Sunday, September 18, 2016

Morocco’s economy and OCP

Office Chérifien de Phosphates (OCP) — Morocco’s state owned phosphate producer and world’s leading exporter is a key factor in the Moroccan economy as it contributes more than 4 percent to the country’s GDP.

OCP is the second world’s largest producer of phosphate rock (the Chinese are the first) and ranks fifth among the main phosphoric acid makers, and had close to 8 million tonnes of granulation capacity in 2015.

Looking at the company’s activity, it is interesting to observe that on one hand since 2011 they have engaged into a massive multi-billion dollar expansion and modernization plan, but on the other OCP is currently receiving 40% less for its output than it did four years ago.




Between 2016 and 2020, OCP plans to commission four phosphate complexes, each with a one million tonnes granulation capacity, at its Jorf Phosphate Hub. In early 2016, OCP announced the project for a one million tonnes granulation facility in Phosboucraa, in the political disputed Western Sahara, for completion in 2020. A key element in OCP’s plans to expand its phosphate rock mining capacity from 30 million to 55 million mt/y has been the construction of the 187km long pipeline from Khourigba, inland, to the port and fertilizer production complex at Jorf Lasfar. Capable of handling 38 million mt/y of phosphate rock slurry, the pipeline has cut the company’s logistics costs by 90% while saving some 3 million m3 of water a year.

OCP accounts for some 28% of global phosphate exports in all forms, with mining capacities in excess of 32 million tonnes p.a. The company plans to expand its mining capacity over the next ten years, with the objective of reaching an effective capacity of 55 Mt in the longer term. Expansions are taken place in the main mining centers of Khouribga and Gantour. In the long term, the company will open new mines on the Meskala deposit (Essaouira Region), to feed downstream capacity projects at its Safi Phosphate Hub. A key feature of these projects is the expansion of floatation capacity, allowing OCP to further extract and process lower grades of phosphate ore. The bulk of the projected increase in production of phosphate concentrates would be earmarked for captive uses at OCP various Hubs. It has been reported that OCP plans to increase its phosphoric acid capacity from its current 4.7 millions of tonnes of P205 to 7.8 million in 2020.