Morocco to Dissolve Struggling State-Owned Mining Companies Amid Economic Reforms

The Ministry of Economy and Finance is determined to accelerate the process of liquidating public companies and institutions on the verge of collapse. According to challenge.ma, the National Treasurer was just preparing to take action before the coronavirus crisis. In this regard, the Société d’exploitation de Pyrrhotine de Kettara (SEPYK), an operator of a mine that has been closed since 1982, was liquidated a few weeks ago. After SEPYK, it is the turn of another public company - also close to the mining sector - that is on the hot seat.

According to the same media, it is the Société nouvelle de réalisations industrielles et commerciales (SONORIC), which was created in 1978 to produce large-caliber plastic packaging (called Big-Bag) for the primary use of its parent company, the Société anonyme chérifienne d’Études Minières (SACEM). It operates several manganese mines in Morocco and generates a turnover of 200 million dirhams entirely for export. This state-owned parent company is 57% controlled by ONHYM (National Office of Hydrocarbons and Mines), the public operator in charge of the development, exploration and exploitation of mines in Morocco.

SONORIC, after a few years of existence, undertook to expand its field of activity by launching the manufacture of matches using manganese dioxide as a raw material, supplied by its parent company. Faced with the cash flow difficulties of the SACEM subsidiary since 2000, its public shareholder decided to put it into liquidation.

Other very unprofitable companies could suffer the same fate in the coming days, especially in these times of covid-19 during which the national economy is severely tested.