BMI's Executive Summary

[TOP]

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 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.

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 Chérifien 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 is now considering establishment of foreign joint ventures in this sphere, indicating the willingness of the country to further open up its mining sector. In its newly released Morocco Mining Report Q108, BMI forecasts that the Moroccan mining industry will register an average growth of 1.48% over 2008-2012 and be valued at over US$2bn by 2012.

Contents

[TOP]

Executive Summary

Chapter 1 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 2 - Project And Property Updates

Metals

Precious Stones

Table: Mines In Morocco

Chapter 3 - Business Environment

Introduction

Regional Overview

Table: Regional Business Environmet Overview

Morocco: Business Environment Ranking

Table: Morocco Business Environment

Chapter 4 - Political Environment

Domestic Political Outlook

Table: Parliamentary Election Results

Chapter 5 - Industry Forecast Scenario

Metals Prices

Risks To Outlook

Global Industry Overview

Regional Analysis

Morocco Mining Industry Forecast

Table: Morocco Mining Industry Forecast

Chapter 6 - Competitive Landscape

Chapter 7 - Company Monitor

Managem

Odyssey Resources

Metalex Ventures

Appendix A: Mining Ratings: Methodolog

Introduction

Breakdown of Ratings

Breakdown Of Components

Appendix B: The World Economy

Outlook And Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 And 2008

Japan's Medium-Term Prospects

China

China In 2007 And 2008

China's Medium-Term Prospects

Oil

Appendix C: Regional Demographic Data

Table: The Long View: Data Over The Economic Cycle (2000-2007)

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn