Mining and Natural Resources

Morocco's Mining Sector Overview

Mining plays a vital role in Morocco's economy, dominated by phosphate extraction but increasingly diversified into other minerals. Morocco holds approximately 50 billion metric tons in phosphate reserves—roughly 70% of global reserves—making it the world's second-largest phosphate producer and largest exporter. The state-owned OCP Group (Office Chérifien des Phosphates) operates the world's most extensive phosphate mining and processing operations. Beyond phosphates, Morocco produces minerals including silver, copper, zinc, lead, fluorite, barite, and manganese, supporting domestic industries and export markets.

Phosphate Mining & OCP Group

Production Levels

Morocco produced 30 million metric tons of phosphate rock in 2024, with production capacity expanding toward a target of 60 million metric tons per year by 2027 through ongoing capacity expansion projects. OCP operates several major mining complexes including Khouribga (the world's largest open-pit phosphate mine), Benguerir, Youssoufia, and Boucraâ-Laayoune. These facilities employ modern mining techniques including dragline excavators, truck-and-shovel operations, slurry pipeline transport systems, and rail networks connecting mines to processing plants and ports.

Financial Performance

OCP Group recorded consolidated revenues of 52.16 billion dirhams (USD 5.7 billion) in the first six months of 2025, marking a 21% increase compared to 43.24 billion dirhams in the same period of 2024. Full-year 2024 revenues reached 96.9 billion dirhams (USD 9.8 billion). Phosphate exports totaled 38.56 billion dirhams ($4 billion) in the first half of 2024, representing 7.5% growth. These revenues support Morocco's trade balance, government finances, and economic development.

Export Markets

OCP exports phosphate rock and derivatives globally. South America remained the leading export destination accounting for 26% of revenue, followed by Europe (21%), India (19%), and Africa (18%). Other significant markets include Middle East, North America, and Southeast Asia. Phosphate rock is exported to fertilizer producers worldwide, while OCP's integrated facilities produce phosphoric acid, fertilizers (DAP, MAP, NPK), and specialty phosphate products for industrial applications.

Phosphate Value Chain Integration

OCP has strategically integrated vertically to capture more value from phosphates. The company operates mining complexes extracting phosphate ore, beneficiation plants upgrading phosphate rock quality, chemical processing facilities producing phosphoric acid through wet acid process, fertilizer manufacturing plants producing various grades and formulations, and port facilities at Jorf Lasfar, Safi, and Casablanca for efficient export. This integration creates jobs, develops technical expertise, and positions Morocco as a complete phosphate solution provider rather than just a raw material supplier.

Sustainability & Innovation

OCP is investing heavily in sustainable mining practices and technological innovation including renewable energy powering mining and processing operations (solar farms, wind installations), water conservation through seawater desalination for phosphoric acid production (reducing freshwater use), circular economy initiatives recycling water and byproducts, precision agriculture services helping farmers optimize fertilizer application, digital transformation with IoT sensors, automation, and data analytics, and research and development in crop nutrition, phosphate chemistry, and environmental protection. These initiatives reduce environmental impact while improving operational efficiency.

Other Mineral Resources

Base Metals

Morocco produces base metals through several mining operations. Silver production comes from Imiter mine operated by Managem (subsidiary of SNI/Al Mada), making Morocco one of Africa's top silver producers. Copper and zinc are extracted from mines in the eastern regions and processed at local smelters. Lead-zinc deposits exist in multiple locations with varying grades and production levels. These metals serve domestic manufacturing (construction, electrical, automotive) and export markets.

Industrial Minerals

Morocco mines industrial minerals including fluorite (fluorspar) for chemical and metallurgical industries, barite for oil and gas drilling fluids, salt from coastal and inland deposits, gypsum for cement and plaster production, and clays for ceramics and construction materials. Industrial minerals support Morocco's domestic industries and contribute to exports.

Coal & Iron Ore

Morocco produces limited coal and previously imported most energy needs. Iron ore deposits exist but are not extensively exploited currently, with Morocco importing iron ore and scrap for steel production. Future exploration and feasibility studies may unlock additional mineral resources.

Mining Regulations & Investment Framework

Morocco's mining law provides framework for exploration and exploitation licenses, environmental protection and safety standards, royalty and taxation structures, and foreign investment participation. The Ministry of Energy, Mines, and Environment oversees the sector, granting permits and monitoring compliance. The Office National des Hydrocarbures et des Mines (ONHYM) manages state mining assets and conducts geological surveys. Private sector participation is encouraged through joint ventures, concessions, and partnerships with local companies or OCP.

Employment & Economic Impact

The mining sector employs tens of thousands directly (miners, engineers, technicians, administrative staff) and supports hundreds of thousands indirectly through suppliers, contractors, transport, and services. Phosphate mining regions like Khouribga, Benguerir, and Youssoufia depend heavily on OCP operations, which provide jobs, infrastructure, schools, hospitals, and community development programs. Mining contributes significantly to GDP, export earnings, tax revenues, and regional economic development.

Export Infrastructure

Morocco has developed world-class export infrastructure for phosphates including Jorf Lasfar Port (dedicated phosphate and phosphoric acid terminal with storage, blending, and loading facilities), Safi Port (phosphate exports and chemical processing), Casablanca Port (general cargo including phosphate products), and rail networks connecting mines to processing plants and ports. This infrastructure ensures efficient, cost-effective delivery to global customers.

Geopolitical Importance

Morocco's phosphate dominance has significant geopolitical implications. As global population grows and agricultural productivity must increase, phosphate fertilizers become increasingly critical for food security. Morocco's control over 70% of reserves provides strategic leverage in global agricultural commodity markets. OCP's investments in Africa (fertilizer blending plants, distribution networks, agricultural services) strengthen Morocco's diplomatic and economic relationships across the continent. Phosphate revenues support Morocco's economic development, infrastructure investments, and social programs.

Challenges & Future Directions

The sector faces challenges including phosphate price volatility driven by global commodity markets, agricultural demand cycles, and geopolitical factors, environmental concerns regarding water use, marine ecology near ports, and land rehabilitation after mining, energy costs for processing phosphate rock into phosphoric acid and fertilizers, and competition from other phosphate producers (China, Russia, Jordan) and alternative fertilizer technologies. OCP is addressing these through diversification into specialty fertilizers and customized nutrient solutions, vertical integration capturing more value, sustainability investments reducing environmental footprint, market development in high-growth regions (Africa, Asia, Latin America), and innovation in precision agriculture and phosphate applications. Morocco aims to maintain phosphate leadership while developing other mineral sectors and ensuring sustainable, responsible mining practices that benefit communities and protect the environment.