The Kingdom of Morocco has a long, rich history in the mining industry. In addition to its vast phosphate reserves, other minerals abound including copper, manganese, gold, and silver.
While these have remained largely underground, Morocco’s national development strategy aims to encourage their exploration and development, and to triple mining revenues by the year 2025. To achieve these lofty goals, Morocco has made great strides in recent years to modernize its mining sector, including the enactment of new Mining Law 33-13 of July 2015 and its Implementation Decree in April 2016.
Framework – The mining law is a short, investor-friendly framework that encourages participation in all stages of the mining process. In a move away from other African frameworks, Morocco requires no free-carry interest for the state, no community or local content requirements, and no requirement to sign a State Mining Agreement.
Mining Rights – The mining law provides for various types of mining licenses, including an Exploration License (valid for 3 years, renewable once for 4 years) and a Mining License (valid for 10 years, renewable for 10-year periods until reserves are exhausted). These rights can only be held by a company established under Moroccan law.
Foreign Ownership – With the exception of phosphates (which are reserved for the state), Morocco has no restrictions on international investment in the mining sector.
Fiscal – In addition to land royalties, mining license holders must pay an annual mining tax calculated on ‘tons extracted’. Other common taxes include a corporate income tax of 35%, or 17.5% if the product is exported. Value Added Tax (VAT) of 20% with reduced rates and exemptions for certain transactions, including the exportation of mining products.
Why Morocco? – With its lofty goals to expand its mining industry, Morocco has taken other steps to attract foreign investment. This includes the establishment of ‘Casablanca Finance City’ which offers attractive incentives for international investors to invest and operate in Morocco, and to choose Casablanca as a gateway to Africa. With world-class infrastructure, and a thriving renewable energy sector, Morocco also enjoys an enviable geographic location giving it easy access to global markets.
Why Serus? – Our team has extensive experience working and living in Morocco. Working in French and English, we have advised on many of Morocco’s best-known mining and renewable energy projects in recent years. We manage company structuring, project acquisition, and due diligence. We also prepare mining agreements including royalty, JV, construction, and earn-in agreements.
Serus is an international law firm that uses technology and lower overheads to provide legal services at a significantly better value. Please contact our team or email felix@seruslegal.com
The contents of this insight do not constitute legal advice and are subject to input from a lawyer.