Millennial Potash’s strategic objective: African potash for African agriculture gets backing from Gabonese President Brice Oligui Nguema

Oct 20, 2024 | potash news

Millennial Potash Corp. (TSX.V: MLP, OTCQB: MLPNF, FSE: X0D) has reached a significant milestone in its growth journey by meeting with Gabonese President Brice Oligui Nguema during a site visit to the Banio Potash license area. The visit follows a strong maiden resource announcement and robust preliminary economic assessment that were published earlier this year. This meeting underscored the Gabonese government’s support for the project and highlighted the Banio Potash Project’s strategic importance to both Millennial Potash and Gabon’s economic future.

A pivotal site visit

The site visit to the Banio Potash license area, located near the towns of Mayumba and Ndindi, was a landmark event for Millennial Potash and the region. During the visit, President Nguema expressed dedicated support for the project, emphasizing how it aligns with Gabon’s broader economic and infrastructural goals.

Millennial Potash, through its subsidiary Mayumba Potasse SARL, presented the president with an overview of the company’s progress, including key findings from its recent preliminary economic assessment (PEA). A memorable moment occurred when President Nguema received a section of potash-rich drill core from the Banio site, a symbol of the project’s potential. His endorsement of the project was clear, and he pledged the government’s full cooperation in securing necessary permits and ensuring that local community’s benefit.

Leadership, proven track record, and strong resource base

Millennial Potash’s Banio Potash Project is well-positioned to capitalize on the growing global demand for potash fertilizers, essential for food production. As food security becomes a pressing global concern, demand for potash continues to rise. The Banio Potash Project has the potential to make a significant contribution to addressing these challenges, especially in Africa. The location of Millennial’s potash project is critical to meeting the growing demand for potash in Africa as the continent continues importing all its potash.

Millennial Potash’s leadership team, comprised of experienced industry veterans such as Farhad Abasov, Graham Harris, Paul Matysek, Peter Maclean, and Jason Wilkinson has a history of delivering value through successful resource development projects. Their expertise has been instrumental in the development and sale of notable mining ventures, including the $491 million sale of Millennial Lithium to Lithium Americas, the $170 million sale of Allana Potash to Israel Chemicals, and the $434 million sale of Potash One to Kali + Salz. With their collective accomplishments, the team has established a reputation for advancing critical resource projects while consistently generating shareholder value. The strong alignment of interests is further demonstrated by the fact that the board and management own 30 per cent of the company’s shares.

Under this leadership, the Banio Potash Project has positioned itself as a major player in the global potash market. The project boasts an impressive mineral resource estimate, with indicated and inferred mineral resources exceeding 1.8 billion tonnes of potassium chloride (KCl). Notably, this estimate covers only five per cent of the company’s 1,200-square-kilometre project area, signaling vast potential for future expansion.

The PEA highlights the project’s economic viability, with an after-tax net present value (NPV) of $1.07 billion, calculated at a 10 per cent discount rate, and an after-tax internal rate of return (IRR) of 32.6 per cent. Additionally, the project benefits from exceptionally low operating costs, with granular Muriate of Potash (gMOP) production costs as low as $61 per tonne, positioning Banio as one of the most economically attractive potash deposits in the world. These compelling financial metrics make Millennial Potash an attractive investment opportunity for those seeking exposure to the high-demand potash sector.

Government support for infrastructure and community development

A key focus of President Nguema’s remarks was on improving the region’s infrastructure, critical to the success of the Banio Potash Project. The president has committed government support for key infrastructure initiatives in Mayumba, including:

  • Power station construction: Ongoing efforts to enhance electricity production will support both the project’s industrial needs and the local community.
  • Deep-water port development: The establishment of a deep-water port in Mayumba will streamline the export of potash, providing a major boost to the project’s logistics.
  • Road improvements: Upgrading the Mayumba-Ndindi road will improve access to the potash mining area, facilitating the transport of goods and materials while enhancing regional connectivity.
  • Social infrastructure: In addition to industrial support, the government is investing in schools, a new university, and a modern hospital to benefit the local population.

These initiatives demonstrate Gabon’s commitment to fostering both industrial growth and improving the quality of life for local residents. This comprehensive support positions Gabon as an emerging leader in the global potash market while aligning with Millennial Potash’s strategic goals.

A presidential endorsement for a bright future

The endorsement from President Nguema is a key vote of confidence for Millennial Potash. His backing not only accelerates the project’s timeline but also strengthens investor confidence. With infrastructure development a top priority for the Gabonese government, the Banio Potash Project has the potential to become a major economic driver both locally and globally.

As President Nguema continues to engage with key industrial projects across Gabon, including the Banio Potash Project, it’s clear that resource development is a cornerstone of his administration’s economic strategy. By partnering with private enterprises like Millennial Potash, the Gabonese government is paving the way for sustainable growth that benefits both investors and the local communities.

Millennial Potash’s commitment to sustainability and value creation

Millennial Potash is dedicated to ensuring that the Banio Potash Project not only meets production goals but also contributes to sustainable development in the region. In addition to utilizing environmentally friendly solution mining technology, the company is committed to community engagement, local employment, and environmental stewardship, which are central to its operations in Gabon.

Aligned with the Gabonese government’s vision, Millennial Potash is focused on creating long-term value for its shareholders while fostering regional development. With ongoing government support, infrastructure enhancements, and a clear development roadmap, the Banio Potash Project is on track to become a cornerstone of Gabon’s resource sector.

Backed by a solid resource base and led by a seasoned management team, Millennial Potash has a proven track record of delivering shareholder value. With the successful completion of its PEA and plans to expand its resource base, the company is now gearing up for the next stage of development: a definitive feasibility study (DFS).