With vast geological potential, direct ocean access and growing infrastructure investment, Gabon is emerging as one of the industry’s most compelling new jurisdictions
By Farhad Abasov
For decades, the global potash sector has been shaped by a small number of producing nations led by Canada, Russia, and Belarus whose resources play a critical role in supporting agricultural production worldwide.
As demand for potash keeps increasing and emphasis from various governments grows toward developing a more resilient supply chain, a new source of supply coming from regions that are stable and are outside of major conflict zones is needed. Of all the emerging jurisdictions interested in developing its fertilizer industry, Gabon offers a unique synergy of promising geological prospect, strategic location, and infrastructure development.
Positioned along the Atlantic coast of Central Africa, Gabon is an emerging player on the global potash scene. Gabon possesses many of the characteristics that industry insiders look for when evaluating the next generation of potash-producing regions.
As part of the promotion of Gabon’s mining sector policy, the head of state, Brice Clotaire Oligui Nguema, has made this sector a strategic pillar of the country’s economic diversification.
“It is important to highlight that Gabon is endowed with significant mineral resources, including potash. Potash represents a key resource in a global context marked by strong demand for agricultural inputs and the need to secure supply chains,” says Sosthène Nguema Nguema, Gabon’s Minister of Mines and Geological Resources.
The geological opportunity
Gabon represents one of the most prospective but undeveloped potash basins on earth. While exploration is relatively limited compared to developed regions, data to-date indicate enormous potential for large-scale potash mining.
In a recent Forbes Africa article examining the country’s emerging potash sector, Agricultural Business Chamber of South Africa economist Thapelo Machaba observed that “Gabon’s strength isn’t just what’s been discovered. It’s how little of the land has actually been explored”. She further suggested that national resources could ultimately exceed 10 billion tonnes, highlighting the significant geological potential that remains to be evaluated.
For investors and industry participants, geology alone is never enough. Equally important is the ability to efficiently move product to the right markets. This is where Gabon possesses another important advantage.
Atlantic access and global markets
Unlike many inland potash projects around the world, Gabon’s potash resources are located directly on the Atlantic coast. Geography may ultimately prove to be one of the country’s greatest strengths.
As Forbes Africa noted, “sail directly west from Gabon’s coastline, and you’ll end up in Brazil”.
With global imports estimated at around 13 million tonnes annually, Brazil is the largest importer of potash. The opportunity to market to one of the largest agricultural markets in the world, as well as the United States – another large potash consuming nation – through a direct shipping route across the Atlantic, provides a natural competitive advantage for emerging potash jurisdictions that very few can match.
Today, shipping routes are more relevant than ever. The recent global supply chain disruptions have once again alerted the governments and corporations that supply chains can be easily disrupted by geopolitics, regional conflicts, and transportation choke points. Once more, Gabon holds an exceptional position because shipping between Gabon and other markets are not subject to major maritime choke points since there are no canals, straits, or foreign territory crossing your route. It is no accident that U.S. International Development Corporation has backed the potash developer in Gabon as the U.S. government has recently added potash to its critical minerals list.
Here again, Gabon offers a distinctive advantage as shipments from Gabon to key markets benefit from the absence of major maritime chokepoints, with no impeding canals, straits, or foreign borders. As supply chain resiliency becomes an ever-greater priority for the global economy, the ability to directly access major markets for agriculture is worth more than just transportation costs.
Building the infrastructure for growth
Furthermore, another development which lends itself to Gabon’s rise is its expansion of infrastructure. From one side of the country to the other, port, energy, and transportation infrastructure is being built that can accommodate future industrial development. While mining jurisdictions thrive on resources, and resources need infrastructure to be brought to market.
Government support also plays an important role. Gabon has made a real commitment to promoting investment and economic diversification over the past few years. One important aspect of its diversification plans is the development of its mining industry. This area of Gabon’s economy is attracting a great deal of attention from foreign investors and resource companies.
“Gabon is committed to supporting serious and responsible mining investors who are engaged for the long term, while respecting environmental standards and sustainable development principles,” says Ghislain Moandza Mboma, director general of Gabon’s National Investment Promotion Agency (ANPI), a government agency charged with attracting foreign investment, facilitating strategic projects, and advancing the country’s economic development agenda.
Gabon offers something increasingly valuable in today’s resource sector: a combination of geological potential and strategic positioning. Many countries possess one or the other. Few possess both.
With the world looking to future supplies of potash, not only size and grade of resources will be key, but also market access, infrastructure, government backing, and logistics. Those nations that can demonstrate a favourable mix will be the most attractive for investment and long-term development.
A strategic jurisdiction for the future
“Gabon is committed to supporting long-term mining investors who operate in compliance with environmental standards and sustainable development principles,” says Minister Nguema Nguema. “Companies such as Millennial Potash are fully aligned with this vision, contributing to strengthening Gabon’s attractiveness as a leading mining destination and positioning the country as a future major player in Africa’s mining sector.”
Global potash supply has been dominated by a few major producers for the last several decades and it will likely continue that way for the foreseeable future. Nevertheless, the industry will need new sources of supply to accommodate world agricultural growth and meet increasing global demand for potash.
Gabon has all the ingredients required for significant growth in its potash potential including potentially world-class geology, access to Atlantic transport infrastructure, and proximity to important agricultural markets. While there is work to do, the components of a major new potash development seem to be falling into place for Gabon.
Farhad Abasov is chairman and director of Millennial Potash, advancing the Banio Potash Project in Gabon. He is a veteran mining executive who has built and sold multiple resource companies including potash and lithium development companies.
