OVERVIEW

WWW.ONHYM.COM

2016

MINING

KINGDOM OF MOROCCO

GENERAL INFORMATION

POLITICAL REGIMEThe Kingdom of Morocco is a parliamentary constitutional monarchy. The King is the head of the State. The Chief of government is appointed by the King. Legislative power is vested in a bi-cameral system with two chambers: The Assembly of Representatives elected for a 5 year term, and the Assembly of Councillors serving a 9 year term with one-third of its seats up for election every 3 years.

Surface 710 850 sq Km

Population 201634, 8 million(60% urban and 40% rural).

Main citiesCasablanca, Rabat (Capital city), Mar-rakech, Fes, Oujda, Agadir, Tangier, Lâayoune, Meknes, El-Jadida, Safi

Languages Official: Arabic, Amazigh.French (business), Spanish, English.

Currency Moroccan Dirham (MAD)(1 US Dollar = 9,60 MAD Average rate for 2016).

Weight & Measure units Metric system

TimeGMT

Climate Continental – Mediterranean

Tourism10, 3 million visitors in 2016

TRAFFIC 2016

Passengers 40.5 million Freight 31 million tons

RAIL SEA AIR

Passengers 4 429 673 Freight 121.1 million tons

Passengers 18.2 million Freight 68 436.24 tons

INFRASTRUCTURE OF MOROCCO

GDP DISTRIBUTION

GDP-2016: 1.02 Trillion DH (+ 1.2% / 2015)Source: High Commission for planning - HCP * Provisional figures

9,1%

11,8%

12%

26,1%

41%

PUBLIC ADMINISTRATION

TAXES ON NET PRODUCTS SUBSIDIES

PRIMARY SECTOR (AGRICULTURE, FORESTRY, FISHING)

SECONDARY SECTOR (MANUFACTURING, MINING, BUILDING, PUBLIC WORKS)

TERTIARY SECTOR (TRADE, TRANSPORT, TELECOMMUNICATIONS, OTHER SERVICES)

Extension of the scope to all mine-ral substances for industrial use, exclu-ding construction and civil engineering materials;

Introduction of the exploration authoriza-tion to operate in large areas (100 to 600 km²) granted for a period of two years, renewable only once for a period of one year, with the right to obtain priority research permit within the scope of the authorization;

Research permit applies to a square perimeter 4 X 4 km (16 km²), granted for a period of 3 years, renewable only once for a period of 4 years.

Mining license covering an area that cannot exceed the surface area of the research permit from which it derives, and cannot be less than 1 km². Granted for a period of ten years, renewable for successive ten-year periods until reserves are depleted;

Introduction of new measures for environ-mental management;

Geothermal deposits are considered mines;

Establishment of the operating license of dumps and tailings, planned for the enrichment and / or recovery of waste and residues of mines products;

Extended coverage by the mining legislation to offshore areas. The activities related to ex-traction, collection and marketing of mineral and fossil specimens and meteorites are subject to the mining law;

Introduction of provisions relating to natural or artificial cavities for underground storage of natural gas, liquid hydrocarbons, liquefied or ga-seous, or chemicals for industrial use.

Exemption from import duty and the value added tax applicable for imported equipment for investment equal or greater than 200 million MAD.

Reduced tax rate of 17.5% for:Exporting mining companies;Mining companies which sell their products to

companies which export them after valorization.A State contribution to infrastructure require-

ments (including roads, water supply and elec-tricity) within the limit of 5% of the value of the investment (for projects whose investment ex-ceeds 200 million MAD).

LEGAL FRAMEWORK

INCENTIVES

KEY MINING INDICATORS 2016

Investments 32 billion DH

Productions Mining products28.92 million tonnes (26.9 million tonnes phosphates)

Processed products Phosphate derivatives: P2O5: 4.93 Mt, Fertilizers: 6.96 MtOther processed products: 13 809 tonnes Jobs

41 000

Exports 44.6 billion DH

A new mining law was adopted by the Parliament and published in the Official Bulletin N° 6384 on August 6, 2015.The Law was implemented on 23 May 2016 after the publication of the imple-mentation decree.This law n° 33-13 repeals the Mining Regulations dated April 16, 1951. Its 122 articles come to give new impetus to the Moroccan mining industry. The new provisions of the law are as follows:

FOREIGN TRADE 2016

(Source : Office des Changes)

11,01%

64,33%

0,55%

3,84%

20,26%

8,05%

69,98%

1,57%

10,03%

10,38%

Imports CIF: 409 BILLIONS DH

Exports FOB: 224 BILLIONS DH

ONHYM MINERAL EXPLORATION PROJECTS 2016

Source: Ministry of Energy, Mines and Sustainable Development . Department of Energy and Mines

MINING PRODUCTION

Source: Ministry of Energy, Mines and Sustainable Development (Department of Energy and Mines) * Provisional

DISTRIBUTION OF MINING PERMITS BY OPERATOR (2016)

ONHYM

Mining Companies

Individual Operators 2129

3248

976

34%

51%

15%

Individual Operators

Mining Companies

ONHYM