BAGHDAD -
Iraq ranks second among the largest phosphate reserves in the world. The reserves in Iraq's western desert are estimated at more than 10 billion tons;
This means that it retains 9% of the total global reserves of this substance, according to the Iraqi Geological Survey.
Morocco comes in first place with reserves of 70%, China comes with 5%, then Syria and Algeria with 3% each, followed by Russia, South Africa, the United States, Egypt and Jordan with 2% for each country, and Peru is at the bottom of the list of phosphate reserves with 1% ".
Several questions about the importance of industrial phosphate wealth and their answers in this economic report.
Saleh reveals a large investment file to rehabilitate the General Phosphate Company, but it is currently suspended (Al-Jazeera Net)
How much are the phosphate plants in Iraq and their production capacity?
Ihsan Ali Saleh, Assistant General Manager of the General Phosphate Company, says that the chemical complex's plants - which was established in 1978 on an area of 3 million square meters with an initial contract of one billion dollars - includes plants for the production of phosphate fertilizers as a final product, including plants for extracting ores from the mine, ores concentration, and acid Sulfuric, phosphoric acid, industrial service units, fertilizer plants, ammonia and fluorine salts, and the trading unit.
These plants are designed - according to Saleh - to produce one million and 250 thousand tons annually of mono-ammonium fertilizer and "super phosphate", and compound fertilizers as a final product. An area of 50 square kilometers contains a reserve of more than 700 million tons. The main ore of phosphate contains 20-22% of phosphorous pentoxide.
Filling of compound phosphate fertilizers in the bags designated for them in a factory in Anbar (Al Jazeera Net)
Is there a government orientation or plans for the State Company for Phosphate Investment?
Regarding the government’s directions for the optimal exploitation of phosphates, Saleh talks about a continuous effort to rehabilitate the company’s factories that have completely stopped working and producing until now, due to the destruction and sabotage they were subjected to by the Islamic State in 2014.
Saleh revealed to Al Jazeera Net about preparing an investment file to rehabilitate the company and its laboratories, but the matter was waited until some amendments were made to the mineral investment law to suit the nature of modern investment.
Al-Halbousi attributed the suspension of the investment process of phosphate factories due to the Corona pandemic (Al-Jazeera Net)
Why wasn't the contract signed with the Czech and Turkish companies to rehabilitate Al Qaim plant started?
The Deputy Chairman of the Anbar Investment Authority, Abdul Latif Al-Halbousi, reveals the reason for the suspension of the contract for the rehabilitation of phosphate factories signed between the Ministry of Industry and Minerals, represented by the General Phosphate Company with the Czech and Turkish companies, in April 2020.
Al-Halbousi tells Al-Jazeera Net that the Corona pandemic is the main reason for stopping the investment opportunity to rehabilitate these factories, as is the case with all countries of the world that stopped construction and investment operations due to Covid-19.
He added that this operational contract falls under the jurisdiction of the Ministry of Industry and Minerals under the effective Industrial Investment Law No. 22 of 1997, based on the principle of qualifying and operating production lines while ensuring the rights of employees.
Al-Halbousi pointed out that moving the contract is through the investors with the central government agencies, revealing that the Ministry of Industry has proceeded with this law with most of its industrial companies and laboratories.
Al-Rawi identified several reasons for the delay in phosphate investment, including foreign interventions in the Iraqi economic decision (Al-Jazeera Net)
What are the reasons for the reluctance of investment operations in the phosphate industry?
In parallel, there are a number of reasons and factors that impede industrial investment in phosphates, identified by the economic academic Ahmed Al-Rawi, including the obsolescence of production lines in phosphate plants and their damage as a result of attacks by armed men.
Speaking to Al Jazeera Net, he added that the Phosphate Company's loss of a lot of its technical staff with high industrial experience as a result of the amended retirement law in 2019 is another reason hindering the development of phosphate plants, and he added to it the political factor that stands - according to him - against the success of any investment, as well as Foreign and regional interventions in the Iraqi economic decision.
Al-Dujaili: Investment in phosphates provides one trillion and 400 billion dollars for Iraq (Al-Jazeera Net)
How much can phosphate investment yield to Iraq?
Regarding the financial returns from the investment of phosphates, consulting engineer Fouad Al-Dujaili explains that production reached more than one million tons annually of fertilizers in the eighties of the last century, noting that if the price of a ton of crude phosphate was calculated, it rose from 60 dollars last February to 152 dollars During July 2021, this will generate huge amounts of money for the budget, given that the reserve is estimated at about 10 billion tons, and at an average price of $ 140 per ton, the reserve stock will reach a value of one trillion and 400 billion dollars.
Al-Dujaili added to Al-Jazeera Net that the extraction of phosphate at a rate of 100 million tons annually, at a selling price of 140 dollars per ton, will save 14 billion dollars, which constitutes from 9% to 12% of the volume of the general budget of Iraq.
Al-Dujaili also stresses the need for optimal exploitation of phosphate in industry and agricultural derivatives inside Iraq, with the surplus being exported abroad.
Al-Dujaili added, however, that the price of DAP (abbreviated as diammonium phosphate) is the most widely used phosphorous fertilizer in the world, as the price of a ton rose from $325 to $705, which constitutes a financial return equal to 4 times the price of a ton of raw phosphate.
Heavy equipment cemetery in the phosphate mine in Akashat in Anbar (Al Jazeera Net)
Which is optimal?
Selling raw materials from phosphates or industrial and agricultural derivatives thereof?
About this, the academic and industrial consultant, Muayyad Kased Jalhoum, answers that the return of the Al-Qaim plant for the production of phosphate agricultural fertilizers - the largest chemical plant in Iraq and the Middle East - will produce 400,000 tons annually.
Jalhoum adds to Al Jazeera Net that this may achieve financial returns of about 282 million dollars, which can be increased or decreased, according to the needs of global markets, while the expected total annual income from this activity is expected to be more than 400 million dollars, by adding the production of phosphoric acid and other mining products. Up to 9 different items, some of which are rare.
Jalhoum supports the production of agricultural and industrial derivatives of phosphate, which is large as a result of the weak annual production of crude phosphate.
What is the nature of investment in Anbar and the government's ambitions there?
Regarding the work of the local Anbar Investment Commission - according to Al-Halbousi - it operates according to the amended Public Investment Law No. 13 of 2006, which includes different sectors, and within the financial limits of no less than 250 thousand dollars and not more than 250 million dollars.
He added that many local and foreign companies have applied to invest in the governorate under this law, and the number of different investment opportunities has reached 225, in addition to many requests in various sectors in the process of completing the requirements.
Al-Halbousi concluded his speech that Anbar is a fertile ground for all kinds of investment as a result of the availability of all the ingredients, revealing that the current local government is in the process of preparing an investment map according to a five-year plan, in order for the investment to rise to the level of ambition.