OCP SA, Morocco’s phosphate giant, is seeking foreign equity investments to offset rising sulfur costs and supply disruptions caused by the Iran war. Talks are underway for an equity injection in its new Mzinda fertilizer hub, slated for next‑year production, as soaring sulfur prices—driven by Strait of Hormuz disruptions—have squeezed profits and prompted a first‑half loss. The state‑owned firm, which controls over two‑thirds of global phosphorus deposits, will not ask the Moroccan government for capital.
In July it formed a joint venture with Koch Ag & Energy Solutions, and is also considering equity for its specialty chemicals subsidiary OCP Specialty Products and Solutions (SPS) and its uranium extraction arm Uranext. To mitigate sulfur reliance, OCP is boosting TSP fertilizer output, pursuing partnerships with traders like Bunge and Louis Dreyfus, and exploring alternative supplies from Spain, Canada, Kazakhstan, and the US Gulf Coast, plus Chinese tech to extract sulfur from pyrites. The company aims for 1 million tons of sulfur output by 2027, potentially reaching 4 million tons by 2030, and seeks long‑term shipping contracts to cut costs by up to 2 billion dirhams ($203 million).
Source: Bloomberg Markets · Summarized by HeadlinesBriefing