OCP reported to be eyeing K investment

Casablanca—OCP SA is reportedly looking to acquire or buy into a potash project, particularly in Africa. Such a move to secure its own source of potash would be in line with the company’s ongoing strategy to diversify its product portfolio through the development of new products, including various grades of NPKs and NPK micronutrients, and to further its expansion in high growth markets such as Africa. Additionally, through its newly-established OCP Africa subsidiary, OCP has stated plans to establish, internally and through local partners, blending facilities in a number of sub-Saharan African countries (GM Feb. 26, p. 16). According to Africa Intelligence, OCP in recent weeks has been evaluating some of the continent’s potash developments, including Elemental Minerals’ Kola sylvinite project in the Republic of Congo, for which a pre-feasibility study and phased implementation study have been completed, as well as projects being developed on Ethiopia’s Danakil Depression. For Kola, a mining license for an underground mine and ESIA approval were granted in August 2013. Currently, Elemental is planning a tie-up with Australian private equity group Summit regarding a US$50 million equity investment. The Highfield Resources’ Muga project in Spain is another project the Moroccan fertilizer company is said to be interested in, according to Africa Intelligence. Nor is OCP overlooking the resources of its own country. Early last year, the company is understood to have issued a call for bids to explore Morocco’s own potash resources, which include the Khemisset evaporite basin. OCP had not responded inquiries by press time. OCP started to produce and sell new products in 2011, and since then has developed 25 new formulations of NPK, NP-S, and micronutrients, with sales of all new products, including feeds and water soluble MAP 11-62, reaching 1.193 million mt in 2015, up from 796,000 mt in the previous year. The company is targeting high growth markets – notably Africa, which accounted for 24 percent of its total fertilizer exports last year.