costs of US$61 per ton of granular potash.
Millennial said a revised mineral resource estimate is underway following recent drilling results showing potash-rich horizons up to 200 meters thick.
“With the US DFC funding in place, strong support from the Government of Gabon, and our project's direct shipping route to US ports, Banio is strategically aligned with America's food security and supply chain priorities,” Abasov said.
“In addition, Banio can potentially become the first African potash mine to supply potash to the African continent which currently imports all its potash.”
The DFC, a US government agency that finances private-sector development initiatives, has invested about US$13 billion across 300 projects in 26 Sub-Saharan African countries.