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. 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 raring 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). Although Morocco is considered both economically and politically stable, it still needs to bring about reforms in its tax structure and reduce trade bureaucracy in order to witness significant growth in its industries. Vietnam and Morocco signed a deal in July 2008 that will lead to the construction of a US$600mn fertiliser plant in Morocco to supply Vietnam and neighbouring south-east Asian countries. Vietnamese state media reported that an investment agreement was to be signed in August 2008 between OCP and PetroVietnam Fertiliser and Chemical Company to build a diammonium phosphate facility within the north African nation. The plant will produce up to 1mn tonnes of fertiliser per annum once fully operational in 2011. State media have said that this will be Vietnam’s largest foreign investment project to date. Earlier, OCP said in February 2008 that it was inviting foreign companies to invest in its Jorf Phosphate Hub at Jorf Lasfar outside Casablanca. The state-owned company said it was planning US$2.5bn worth of investments in the next five years. OCP’s aim was to attract foreign investment from companies interested in gaining access to low-cost phosphate products, along with tax and real estate benefits. OCP produces around 27.25mn tonnes of raw phosphate per annum, giving it a 47.2% share of world output of the mineral, a 47.2% share of world phosphoric acid output, and a 9.5% share of world fertiliser output. 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 open up its mining sector further. BMI forecasts that the Moroccan mining industry will register an average growth rate of 4.6% between 2008 and 2012 and be valued at over US$2.4bn by 2012.