• Millenial Potash secured $3M from the U.S. DFC to fund a feasibility study for its Banio potash project in Gabon

• The study will assess the technical and economic viability of a deposit estimated at 185 million inferred resources

• Project development also requires an environmental assessment before a mining license can be issued
  

Gabon's Millennial Potash announced on Wednesday, July 9, that it secured a $3 million financing commitment from the U.S. International Development Finance Corporation (DFC) for its Banio potash project. The company stated the funds will primarily launch a feasibility study, a crucial step in the mining development process.

The feasibility study is expected to begin in the coming months, though no specific timeline or details about its execution have been disclosed. The study will aim to define the technical and economic parameters of the deposit to assess the project's commercial viability.

If successful, the study could validate the initial findings of a preliminary economic assessment (PEA) published in 2024. That earlier report, which remains too speculative to confirm project feasibility, was based on approximately 185 million inferred mineral resources at Banio. It outlined a potential for annual production of 800,000 metric tons of muriate of potash (MOP) over an initial 25-year mine life, with initial capital costs estimated at $480 million.

While the feasibility study represents an important milestone, it is only one step toward developing Banio. Millennial will also need to complete an Environmental and Social Impact Assessment (ESIA), a requirement for obtaining a mining license from Gabonese authorities.

Aurel Sèdjro Houenou