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PHOSPHATE 44 E&MJ; • JULY 2017 www.e-mj.com As noted in E&MJ;'s most recent report on fertilizer raw materials (June 2016, pp.36-43), the world's phosphate in - dustry has been afflicted with oversup - ply — particularly of Chinese fertilizer products — with the end result having been a slump in producer prices. Moroc- can phosphate rock concentrate is widely used as the benchmark for world prices, based on material containing 32%-33% P 2 O 5 (70% BPL) on the quayside at the country's export terminals. Between September 2014 and July 2016, prices remained stable at between $115 and $123/metric ton (mt), a far cry from the peak of $430/mt achieved in September 2008 or the $188/mt in April 2012. Over the past year, however, the trend has been steadily downhill, with the price slipping below $100/mt in January and hitting $96/mt in April. With the United States Geological Survey (USGS) estimating world phos- phate rock production to have jumped by 20 million mt to 261 million mt last year, and increased competition in a relatively quiet market, the price decline is perhaps unsurprising. Nonetheless, there is some optimism around, as the U.S.-based fer- tilizer company, Mosaic, noted in this year's edition of its Phosphate Outlook, published in March. "Several developments are driving up prices," the company said. "Global ship- ments of the leading products are project- ed to post solid gains this year as a result of much leaner channel inventories as well as strong agronomic and economic demand drivers. Sales are off to a fast start this year because distributors who deferred pur- chases as prices declined last year are now scrambling to cover large commitments as prices rise this year. At the same time, Chi- nese export availability has declined due to a take-off of domestic shipments as well as a drop in industry output." As will become apparent later in the article, not everyone agrees with the tenor of Mosaic's conclusions, especially as sig- nificant new phosphate mining and fer- tilizer-production capacity will be coming on stream shortly. And a sizeable chunk of this will come from Morocco, where the state-owned company OCP is in the mid- dle of a $15 billion capital investment program that will double its production of phosphate rock and triple its output of fertilizer products by 2025. Mining Phosphate for Nearly a Century The initial discovery of phosphate de- posits in Morocco in 1908 led to further isolated resources being identified, but the full extent of the country's potential was not realized for another decade. In 1917, however, construction of the rail- way inland from Casablanca to Oued Zem uncovered substantial near-surface de- posits on the Oulad Abdoun plateau, and the opportunity for large-scale production then became apparent. Office Chérifien des Phosphates (to- day's OCP) was formed in 1920 and min- ing began at Boujniba in the Khouribga dis- trict the following year. According to data from the British Geological Survey (BGS), production that year totaled 32,500 mt. Two years later, Morocco was producing 225,000 mt/y of phosphate rock. The opening up of the Khouribga de- posits was followed in 1932 by operations at Youssoufia in the Gantour region fur- ther to the southwest, with the combined operations producing nearly 1.6 million mt in 1938 and 5.2 million mt in 1955. Morocco's independence from the former colonial power, France, in 1956, brought renewed demand for natural resources as a foundation for economic development, and by 1970, OCP's output had risen to 11.4 million mt/y. The company opened its third mining center at Benguerir in Gantour, in 1980, having in the mean time acquired a ma- jority holding in the Boucraâ operations in Western Sahara from the Spanish state company, INI. OCP bought out INI's re- sidual stake in the operation in 2002, with Phosboucraa becoming a wholly owned subsidiary. Today, OCP is not only the world's larg- est exporter of phosphate rock, but is a OCP Bets Big on Rising Phosphate Demand The Moroccan phosphate producer and world's leading phosphate rock exporter is investing in new technology to boost its market share and cut its energy bills By Simon Walker, European Editor Stripping overburden at one of OCP's open-cast mines. The company plans to double its mining capacity by 2025.