FOR PROSPERITY. Phosphate in support of human development and regional prosperity. Euromed-CDC Contact:

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1 RAPPORT EUROMED-CDC FOR P PROSPERITY Phosphate in support of human development and regional prosperity Euromed-CDC Contact: info@euromed-cdc.org

2 Phosphates : a Strategic Issu PUBLISHED: January 2017 UNDER THE DIRECTION OF LATIFA AÏT BAALA RÉDACTION: Latifa Aït Baala Frédéric Truillet Géraldine Van Leeuw Claude Vandermeuler Tazo Tania Muller Ham Mandoza Pietroski Hassan El Bouharrouti Samantha Antonio Pedro HOME PAGE: The longest conveyor in the world transports phosphate from the mines in Bou Craa to the port of El-Aaiún This report may be used freely, in print or online format. For comments or questions about this report, please contact info@euromed-cdc.org.

3 e for the World s Population Phosphorus for which the chemical symbol is P is the staff of life and essential for feeding the world s population. The reason is that farmers use phosphates as fertilizer. Given the world s ever-expanding population, worldwide agriculture and secure food supplies depend entirely on the phosphates used to manufacture chemical fertilizers. Global population growth and the need to optimize use of arable land make phosphates a strategically critical asset. A shortage of phosphates could lead to widespread famine. Morocco is the world leader in the phosphate and phosphate derivatives market. The country owns 75% of the world s known reserves. Moroccan phosphates are known for their exceptionally high phosphorous content. China and Morocco account for two-thirds of global production. Morocco is the number two producer of phosphates in the world, behind China, and the number one exporter of rock phosphates and phosphoric acid. OCP exports to every continent, shipping to around forty countries worldwide. In short Morocco is one of the largest fertilizer producers in the world. Morocco has four deposits of phosphates. The Khouribga deposit is home to the largest open-pit phosphate mine in the world. Contrary to the allegations of WSRW the Phousboucraa site, located eighty kilometres from Laayoune, accounts for only 1.7 percent of Morocco s proven reserves USGS. So why are these lobbyists trying to render illegitimate Morocco s phosphate operations in the Southern Provinces? Natural resources have always been cause for envy and phosphates are no exception to the rule. Given that the demand for and use of phosphates will continue to grow and some specialists predict that fertilizer prices will skyrocket by five hundred to one thousand percent in the next twenty to thirty years, we can begin to understand the motivation of these lobbyists and their sponsors. In 2015 a dozen companies, more particularly from Canada, New Zealand and Venezuela, imported phosphates from the Southern Provinces. According to OCP s annual report, 1.41 million metric tons were exported in 2015 at an estimated value of million US dollars. Two companies stand out here. They alone account for 64.5 percent of phosphate sales for the whole year. These two Canadian companies are Agrium Inc. and Potash Corporation. This report aims to investigate how phosphate resources are used to benefit the population. Unfortunately, the politicization of exploiting natural resources on the part of Morocco s opponents, is detrimental to local populations. This report draws an overview of how the phosphate s resources are exploited to the advantage of the population. Unfortunately, the politization of those exploitations by Marocco s opponents has a bad effect and penalizes the local people.

4 A humanitarian drama on Europe s doorstep For over forty years, the Sahrawi people living in camps in Tindouf, Algeria, have been held hostage to a conflict that is much bigger than them. For too many years these people, who fled the violence during the period of Spanish colonization have been used as a weapon and bargaining chip to justify a number of demands. The refugee situation is exploited to obtain international humanitarian aid. However despite the fact that a census is a statutory obligation for Algeria, the responsible office of the United Nations has never been able to perform a census of the refugee population which is what would be needed to determine the amount of international aid, While eighty percent of the Sahrawi population live in Western Sahara, Sahrawi refugees in camps in and around Tindouf live in one of the driest deserts in the world. Their living conditions are extremely difficult and often inhumane, as the Australian journalist, Violeta Ayala, from Reporters Without Borders has revealed. We originally went there to work on the problem of separated families. But during our stay we witnessed scenes that were naked slavery. Baba Sayed, brother of the founder of the Polisario Front agrees wholeheartedly. On the ARSO website he remarked, WHAT EXACTLY IS A REFUGEE? ANY PERSON WHO, What is a refugee? owing to a well-founded fear of persecution for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, unwilling to avail himself of the protection of that country or who, not having a nationality and being outside the country of his former habitual residence as a result of such events, is unable or, owing to such fear, unwilling to return to it. fills the bill. Article 1, the 1951 Convention Relating To The Status of Refugees and its 1967 Protocol. The Convention imposes obligations on the states party to the agreements. However, Algeria does not uphold its statutory obligations. Algeria has always refused to allow a census of the refugee populations. Algeria has said the census depends on a comprehensive political resolution of the Saharan problem on Algeria s own terms, namely, the granting of independence to the Sahara. Such an attitude clearly demonstrates the extent of Algeria s claimed neutrality in this matter.this attitude is nonsensical and entirely contrary to the United Nations mission. Indeed, The work of the High Commissioner shall be of an entirely non-political character; it shall be humanitarian and social and shall relate, as a rule, to groups and categories of refugees. Article 2 of the Statute of the Office of the United Nations High Commissioner for Refugees.

