April 13, 2010 -
PRLog -- The 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 economically vital mining sector is dominated by phosphates, which account for 92% of mineral production. 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 and 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. Meanwhile, a wave of new investment should result in significant improvements to Morocco's physical infrastructure over the coming years which will benefit the mining sector. The new government, which came into power in October 2007, has announced plans for a high-speed rail link connecting the northern city of Tangier with the commercial capital Casablanca. The MAD20bn project should be completed by 2013, with the possibility of an extension to Marrakech by 2015. Meanwhile, there are plans to develop the deepwater port located on the south bank of the Strait of Gibraltar However, the falling prices of commodities are having a negative impact on the Moroccan mining sector. In January 2009, Reuters reported that Managem - a subsidiary of industrial conglomerate ONA - was expecting a net loss for 2008. According to the company, it will lose approximately MAD600mn (US$69.3mn) for the year. The primary cause has been the steep decline in prices for Cobalt. Prices for the metal fell by approximately three quarters in 2008, causing Managem to lose MAD350mn (US$40.6mn). Meanwhile, costs of raw materials such as sulphuric acid also hit company profits. As a result of the performance, the company is looking to cut production costs at all of its businesses in 2009, which is estimated to bring in an additional MAD200mn (US$23.3mn). 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 Minières (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. Global overview On page 7 of this report, BMI examines the phenomenon of increased Chinese activity in the global mining sector and what this means for the industry moving forward. Industry Forecast Morocco's zinc mining output is expected to decline in the coming years. Lead and silver outputs are also expected to go down. However, there is a strong opportunity for tin, with demand coming from the expanding electronics industry. The sector has also been helped by a ban on lead solder by the US and EU, increasing demand for tin solder. Also, current global production levels of tin are declining, while there are few new developments of any scale. Morocco with its Achmmach site has some of the largest untapped reserves of tin in the world. Despite the declining prices for commodities and falling output on a local level, BMI expects the Moroccan mining sector to grow at a slow but solid pace over the forecast period. Between 2008 and 2013 we expect the compound annual growth rate (CAGR) to stand at 2.49% in local currency terms, although we forecast a slight decline in US dollar terms. The industry value is expected to be worth US$1.10bn in 2013, contributing around 1.1% to the nation's GDP.
For more information or to purchase this report, go to:
-
http://www.fastmr.com/prod/56789_morocco_mining_report_q2...About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at
http://www.fastmr.com/catalog/publishers.aspx?pubid=1010About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at
http://www.fastmr.com or call us at 1.800.844.8156.
Account Phone Number