Morocco, a nation long recognized for its vast phosphate reserves, is embarking on an ambitious and comprehensive reform of its mining sector. Led by the Ministry of Energy Transition and Sustainable Development, under the guidance of Minister Leila Benali, this strategic overhaul aims to transform the sector into a dynamic engine for economic sovereignty and territorial development. The reforms encompass legislative amendments, extensive digitalization, and targeted regional initiatives, all designed to unlock the kingdom’s significant, yet largely untapped, mineral wealth and attract substantial investment.

This sweeping initiative is more than just a regulatory update; it represents a fundamental shift in how Morocco views and manages its subterranean assets. It’s a clear signal to both domestic and international investors that the North African kingdom is serious about diversifying its economy, creating jobs, and playing a more prominent role in the global supply chains of critical minerals essential for the ongoing energy transition.

The Imperative for Reform: Morocco’s Economic Ambitions

Morocco boasts a rich mining history stretching back to the Phoenicians, with modern mining operations taking root in the 1920s. Despite this long legacy and being one of Africa’s most politically and economically stable nations, its mineral resources, beyond phosphates, remain relatively underexplored. The mining sector currently contributes approximately 10% to Morocco’s Gross Domestic Product (GDP) and accounts for around 30% of its total exports. It provides direct employment for nearly 40,000 people and attracts between A3.4 billion in annual investments. However, the sector’s heavy reliance on phosphates, which constitute about 70% of the world’s known reserves and are crucial for fertilizer production, has long been a point of strategic focus.

The new reform seeks to diversify this reliance, aiming to significantly boost revenue from non-phosphate mining by A$1.4 billion by 2030. This aligns perfectly with Morocco’s broader economic vision, which emphasizes sustainable development, industrial acceleration, and increased foreign direct investment (FDI). The kingdom is strategically positioned at the crossroads of Africa, Europe, and the Atlantic Basin, making it an attractive hub for manufacturing and export. Its proactive approach to trade liberalization, structural reforms, and a generally stable macroeconomic environment has already drawn considerable international attention, particularly in sectors like automotive, aeronautics, textiles, pharmaceuticals, and renewable energy. The mining reform is designed to complement these efforts, providing the raw materials necessary for a burgeoning domestic industrial base and for export to global markets.

Legislative Pillars: Unpacking the Amendments to Law No. 33.13

At the heart of this comprehensive overhaul is a draft law amending Law No. 33.13 on mines, which is currently undergoing government review after extensive consultations with various stakeholders. This legislative update introduces several critical changes aimed at enhancing governance, streamlining procedures, and attracting investment.

One of the most significant provisions is the improved facilitation of private sector access to local mineral resources. Previously, obtaining prospecting or exploitation licenses could be a cumbersome process. The new framework aims to simplify these procedures, potentially allowing private entities to access resources without the same prior licensing hurdles, thereby accelerating investment and operational timelines. This move is crucial for attracting agile, specialized mining companies, both local and international, who might have been deterred by bureaucratic complexities in the past.

Furthermore, the legislation places a strong emphasis on prioritizing “strategic and critical minerals” essential for national industrial development. While an official, exhaustive list of these minerals has not yet been publicly released by the Ministry of Energy Transition, reports from bodies like the Economic and Social Council (EESC) have proposed a list of 24 such minerals. These typically include elements vital for high-tech industries, renewable energy technologies, and national defense. Common examples of critical minerals globally include lithium, cobalt, nickel, and rare earth elements, alongside more traditional metals like copper, iron, manganese, gold, lead, silver, and zinc. Morocco is known to possess significant deposits of several of these, including cobalt, copper, and tin, in addition to its phosphate wealth. The focus on these minerals is a direct response to rising global demand driven by the energy transition, particularly the burgeoning electric vehicle (EV) battery market, where Morocco is already attracting significant investments from Chinese companies for refining strategic minerals.

