Millennial Potash (TSX-V: MLP) plans to begin building its US-backed Banio potash project in Gabon by late 2027 or early 2028, potentially at a larger scale than initially planned as interest from prospective buyers and financiers grows.
The Canadian developer is targeting financial close by August or September 2027 for the project on Gabon’s southern coast, chairman and CEO Farhad Abasov told Reuters on Tuesday. Initial capital costs are estimated at $480 million, with annual production originally pegged at 800,000 tonnes.
“We may look at actually starting with a larger scale primarily because we have seen quite a bit of interest from potential off-takers and financiers,” Abasov said. “Instead of 800,000 tons, we may start with 1 million or 1.2 million tons of production per year.”
Banio’s development could help diversify global potash supplies, which are concentrated in Canada, Russia and Belarus. Major agricultural economies, including Brazil and the US, rely heavily on imports of the fertilizer ingredient, creating an opportunity for new producers to serve markets seeking alternative sources.
Financing and permits
Millennial is working to secure a financing package with the US International Development Finance Corp. (DFC) and other parties to support construction. The DFC has already committed $3 million towards the project’s definitive feasibility study (DFS).
Abasov told MINING.COM earlier this month that the company expects to complete the study by the end of 2026.
Millennial must also convert its exploration licence into a mining permit before construction can proceed. The company expects to begin that process in the first quarter of 2027, with approval potentially taking three to six months.
The proposed timetable remains dependent on securing financing and regulatory approvals, both critical steps before the company can commit to construction.
“It takes roughly 18 to 24 months from the time you start construction to the time you actually start producing,” Abasov said.
That schedule would put initial production around 2029 or 2030, depending on when construction begins. The operation could then reach its targeted annual output within six months, according to Abasov.
Regional demand
Potential customers include groups in the US, Brazil, Asia and Africa, although Abasov did not identify specific companies or disclose details of prospective offtake agreements.
Africa consumes roughly 2 million tonnes of potash annually, according to Abasov, offering Banio a sizeable regional market alongside potential export opportunities.
At its original planned capacity, the mine could produce the equivalent of about 40% of the continent’s current annual consumption. An expansion to 1.2 million tonnes would lift that figure to roughly 60%, although actual sales would depend on market demand and distribution arrangements.
The prospect of a larger initial operation could strengthen Banio’s commercial appeal, but would also require Millennial to assess whether higher production justifies additional upfront investment before finalizing its development plans.