5 IN THE ABSENCE OF A CENSUS, A WAR OF NUMBERS Estimates of the Sahrawi population in the Tindouf camps according to various authorities On 14 December 1975 and according to the International Federation of the Red Cross, 20,000 On 21 December 1975 and according to the United Nations, 10,000 to 12,000 On 8 March 1976, according to a letter from the Algerian Minister of foreign affairs sent to the United Nations, 15,000. On 22 November 1976 and according to the Algerian authorities 50,000 On 22 November 1976 and according to the Algerian authorities from 165,000 to 200,000 In 2004 and according to Algeria 90,000 Unable to perform a census as everyone was and in the wake of various investigations, international and European institutions, such as WFP, UNHCR and ECHO, agreed to reduce the figures Algeria and the Polisario front had submitted to them while recognizing that the final figure was still high, particularly given the large number of persons who had returned to Morocco. The issue of the census was first brought up in Rabat and I raised this question in Tindouf and Algiers, where local authorities told me that the UNHCR is satisfied with the figures provided by the host country with regard to the number of refugees. This makes it possible to establish the amount of humanitarian aid. To go further than that would entail unjustified politicization. Christopher Ross, the Secretary General s Personal Envoy for Western Sahara at a press conference in New York, on 28 November 2012 stated, New York, press confer- In its resolutions involving refugees, the General Assembly of the United Nations states unequivocally, The General Assembly recognizes the importance of early establishment of effective registration systems and censuses in order to ensure protection, while quantifying and assessing food provision and humanitarian assistance needs and implementing appropriate lasting solutions.

6 Colossal amounts of international humanitarian aid In addition to international and European institutions, numerous states, non-governmental organisations and movements in support of the Sahrawi people grant staggering amounts of aid that never makes it to the people for whom it is intended. Unfortunately, these people continue to live in extremely difficult conditions. According to the Norwegian Support Committee for Western Sahara, Norwegian humanitarian assistance in refugee camps in Algeria currently amounts to several million Norwegian kroner per year, no/a50x246. EUCOCO, the European Coordination Conference for Solidarity with the Sahrawi People, brings together representatives from support committees from nongovernmental organisations and all the countries in Europe. It defines the types of political and material support to be sent to the Polisario movement with food and in order to manage distribution of food coupons. Water is one of these refugees main sources of concern. So the Commission helps ensure that a sufficient supply of safe drinking water is made available to them. There ensued projects designed to connect camps to water sources directly via networks of pipelines and by trucking in water. The UNHCR built two wastewater treatment stations, in order to guarantee a supply of clean drinking water. The Commission also financed supplies of essential medicines and training for local medical personnel through Medico International in order to improve management capacity and reduce the refugees consumption of antibiotics. In 2016 the humanitarian aid which the European commission granted enabled the Danish Refugee Council and Triangle Génération Humanitaire to launch subsistence activities. The aim was to improve refugee families resilience and to reduce their dependence on humanitarian aid. factsheets/algeria_fr.pdf Over the years, the European Union has granted ten million Euros in aid every year. This is a significant amount, yet small compared to the colossal sums granted to the Polisario movement. One needs only to consider the Algerian government s contribution. Algeria alone has surpassed the aid that the European Union provides. This is increasingly rubbing the Algerian population up the wrong way. In 2016, owing to a lack of transparency in managing humanitarian aid and failure to carry out a census of the refugee population, the European Commission decided to reduce funding to nine million Euros. Since 1993, the European Commission has contributed a total of 222 million Euros in funding. In 2016 the Commission made investments designed to improve the living conditions of Sahrawi refugees. Food aid remains an important component of this funding. More than five million Euros were allocated to the United Nations World Food Program and Oxfam, in order to ensure that these refugees are supplied

