WEST VANCOUVER, BC / ACCESSWIRE / May 19, 2023 / The global potash industry is facing a significant challenge due to the ongoing Russia-Ukraine war. Russia and Belarus, which together account for 35% of global potash production, are heavily impacted by the conflict. The sanctions imposed on Belarus and Russia have already impacted potash flows to international markets, and the extent of the disruption means that potash supply worldwide is highly uncertain.
The Southern Hemisphere is particularly vulnerable to these challenges, as the region heavily relies on potash imports from Russia and Belarus. Brazil, China, India and Indonesia are some of the largest importers of potash from these countries, and the heavy reliance on a small number of suppliers creates significant risks to food security and price stability. Due to the conflict, Brazil faced a potash deficit in 2022. Brazil is the fourth largest agriculture producer in the world and the country exports $160 billion in food products annually.
A more regionally conducive supplier could provide significant benefits to these countries, with reduced transport costs and more stable supply chains. The current challenges faced by the potash industry highlight the need for greater diversification of supply chains. While Canada could compensate for some supply disruption in the short term, developing regional suppliers could provide a more stable and secure supply of potash, reducing the risks and costs associated with reliance on a few key suppliers.
A company called Millennial Potash (OTCMKTS:MLPNF) has recently acquired the Banio Potash Project in Gabon, which could be big news for the potash industry. The Gabon coastline is rich in potash deposits, presenting a possibly unique opportunity for the global potash supply chain.
Gabon is estimated to have over 2 billion tons of potassium salts, making it one of the largest potash basins in the world. The Banio Project covers 1,238 km2 and is located in the southwest corner of Gabon. Due to its strategic location on the Atlantic coast of Africa, Gabon has a significant cost advantage due to its proximity to major potash markets in the Southern Hemisphere.
The Banio Potash Project is strategically located in the well-known potash-bearing basin with an exploration camp, drill rigs and a drill core on site. Millennial Potash reports that its management team and board of directors are well-experienced in potash and other large-scale mining projects - with the Millennial team having built and sold multiple mining companies, including Potash One, Allana Potash, and Millennial Lithium.
The Banio Potash Project could become a key supplier for countries in the Southern Hemisphere. With no end in sight for the Russian-Ukraine war and an overall need for suppliers that can reduce transportation costs and time, the Gabon project is ideal for Brazil and countries in Asia.
Featured photo by Kevin Schmid on Unsplash.
Contact:
Michael Harris
ir@millennialpotash.com
SOURCE: Millennial Potash Corp.
View source version on accesswire.com:https://www.accesswire.com/756040/The-Russia-Ukraine-War-Is-Putting-Significant-Constraints-On-Global-Potash-Exports-Millennial-Potashs-OTCMKTSMLPNF-New-Project-Helps-Diversify-The-Supply-Chain