The amendments also introduce the concept of “rehabilitation” for mining sites, replacing the previous “environmental compliance guarantee” with a rehabilitation fee. This ensures that areas impacted by mining activities are secured, stabilized, repaired, and restored, often through actions like spreading topsoil and planting vegetation. This shift underscores a growing commitment to environmental responsibility and sustainable mining practices, which are increasingly important for attracting ethically conscious investors and aligning with international standards.

The Digital Backbone: Revolutionizing Mining Operations

A cornerstone of Morocco’s modernization effort is the ambitious digital transformation of the mining sector. This includes the planned establishment of a national mining registry. This centralized digital platform is envisioned to be a comprehensive hub for all mining-related information, including licensing procedures, regulatory standards, detailed geoscientific data, and information on operating companies.

The benefits of such a registry are manifold. Firstly, it will significantly enhance transparency, providing a clear and accessible overview of the sector for all stakeholders, from potential investors to regulatory bodies and local communities. This transparency is key to fostering trust and reducing perceived risks. Secondly, it will streamline licensing procedures, reducing bureaucratic delays and making the investment process more efficient. Investors will have quicker access to essential data, enabling faster decision-making and project initiation. Thirdly, by centralizing geoscientific data, the registry will facilitate more targeted and efficient exploration efforts, helping to identify new deposits and optimize resource extraction. Finally, it will improve regulatory oversight and enforcement, allowing authorities to better monitor mining activities, ensure compliance with environmental and labor standards, and combat illegal mining. This digital push aligns with Morocco’s broader commitment to open government and administrative reform, as outlined in its National Action Plan.

Empowering Local Economies: Jobs, Training, and Subcontracting

The reforms are not solely focused on attracting large-scale foreign investment; they also place a strong emphasis on fostering local economic development and ensuring that the benefits of mining are shared broadly. The framework explicitly enables subcontracting for various mining-related activities. This provision is designed to create opportunities for local businesses and service providers, integrating them into the mining value chain and stimulating regional economic activity.

Crucially, the new mandates prioritize local employment and continuous workforce training. This means that mining operators will be encouraged, and in some cases required, to hire from local communities and invest in upskilling programs to meet the evolving technical requirements of modern mining. This is a vital step towards ensuring that the sector contributes to inclusive growth and addresses unemployment challenges in mining-dependent regions. While Morocco’s labor code has faced criticism in the past for its limited applicability to smaller firms and subcontractors, these new mandates within the mining reform aim to bridge that gap, promoting better labor practices and ensuring that a wider segment of the workforce benefits. The goal is to build a skilled local workforce capable of supporting advanced mining operations, from exploration and extraction to processing and value addition.

The initial implementation results are promising: 277 previously withdrawn mining permits have been reallocated to 78 companies, predominantly Moroccan. These companies have committed nearly 2 billion dirhams (approximately $200 million USD) in investment and are expected to generate around 6,000 direct jobs. The government’s awarding of 264 research permits and 13 exploitation licenses further demonstrates a renewed dynamism and confidence in the sector’s potential.

Regional Revitalization: Targeting Key Mining Zones

The reform initiatives are deeply rooted in a commitment to territorial justice and inclusive growth, with specific regional development programs targeting traditional mining areas. Tafilalet and Figuig, historically significant mining regions in eastern Morocco, are receiving particular attention. Preparatory studies are currently underway for new tenders in these areas this year. The Eastern High Atlas region will offer 179 lots covering 2,195 square kilometers, while Tafilalet-Maïder will present 149 lots spanning 1,100 square kilometers.

These regions are known for deposits of various minerals, including lead, zinc, and barite, often extracted through artisanal mining. The new tenders aim to formalize and modernize these operations, bringing in more structured investment and advanced techniques while ensuring environmental and social safeguards. Information campaigns and stakeholder workshops are planned to ensure inclusive participation, allowing local communities and small-scale miners to understand and benefit from these new opportunities. This approach seeks to balance large-scale industrial development with the socio-economic realities of traditional mining communities.

