Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF) chairman Farhad Abasov talked with Proactive about the global potash supply landscape and the company's progress on its Gabon-based project.
Abasov outlined the challenges faced by countries heavily reliant on imported potash. He noted that the United States imports around 97% of its potash, mainly from Canada and, to a lesser extent, Russia and other regions.
He emphasized that Millennial Potash’s project in Gabon is uniquely located on the Atlantic coast, offering logistical and economic advantages. Abasov explained that this positions the company well to potentially supply the U.S., Brazil, and African markets, given its low-cost structure and port access.
He also commented on global fertilizer demand and the challenges facing large-scale projects, referencing BHP's budget overruns. According to Abasov, Millennial Potash stands apart due to its use of solution mining, which reduces environmental impact.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Farhad Abasov. He is the chairman of Millennial Potash. And Farhad, good to see you again. How are you?
Farhad Abasov: Good, good. Thank you. Great to see you.
Yeah, I know the company has some news out today, and we'll talk about it in just a second. But potash was in the news very much yesterday—more so for fertilizer—because of what U.S. President Donald Trump had to say when he was meeting with some U.S. farmers. Maybe you can explain a bit about the market and how it works?
Absolutely. President Trump mentioned potential sanctions or tariffs on Canadian fertilizers, which ties into broader discussions about food security and inflation. Almost all major countries import most of their potash. In the U.S., 97% of potash used is imported—mainly from Canada but also from Russia and others. Last year, the U.S. even imported 11 million tons from Russia.
This highlights how dependent countries are on a few suppliers. For example, Brazil imports over 95%, India 100%, and China about 75%. So diversification of supply is critical.
So it’s not just about tariffs, but also about ensuring global supply?
Exactly. Only a few countries produce potash, and Canada, Russia, and Belarus make up around 70–75% of global supply. The U.S. produces very little domestically, less than 5% of its needs. There’s only one producer, and they are barely breaking even. Their resource base is far smaller than what we have in Gabon. So domestic replacement is not realistic. That’s where our project on the Atlantic coast could step in—with low-cost logistics, it could supply the U.S., Brazil, and Africa.
Is there room for everyone to succeed in this space?
There are several development-stage fertilizer projects, but many won’t make it due to high CapEx. Even large companies like BHP are struggling—BHP's Saskatchewan project is over budget and delayed. Location and economics matter. Our Gabon project has clear advantages.
It’s one of the few potash projects globally that is located on the coast. That reduces costs and increases feasibility. The world will need more potash, and jurisdictions like Gabon are critical. We already have U.S. government support—DFC signed a strategic partnership agreement with us. That gives us momentum to secure financing soon.
You’ve also just announced an environmental and social impact assessment?
Yes. We increased our resource in the last update, and now we’ve started the ESIA. It’s the first step toward full development. We'll study hydrology, soil, and water quality, aiming to minimize environmental impact. We comply with IFC Performance Standards—these are gold-standard environmental guidelines.
Also, we’re using solution mining, which by design has lower environmental impact. The ESIA will be completed in the next few months and will form part of our mining application.
Quotes have been lightly edited for style and clarity