Countries covered: Morocco
Phosphates Lead Steady Growth In Output Morocco’s mining sector is set to enjoy average real growth of 2.74% year-on-year (y-o-y) over BMI’s forecast period from 2011-2015. The mining industry is forecast to reach a total value of US$1.43bn by 2015, an increase of 18% on its 2010 valuation.
Phosphates will continue to dominate mineral output over this period following recent upward revisions made to the country’s deposits, carried out by the International Fertilizer Development Centre, coupled with a steady increase in state investment in mining and freight transport facilities over the past few years. With no final full-year production data yet available from the Moroccan government, we estimate Moroccan phosphates output at 19.96mn tonnes in 2010, an increase of 9% from 2009. We forecast phosphates rock extraction to reach 28.32mn tonnes a year by 2015, marking an average annual growth rate of 8.4% over the forecast period.
There is also growing international interest in developing a number of mining sub-sectors across the country. Among the materials attracting significant interest are tin, gold, diamonds and uranium. Much of the exploration work is being carried out by foreign firms. Increasing demand for tin, in particular, has drawn miners to the Achmmach deposit in El Hajeb province where pre-feasibility work is being led by Australian-based Kasbah Resources. Kasbah has a target of producing 4,000-6,000 tonnes of tin per year when operations begin. If this goes well, the company hopes to be producing tin in concentrate by 2013. In October 2010, Kasbah successfully raised AUD24mn via a share placement to fund its ongoing works at Achmmach and the company recently appointed a new Chief Operating Officer with the explicit brief of developing a feasibility study for the project.
Gold is another sub-sector with strong growth potential with prospecting currently being led by Canadian miner Maya Gold & Silver, which is developing the Amizmiz project in Marrakech province. Recent measurements have revealed deposits of 341,073oz of gold at the pit with extraction scheduled to begin from Q311. It was reported in February 2011 that the company is undertaking due diligence in preparation for the possible acquisition of five gold, silver and polymetallic projects in Morocco. Further information on both Kasbah Resources and Maya Gold & Silver is available in the Company Monitor section towards the end of this report.
Business Environment
Morocco has a well-developed mining industry. However, the majority of the industry remains under state control, which acts as a major limitation on potential opportunities for foreign investors. In addition, an inefficient tax regime and under-developed labour infrastructure also act as constraints on growth. Given these constraints, Morocco currently ranks last in our Business Environment Ratings for the African mining industry, with a score of 37 out of 100.
On the positive side, the country’s energy and transport infrastructure is improving, following a series of recent investments. Furthermore, the state provides mining investors with a safe operating environment alongside security of investment. Also there are a number of incentives for mining companies. These include a 50% reduction in tax for miners that export their products. There are also exemptions on customs duties and some tax exemptions for imported equipment.
Key Players
Mining activity in Morocco is dominated by state-run Office Cherifien de Phosphate (OCP) and other state-run concerns such as ResidInvest and Managem. Managem subsidiary Société Metallurgique d’Imiter (SMI) operates the Imiter silver mine, the ninth-largest silver mine in the world. However, there is also a burgeoning private sector with foreign players leading the way in exploration for tin, gold, diamonds and other smaller mineral groups. The most important operators include Kasbah Resources, Maya Gold & Silver and Metalex Ventures.
More General Mining Reports by Business Monitor International
Poland Mining Report Q3 2011 by Business Monitor International
The outlook for Poland’s mining sector looks likely to change fundamentally in 2011 due to the government’s privatisation drive. Poland is eager to sell the …
Venezuela Mining Report 2011 by Business Monitor International
The administration of President Hugo Chávez continues to nationalise companies working across the mining sector. Consequently, the operating environment for privately-owned domestic or international companies …
Tanzania Mining Report Q3 2011 by Business Monitor International
Unrest Disrupts Output At African Barrick Gold Property In May 2011, hundreds of people attacked African Barrick Gold’s (ABG) North Mara gold mine in Tanzania, …
Mozambique Mining Report Q3 2011 by Business Monitor International
In Q311 we are sticking to our mid-term forecasts for Mozambique’s mining sector as a number of major projects remain on course to enter the …
South Africa Mining Report Q3 2011 by Business Monitor International
We forecast that South Africa’s mining sector will experience moderate growth over the forecast period to 2015, driven primarily by growth in coal production. We …
More Morocco General Mining Reports
Morocco Mining Report Q1 2011 by Business Monitor International
Big Increase In Moroccan Phosphate Reserve In September 2010, Bloomberg reported on the International Fertilizer Development Centre’s most recent update on global phosphates resources. The …
Morocco Mining Report Q4 2010 by Business Monitor International
ONA Plans May Shake Up Mining Sector The Moroccan mining sector could be set for a boost in 2011 following the news that the …
Morocco Mining Report Q3 2010 by Business Monitor International
ONA Plans May Shake Up Mining Sector The Moroccan mining sector could be set for a boost following news in March 2010 that the country’s …
Morocco Mining Report Q2 2010 by Business Monitor International
OCP Looking To Expand The state-owned Office Cherifien de Phosphate (OCP) is taking advantage of the recovery in phosphate prices seen over recent months by …
Morocco Mining Report Q1 2010 by Business Monitor International
Country Overview The Kingdom of Morocco is home to over 90 mining companies producing 20 different mineral products. The economically vital mining sector is dominated …
http://www.marketresearch.com/Business-Monitor-International-v304/Morocco-Mining-Q3-6454241/