Morocco Mining Report Q2 2008

Office Cherifien de Phosphate (OCP) said in February that it was inviting foreign companies to invest in its Jorf Phosphate Hub at Jorf Lasfar outside Casablanca. The state owned company said it was planning US$2.5bn worth of investments in the next five years. OCP's aim was to attract foreign investment from companies interested in gaining access to low-cost phosphate products, along with tax and real estate benefits. OCP produces around 27.25mn tonnes of raw phosphate per annum, giving it a 47.2% share of world output of the mineral, a 47.2% share of world phosphoric acid output, and a 9.5% share of world fertiliser output.

The northern African Kingdom of Morocco with coasts on the Atlantic as well as the Mediterranean is home to over 90 mining companies producing 20 different mineral products. The mining sector is dominated by phosphates-accounting for 92% of mineral production-and is important to the economy.

Other metals and minerals, including lead, zinc, copper, iron, fluorine, silver, manganese, cobalt, antimony and salt are also beginning to grow in significance. Silver is produced in substantial amounts in the country. It is primarily sourced from the Imiter mine located in the Oriental Anti Atlas. Morocco also hosts cobalt at the Bou Azzer deposit, which is the world's only primary cobalt deposit.

The Office National des Hydrocarbures et des Mines (ONHYM) is the primary agency responsible for the exploration and promotion of national mineral resources. The other major state-owned organisation governing the mining industry is the Bureau de Recherches et de Participations Minires (BRPM), which is responsible for the development of most minerals found in Morocco. All mineral resources are the property of the state, which issues permits and licences for the exploration and exploitation of the resources. The current mining legislation in Morocco is based on the Mining Law (1951) and is enforced through executive orders and the Directorate of Mines. Under the law, a mining company may set up a tax-exempt reserve fund of up to 50% of the fiscal profits for exploration and development investment.

Driven by high international prices and rising external mineral demand, the Moroccan mining sector is rearing to go. Government policy has been to open up the mining sector to investments by both minor and major mining companies. Steps have been taken to privatise selected state-owned mining assets and launch reform programmes within the mining sector to boost its competitiveness. However, phosphate production remains a state monopoly, managed by state-owned Office Chrifien des Phosphates (OCP).

Morocco as a nation is considered both economically and politically stable; however, it still needs to bring about reforms in its tax structure and reduce trade bureaucracy in order to witness significant growth in its industries.

Industry Forecast Private companies dominate the exploitation of all mineral resources except phosphate. The government Office Cherifien de Phosphate (OCP) said in February that it was inviting foreign companies to invest in its Jorf Phosphate Hub at Jorf Lasfar outside Casablanca. The state owned company said it was planning US$2.5bn worth of investments in the next five years. OCP's aim was to attract foreign investment from companies interested in gaining access to low-cost phosphate products, along with tax and real estate benefits. OCP produces around 27.25mn tonnes of raw phosphate per annum, giving it a 47.2% share of world output of the mineral, a 47.2% share of world phosphoric acid output, and a 9.5% share of world fertiliser output.

The northern African Kingdom of Morocco with coasts on the Atlantic as well as the Mediterranean is home to over 90 mining companies producing 20 different mineral products. The mining sector is dominated by phosphates-accounting for 92% of mineral production-and is important to the economy.

Other metals and minerals, including lead, zinc, copper, iron, fluorine, silver, manganese, cobalt, antimony and salt are also beginning to grow in significance. Silver is produced in substantial amounts in the country. It is primarily sourced from the Imiter mine located in the Oriental Anti Atlas. Morocco also hosts cobalt at the Bou Azzer deposit, which is the world's only primary cobalt deposit.

The Office National des Hydrocarbures et des Mines (ONHYM) is the primary agency responsible for the exploration and promotion of national mineral resources. The other major state-owned organisation governing the mining industry is the Bureau de Recherches et de Participations Minires (BRPM), which is responsible for the development of most minerals found in Morocco. All mineral resources are the property of the state, which issues permits and licences for the exploration and exploitation of the resources. The current mining legislation in Morocco is based on the Mining Law (1951) and is enforced through executive orders and the Directorate of Mines. Under the law, a mining company may set up a tax-exempt reserve fund of up to 50% of the fiscal profits for exploration and development investment.

Driven by high international prices and rising external mineral demand, the Moroccan mining sector is rearing to go. Government policy has been to open up the mining sector to investments by both minor and major mining companies. Steps have been taken to privatise selected state-owned mining assets and launch reform programmes within the mining sector to boost its competitiveness. However, phosphate production remains a state monopoly, managed by state-owned Office Chrifien des Phosphates (OCP).

Morocco as a nation is considered both economically and politically stable; however, it still needs to bring about reforms in its tax structure and reduce trade bureaucracy in order to witness significant growth in its industries.

Industry Forecast Private companies dominate the exploitation of all mineral resources except phosphate. The government