Floor Treasures and Industry
Mineral resources and Industry
Let us take a look at Morocco’s largest foreign exchange earner, the mineral industry and a major contributor to the country’s GDP. Here is an overview of Morocco’s mineral resources and industry.
Morocco is rich in mineral deposits. It is the third larger producer of phosphate rock after USA and China. Large mineral resources exist but have yet to be exploited the full capacity. It is the largest foreign exchange earning sector and accounts for about 35% of foreign trade. It contributes to about 6% of the GDP. The employment opportunities are many. There are various chemical and textile industries that play an important role in the improvement of the economic condition of the country.
Morocco has a large reserve of phosphate rocks. There are many opportunities open for conversion of phosphate rock into downstream chemicals. There is substantial production of Copper, cobalt, anthracite coal, silver, gold, iron ore, zinc, manganese etc.
Many incentives are being given to domestic as well as international companies to improve the production of mineral resources. There are regulations related to management of petroleum and natural gas resources as per the Code Bill of 1992.
There is waiver of petroleum duty for the first three years of production. Incentives like no royalty for the first 4 million metric tons have been given to boost production.
More than any other mineral the phosphate rock and fertilizer industry including phosphoric acid, diammoium phosphate etc are major contributors. It forms about 70% of the mineral exports. The phosphate production is so huge that it covers about 27% of the world need.
The stocks in the Western Sahara are huge and are about 70% of the world supply. A major amount of the phosphate is exported unprocessed. There are other mineral like iron ore that play an important part. Morocco is the largest producer of the lead ore and cobalt in Africa. There are vast reserves of zinc, coal and manganese.
Another sector where there are great opportunities for growth are the oil and natural gas production. Vast deposits of gold, silver, lead, iron and phosphates have been found in the Atlas ranges also.
Industries in Morocco
The mining industry in Morocco is the leading industry here. However, there are other sub sectors like the oil industry that are equally vital to the overall growth of economy of the country.
The major oil refineries are at Sidi Kacem and Mohammedia. Morocco sees the industrial exports amounting to about 70% of the total exports. Other sectors like sugar production, textile industry, leather industry, cement production, mechanical industry and the milk industries as well as flour mills are some other areas where growth is being experienced.
The cement industry is benefited by the myriad construction projects underway throughout the country. There are more than 9 cement companies in Casablanca, Tangiers, Agadir and other towns and they are growing with the growth in demand. The leather good industry is also growing with the duty free entry on the US market under the Free Trade Agreement. The Moroccan government on its part has taken the initiative to market the goods abroad.
The industries are mostly on the coastal areas between Casablanca and Rabat. The sector is the most dynamic one of the Moroccan economy and contributes to the growth of the country to a large extent.