On September 11th, local time, the Moroccan Ministry of the Interior announced that as of 10 a.m. that day, the death toll from the strong earthquake in Morocco had risen to 2,497, with 2,476 people injured. The Moroccan armed forces and emergency services are working diligently to reach the most severely affected mountainous areas to carry out rescue operations. The World Health Organization stated that this strong earthquake has affected over 300,000 people. Search and rescue operations are still ongoing.
Morocco, rich in resources and strategically located, is renowned for its phosphate reserves globally. Following the earthquake, while people around the world are offering their prayers for Morocco, there are also concerns about the impact of the earthquake on the global phosphorus chemical industry.
Morocco is located in the northwestern part of the African continent, at the southern end of the Strait of Gibraltar. It shares the gateway to the Mediterranean Sea with Spain, making its geographical location crucial. This relatively small African nation, with a total territory of 450,000 square kilometers, possesses the world's largest phosphate reserves. According to data from the United States Geological Survey (USGS), in 2021, Morocco's phosphate rock reserves reached 50 billion tons, accounting for 70% of the world's total.
It is understood that Morocco's total production of phosphate and its derivatives accounts for approximately 30% of the global market. The Moroccan Phosphates Company (OCP), as the sole custodian of the country's phosphate resources, has become the world's largest exporter and producer of phosphates and one of the largest fertilizer manufacturers. From 2015 to 2019, OCP's annual phosphate fertilizer exports increased by about 500,000 tons, accounting for roughly half of the global growth in demand. According to its plans, there are further expansion plans for phosphate fertilizer production, with production capacity expected to reach 15 million tons by 2021 and 25 million tons by 2030.
Phosphate rock is the source of the phosphate chemical industry and can be processed into fertilizers such as monoammonium phosphate, diammonium phosphate, and Triple Superphosphate , which are used in agricultural production. It can also be co-fired with silica and coke to produce yellow phosphorus, which is further processed into phosphoric acid, glyphosate, and other products used in agriculture and new energy fields, with over 70% of phosphate rock used for phosphate fertilizer production.
"The epicenter of this earthquake is located in Marrakech, Morocco, an area within a radius of 200 kilometers that is home to several phosphate mining companies. The global phosphate chemical industry is definitely going to be affected, but the extent of the impact cannot be determined at this time," said an industry insider to reporters.
"Morocco is a major supplier of global phosphate and is also the world's largest phosphate ore exporter. This earthquake may disrupt the existing supply and demand structure, leading to a chain reaction. The extent of the impact will depend on the damage caused by the earthquake to local transportation, mines, ports, and phosphorus chemical production facilities," he added.
Attention: This article is provided for readers as a business reference and should not be considered as investment advice. Kelewell is not responsible for the accuracy of the data.
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