Jerada’s Transformation: A Model for Sustainable Transition

Among the regions receiving special attention, Jerada Province stands out as a symbol of Morocco’s broader energy and social transition. Located in northeastern Morocco, Jerada was once the country’s largest coal producer. However, the closure of its coal mines led to a severe economic, environmental, and social crisis, leaving the city grappling with high unemployment, informal housing, and a loss of identity.

The specific restructuring plan for Jerada aims to transform these historical environmental and social challenges into sustainable economic opportunities. This aligns with royal directives for a new development model based on territorial justice and inclusive growth. The plan for Jerada involves:

• Economic Reconversion: Exploring new economic activities beyond coal, such as agriculture, local crafts, and potentially mining heritage tourism.
• Environmental Rehabilitation: Addressing the legacy of mining waste (tailings) by exploring innovative uses, such as transforming them into eco-friendly construction materials. This not only cleans up the environment but also creates new local industries and jobs.
• Social Empowerment: Rebuilding community structures, empowering women, and fostering collaborative processes where locals are actively involved in rebuilding their neighborhoods and creating new livelihoods.

Jerada’s transformation serves as a crucial test case for how Morocco intends to manage the transition away from traditional extractive industries while ensuring the well-being and prosperity of affected communities. It embodies the kingdom’s commitment to a “just transition,” where economic development is pursued hand-in-hand with social equity and environmental sustainability.

Morocco’s Broader Investment Appeal and Global Mineral Demand

Morocco’s comprehensive mining reform is strategically timed to capitalize on surging global demand for critical minerals, which are indispensable for the global shift towards sustainable energy. The International Energy Agency (IEA) forecasts that demand for critical minerals will need to triple by 2030 and quadruple by 2040 to achieve net-zero emissions targets. Minerals like lithium, cobalt, graphite, and rare earth elements are fundamental to technologies such as electric vehicles, wind turbines, and solar panels.

The concentration of mineral production and refining in a few specific countries, coupled with long lead times for developing new mines, poses significant risks to global supply chains. This creates a strategic opportunity for countries like Morocco, which possess significant reserves and are actively working to create an investor-friendly environment. Morocco is uniquely positioned to supply the world with essential “electro-molecules,” critical minerals, and low-to-zero carbon products needed for a greener future. Its commitment to “green mining” and alignment with EU sustainability standards further enhances its appeal to international investors seeking responsible sourcing.

Beyond mining, Morocco has been actively pursuing a robust FDI strategy. The country’s political and macroeconomic stability, coupled with its extensive network of free-trade agreements (including with the United States since 2006), makes it an attractive destination. The government actively encourages foreign investment through various incentives, particularly in export-oriented sectors. Manufacturing, real estate, telecommunications, tourism, and renewable energy have historically attracted significant FDI. In 2023, Morocco announced over $10 billion in investments for building an integrated battery manufacturing and electric vehicle production chain, further solidifying its role in the green economy value chain. The allocation of one million hectares of land for green hydrogen production in March 2024 also highlights Morocco’s forward-looking approach to energy and industry.

Conclusion: A Balancing Act in a Dynamic World

Morocco’s ambitious mining sector reform, spearheaded by Minister Leila Benali, represents a pivotal moment for the North African nation. By modernizing its legal framework, embracing digitalization, and focusing on sustainable and inclusive regional development, Morocco aims to unlock its full mineral potential. This strategic pivot is not just about increasing revenue; it’s about diversifying the economy, creating thousands of jobs, empowering local communities, and positioning Morocco as a key player in the global supply of critical minerals vital for the energy transition.

The challenges are significant, including ensuring effective enforcement of new regulations, managing environmental impacts, and sustaining community engagement. However, the government’s proactive approach, coupled with its strong commitment to Vision 2030 and its established track record of attracting FDI, suggests a promising outlook. As the world’s demand for green technologies continues to soar, Morocco’s bold steps in reforming its mining sector could indeed unearth a prosperous and diversified future, far beyond its traditional reliance on phosphates. The coming years will be crucial in demonstrating the full impact of these reforms on Morocco’s economic landscape and its standing in the global mineral market.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

5th August, 2025