• Final feasibility study targets 800,000 tons a year of muriate of potash.
• Banio hosts more than 6 billion tons of potash resources, according to estimates.
• Project supports Gabon’s strategy to diversify mining revenues beyond manganese.

Canadian mining company Millennial Potash Corp said on January 13 it has launched a definitive feasibility study for its Banio potash project in Gabon. The move further positions potash, a key input in fertilizer production, as one of the resources on which Libreville could build efforts to diversify its mining revenues.

To carry out the work, the company has appointed ERCOSPLAN, a German consulting firm specializing in potash projects. The study will be based on a development scenario targeting annual production of 800,000 tons of muriate of potash. The feasibility study is expected to be completed in the second half of 2026, alongside the environmental and social impact assessment launched last year. The results will be incorporated into the documentation required to apply for a mining exploitation permit from Gabonese authorities.

An attractive resource base

Funding for the feasibility study is supported by a $3 million commitment from the U.S. International Development Finance Corporation. However, the level of financing required to build the mine, as well as the details of Millennial Potash’s capital-raising strategy, will only become clear once the study is completed. The scale of the resource could nonetheless attract multiple lenders.

According to an estimate published in December 2025, the Banio project hosts 2.45 billion tons of measured and indicated mineral resources grading 16.6% potassium chloride. This is complemented by inferred resources of 3.55 billion tons with a KCl grade of 15.6%.

By comparison, a 2022 feasibility study for the Kola potash deposit in the Republic of the Congo, which contains 508 million tons of measured and indicated resources grading 35.4% KCl, showed that a mine could deliver 2.2 million tons of muriate of potash a year over a 23-year life. The study projected average annual EBITDA of $733 million over that period.

On that basis, Kola’s operator, Kore Potash, has already attracted interest from several investors, including German-Swiss financial services firm OWI-RAMS, which in June 2025 signed a non-binding agreement to mobilize $2.2 billion to fully cover construction costs for the mine. In November, two other parties described as “potash sector players” submitted takeover offers for Kore Potash.

Raising mining’s contribution to the economy

While awaiting clearer insight into Banio’s economic potential, Gabonese authorities can already factor the project into their strategy to increase mining revenues. The sector currently contributes about 6% of GDP and remains heavily dependent on manganese production. Libreville aims to raise this contribution to at least 10%, relying both on higher manganese output and local processing, as well as the development of other resources.

In this context, iron ore and gold are already identified as priority minerals. Gabon hosts more than 4 billion tons of iron ore resources, notably at the Baniaka and Belinga deposits, whose development has accelerated in recent years. The main challenge for the government will now be to convert investor interest into concrete commitments on the ground, backed by the financing needed to build the mines.

Maintaining an attractive business climate and supportive commodity market conditions, whether for manganese, iron, or potash, will be key prerequisites.

Emiliano Tossou