Morocco’s leading mining company, Managem, has announced plans to raise its capital by 3 billion dirhams ($300 million) in the first half of this year to fund its expansion projects in gold, copper, and cobalt. The decision was approved by shareholders as the company aims to double its earnings from 9 billion dirhams by 2025, CEO Imad Touimi told Moroccan news website Medias24.
Managem, which operates in six African countries, is controlled by the royal family holding company Al Mada. It is one of the largest producers of gold, silver, cobalt, and copper in Africa, with mines in Morocco, Sudan, Senegal, Guinea, Ivory Coast, and Ethiopia.
The company’s capital stood at almost 1 billion dirhams as of June 2023, according to the company’s latest financial report. The capital increase will help finance the development of new mines and the expansion of existing ones, as well as the construction of a factory of cobalt sulfate, a key ingredient for electric vehicle (EV) batteries.
Touimi said that Managem had resumed gold production at its mine in northern Sudan this month, after a halt due to the war there. The mine represents up to 15% of the company’s revenue, he said. He added that Managem planned to start gold production in Senegal in 2025, as part of its Bamouk West African assets.
The same year, the company expects to double its copper output with the beginning of production at its Tizert mine in Taroudant, southern Morocco. The mine has an estimated reserve of 615,000 tonnes of copper and a potential annual production of 28,000 tonnes, according to the company’s website.
The company also signed in 2022 a seven-year deal to supply French carmaker Renault with 5,000 tonnes of low-carbon cobalt sulfate annually starting from 2025. The deal is part of Managem’s strategy to position itself as a leading supplier of sustainable cobalt for the global EV market.
Managem’s announcement comes amid a surge in demand and prices for metals, especially those used for green technologies, such as copper and cobalt. According to the World Bank, the global demand for these metals could increase by 500% by 2050, driven by the transition to a low-carbon economy.
The Moroccan government has also been supportive of the mining sector, which accounts for about 10% of the country’s GDP and employs more than 40,000 people. In 2020, the government launched a new mining strategy, aiming to increase the sector’s contribution to GDP by 50% by 2030 and create 30,000 new jobs.
Managem’s expansion plans reflect its ambition to become a regional leader in mining and a global player in the green economy. The company’s vision is to create value for its shareholders, customers, employees, and communities while respecting the environment and social responsibility.
Source: Reuters
