United Nations Secretary-General Ban Ki-moon has warned of the risk of “full-scale war” in the disputed Western Sahara region if the peacekeeping mission there is not extended. In a report sent to the U.N. Security Council April 18, he said the Security Council should renew the mandate of the U.N mission to Western Sahara for a further year to avoid hostilities there, according to news agencies that obtained the report. The U.N pulled out most of its international staffers in late March after Morocco demanded they leave because of remarks made by Ban about the disputed territory.
Morocco has controlled most of Western Sahara since 1975 and claims the sparsely populated region as its own. The area is home to OCP SA’s Phosboucraâ phosphate mining operation. Morocco’s annexation of the territory sparked a rebellion by the opposition Polisario Front. The U.N. brokered a ceasefire in 1991, but subsequent talks have failed to find a solution, and the recent incident and the lack of progress on a promised referendum on the status of the region have heightened tensions.
As to the U.N. situation, OCP said its policy is not to provide running commentary on political matters.
The U.N. Security Council is due to vote later in this month on whether to renew MINURSO’s (as the U.N. mission to Western Sahara is known) mandate. Ban warned in this week’s report that “the risk of rupture of the ceasefire and a resumption of hostilities, with its attendant danger of escalation into full-scale war, will grow significantly in the event that MINURSO is forced to depart or finds itself unable to execute its mandate.” The U.N. chief believes that “terrorist and radical elements” would exploit the vacuum resulting from a U.N. withdrawal from the region.
Phosboucraâ’s sales decreased by about 37 percent in 2015, falling to 1.3 million mt of OCP’s Group’s total sales of 25.5 million mt, from 2.1 million and 27 million mt, respectively, in 2014, according to an OCP spokesperson. He cited the main reasons for this decrease in sales as major logistical constraints at the wharf of Laâyoune due to off-and-on extreme ocean swells that led to a complete closure of the wharf for 280 days during 2015. As a result, numerous vessels remained in anchorage for long periods of time, causing some of Phosboucraâ’s shipments to be postponed to 2016, he said.
Linked to this first issue was also the construction of three new berthing dolphins (structures that extend above the water level to protect against vessel collisions with loading facilities) at the loading dock of the Laâyoune wharf. “These logistical constraints pushed certain of our customers to seek alternative supplies from other locations in Morocco (namely from the Khouribga mine) and elsewhere. The alternative volume sourced from Northern Morocco was about 350,000 mt,” the spokesperson said.
Potash Corp of Saskatchewan Inc. and Agrium Inc., were the largest importers of phosphate rock from Western Sahara/Phosboucraâ last year, between them accounting for about 64 percent, according to OCP. PotashCorp received 427,450 mt and Agrium 405,818 mt.
Some companies have opted to not buy Western Sahara rock, namely Yara International ASA, The Mosaic Co., and most recently Lifosa AB, which can now source rock from parent EuroChem.
“PotashCorp. has concluded that the use of phosphate rock from other sources is not a viable option given sensitivities to the particular qualities of the rock source. The company – and its U.S. subsidiary – has consistently adhered to applicable trade and custom laws regarding the importation of phosphate rock. Neither the U.N. nor any other competent legal authority has concluded that the production and use of phosphate rock from Western Sahara is in violation of international law,” according to a statement by PotashCorp. The company believes that PhosBoucraâ’s operations and investments in the region have significantly contributed to the development of Western Sahara and continue to provide substantial and sustainable economic and social benefits to the Saharawi population.
Agrium started importing phosphate rock from OCP in late 2013 for its Redwater plant in Alberta after its Kapuskasing, Ont., mine was shut down due to a lack of rock reserves. An Agrium spokesperson told Green Markets the company does not take a political position on issues related to disputed territorial claims and looks to guidance from the Canadian and U.S. governments before entering into any agreement with may be related to the relevant territory. Agrium said it considers itself a positive influence with regard to OCP’s activities in Western Sahara.
OCP said it has dedicated a significant share of its global investment program to the development of Phosboucraâ, which is not only intended to ensure the long-term sustainability of the mining operations, but also aims at actively promoting the social and economic development of the region. The company in February announced ambitious plans to build new phosphate rock processing facilities and a phosphate fertilizer complex as part of its Phosboucraâ operation (GM Feb. 12, p. 18). The projects are part of the producer’s stated MAD19 billion ($1.95 billion) investment program for the region, which also will include a new wharf and a technology park, including a university.