7 Humanitarian aid agreements granted by DG Echo in 2015 New contracts signed in 2015 Source, CROIX-ROUGE-ES SPAIN NGO ALGERIA- ECHO/-NF/BUD/2015/91004 UNHCR-CH SWITZERLAND UN ALGERIA ECHO/-NF/BUD/2015/91006 OXFAM-BE BELGIUM NGO ALGERIA ECHO/-NF/BUD/2015/91001 TRIANGLE-FR FRANCE NGO ALGERIA ECHO/-NF/BUD/2015/91005 TRIANGLE-FR FRANCE NGO ALGERIA ECHO/DRF/BUD/2015/91021 WFP-IT ITALY UN ALGERIA ECHO/-NF/ BUD/2015/91002 WFP MI-DE GERMANY NGO ALGERIA ECHO/- NF/BUD/2015/91003 Rehabilitation of water and sanitation system and strengthening of protocols for maintenance, cleaning, and promotion of hygiene in Rabouni's National Hospital in the Sahrawi refugee camps. Algeria. Assistance to Sahrawi refugees in camps in Tindouf, Algeria Food assistance program for Sahrawi refugees Assistance to vulnerable Sahrawi refugees living in the camps to the south of Tindouf in Algeria Emergency response and reconstruction for Sahrawi people affected by torrential rain in the camps located in southwestern Algeria - Tindouf Region Assistance to Refugees from Western Sahara Facilitation of Capacity Development measures for personnel at the Saharawi Ministry of Health and provision of drugs and medical consumables to the Saharawi refugees in Tindouf camps 340,000 1,550,000. 2,600, , ,000 3,800, ,000 THIS AMOUNTS TO A TOTAL OF 10,425,000 GRANTED TO NON-GOVERNMENTAL ORGANISATIONS THAT HAVE ADOPTED A POLITICAL STANCE WHEN THEY WERE SUPPOSED TO BE CONDUCTING HUMANITARIAN WORK.

8 Massive misappropriatio There have been numerous reports about large-scale misappropriation of humanitarian aid. There ensued a scandal when independent reports by WFP, OLAF, the UNHCR, and the Red Cross revealed that mass misappropriation had been going on for decades came up in the UNHCR s report. The WFP highlighted some problematical questions about how to handle the census of a given refugee population, donors unclear statements, insufficient auditing and accountancy, amounts not reaching the level of those provided by humanitarian aid, disrupted delivery of humanitarian aid and so forth. UNHCR Inspector General s Office, Inquiry Report INQ/04/005, Geneva, 12 May 2005 Reliable sources relate that diversion of humanitarian aid started in the port of Oran and also in the camps. Goods that came into the wrong hands turn up on markets, particularly those of Algeria and Mauritania. The parties responsible for diverting humanitarian aid were from Algeria, the Polisario Front, the Algerian Red Crescent and the Sahrawi Red Crescent. The UNHCR has flagged potential errors in population censuses, as in 2003 when the American Red Cross reported 80,000 refugees. In 2004 the Red Cross revised its estimate to 165,000 - paragraph 27. The estimate is absurd. This is particularly true, since at the time refugees were fleeing the camps. In addition to this, the UNHCR expressed concern about population censuses based on multiple declarations as well as declarations made by one single official, as when 19,984 people reported 106,213 individuals as family members, but with no means of backing up the figures. The UNHCR regretfully noted that the WFP The most striking aspect of this inquiry is that many of the issues, such as irregular refugee numbers, no registration, inexistent CRA accountability, lack of monitoring had already appeared in 1977 but notwithstanding, the same issues persist. Paragraph 63. Investigation report for WFP inspection, World Food Program OSDI/592/05, OLAF Report, European Anti-Fraud Office, OF 2003/521 In October 2003, DG ECHO related to OLAF its suspicions that there was misappropriation of huge amounts of funds destined to aid refugee camps. OLAF set about investigating the matter on two fronts. They would first have to determine the exact number of refugees, then establish proof of fund misappropriation by members of the Polisario Front and within Algeria. In its conclusions, OLAF indicated that the initiative had made it possible to establish a reliable figure for refugees in need of assistance, which the Algerian government and Polisario Front had made impossible Vue générale des Cam until now, despite the UNHCR s repeated attempts to organize a census of the population. As this figure was well below that given by Algeria and the Polisario Front, it therefore follows that The Commission has overpaid ever since assistance first began. Moreover, the investigation made it possible to reasonably conclude that a significant proportion of the humanitarian aid, funded in part by the European Commission, has been diverted. One of the reasons that made diversion possible is that the number of refugees has been overestimated. The board of inspectors recorded similar issues which

9 n of humanitarian aid A European Parliament resolution of April 29, 2015 observes that refugee numbers form an integral part of decisions regarding the discharge of execution of the general budget of the European Union for the financial year 2013, Section III Commission and executive agencies (2014/2075(DEC)), section on Possible embezzlement of European Union humanitarian and development aid funds. OLAF drafted a report on the humanitarian aid granted to the Sahrawi refugee camp of Tindouf in Algeria OF 2003/526. The organisation called on the Commission to clarify the measures taken in response to the findings of that report and notes that, according to a UNHCR inquiry report, INQ/04/2005, non-registration of a refugee population for such a prolonged period constitutes an abnormal and unique situation in the UNHCR s history. The organisation urged the Commission to ensure that the Algerian or Sahrawi individuals incriminated in the OLAF report no longer have access to aid funded by Union taxpayers. It further calls on the Commission to re-evaluate and adapt Union aid to the actual needs of the population concerned while ensuring that the ps de Tindouf interests and needs of the refugees are not harmed since they are the parties most vulnerable to any possible irregularity. General view of Tindouf camps In July 2016, Christos Stylianides, European Commissioner for Humanitarian Aid and Crisis Management, announced that aid would be reduced to adequately meet refugees needs. In 2015 numerous EU funded projects were implemented in the camps in order to cover Sahrawi refugees basic needs together with decent living conditions. Christos Stylianides added that in the surrounding area and in the Sahel countries, millions of people still do not live in accordance with minimum humanitarian standards.

10 PHOSPHATE MININ History of the Bou Craa mine A company with lasting roots in the community LAÂYOUNE MAROC phosphate reserves discovered in the region colonized by Spain subsequent to Morocco s other reserves. The Spanish geologist Don Manuel Alia discovered these reserves in Bou Craa. BOU CRAA July the Empresa Nacional Minera del Sahara or National Mining Company of the Sahara, was founded to operate mines held by the Spanish state-owned company INI or Instituto Nacional de Industria i.e. the National Institute of Industry. May the company was renamed Fosfatos de Bucraa S.A., also known as Fosbucraa or Phosboucrâa the Spanish began exploiting the mines. They employed many Spaniards in the mines and only four percent of locals, dating from Spanish colonial times. 18 November After signing the Madrid Accords, the Cortes (Spanish Parliament) adopts a bill authorizing the Spanish Government to decolonize and cede these territories OCP bought up sixty five percent of Phosboucraâ shares from the INI and launched a joint mining operations venture complete shutdown of the mines renovation programmes, notably large scale investments OCP acquired Spain s remaining thirty five percent Phosboucraâ shares. Phosboucraâ had experienced financial losses since its foundation. In 2008 growth resumed after several years of financial losses Phosboucrâa had become a well managed OCP subsidiary with sound financial standing, since its turnaround in In 2015, OCP s turnover was billion Moroccan Dirhams, equivalent to 4.75 billion US dollars, versus billion Moroccan Dirhams, equivalent to 4.13 billion US dollars in Phosboucrâa accounted for about 7.5 percent of OCP s total revenues. An enormous investment programme proceeded as planned, with billion Moroccan Dirhams, equivalent to billion US dollars released in An enormous investment prog with MAD billion (USD1.

11 G IN THE SAHARA ram is proceeding as planned, 418 billion) released in 2015.

12 Ca STATUS OF PHOSPHATE RESER Phosphate mining goes on a single site in Bou Craa. The company which does the mining is Phosboucraa S.A. It lies eighty kilometres East of the city of Laayoune. This site accounts for about 1.7 percent of Morocco s national phosphate reserves. Source: United States Geological Survey (USGS) Jorf Lasf Safi Co G The Bou Craa region holds an estimated 1.1 billion square metres of geological phosphate resources. Phosboucraa extracts between 2.5 and 3.0 million square metres of these resources per year, approximately 0.3 percent of phosphates underground. At current extraction rates, the region contains the equivalent of approximately three hundred years of recoverable phosphate reserves. Laayoune ±1,7% Convoyeurs Boucraa

13 VES sablanca ar nvoyeurs Khouribga 43% Morocco holds seventy three percent of the world s known phosphate reserves, and the mine in Bou Craa represents only 1.7 percent of Morocco s national phosphate reserves. antour Meskala 37% Morocco has a phosphate mining capacity of thirty three million metric tons. In 2015, the country extracted 30.3 million metric tons and in 2014, 27.4 million metric tons. 18% In 2015, 30.3 million metric tons were extracted. In 2014, 27.4 million metric tons were extracted. Source: OCP annual report 2015 Axe intégré Khouribga - Jorf Lasfar Axe intégré Gandour - Safi Axe intégré Phosboucraa - Laayoune Unités de production Sites miniers ports phosphatiers Pipeline Convoyeurs % % roches de phosphates

14 LEGAL EXPLOITATION OF NATURAL RESOURCES The so-called Western Sahara is a disputed territory. As such it is a bone of contention with the Polisario Front and Algeria. It is on the United Nations list of non-self-governing territories under Moroccan administration. Administration of these territories is subject to the Charter of the United Nations. More specifically: More specifically, it is Phosphates de Boucraa S.A. who manage the Bou Craa mine. Phosboucraa is a wholly-owned subsidiary of OCP Group. Its main activities include the extraction, enrichment, transport, and marketing of phosphate ore from the mine in Bou Craa. The Bou Craa mine s annual production capacity is approximately 3 million metric tons. This represents just 1.7% of Morocco s phosphate reserves. OCP employs 23,000 people. With nearly 2,300 employees, Phosboucrâa is the largest employer in the region. Today, 80% of employees are recruited locally, up from just 4% in The OCP Foundation and the Phosboucrâa Foundation were also created to advance OCP Group s social and societal commitments. Their main missions are to promote education and training, improve youth employability, promote and strengthen entrepreneurship, reduce poverty, promote socio-economic development, increase access to healthcare, promote sociocultural activities and heritage conservation and support food security programmes. In February 2016, the OCP Group announced through its subsidiary Phosboucraa and the Phosboucraa Foundation, that a large-scale development project would be launched, namely, the Foum El Oued Technology Cluster at Laayoune. It will be home to Mohammed VI Polytechnic University Laayoune, which will be geared towards research, innovation, and training in the scientific and technical fields. It will include clusters dedicated to youth skills development and to the promotion of entrepreneurship, as well as an Industrial Skills Centre for training related to the phosphates industry. This will help OCP Group and its subsidiary Phosboucrâa deploy their industrial strategy, while at the same time strengthening the local and regional economies. The Foum El Oued Technology Cluster at Laayoune will be built in two phases under a two billion investment that in US dollars would be 199 million. The project is scheduled for completion by This means that Phosboucrâa is a major contributor to the economic viability and well being of the region s inhabitants. Legality of Phosboucrâa s Activities Palacio y Asociados came up with a Legal Opinion on the Western Sahara, dated 29 July Its full title in English is, The Legality of Phosboucraa Corporation s Phosphate Resource Development in the Western Sahara». The platform for the legal opinion was the so-called Phosboucrâa report that KPMG came up with on 25 July We reproduce it below, «We conclude that the activities of Phosboucrâa in the Western Sahara comply with international legal standards which the United Nations established when drawing up its Charter and the resolutions of the General Assembly» on Page 21.

15 Skills Center Laâyoune Primary School Laâyoune Primary Class Laâyoune Foot Stadium Al Massira Laâyoune Interactive Training Center Laâyoune

16 NATURAL RESOURCES AN THE INTERNATIONAL PRINCIPLES GOVERNING ACTIVITIES RELATING TO MINERAL RESOURCES IN THE SO-CALLED NON-SELF-GOVERNING TERRITORIES Article 73, Charter of the United Nations, runs as follows, Members of the United Nations which have or are assuming responsibilities for the administration of territories whose peoples have not yet attained a full measure of self-government, recognize the principle that the interests of the inhabitants of these territories are paramount. They accept as a sacred trust the obligation to promote to the utmost, within the system of international peace and security established under the present Charter, the well-being of the inhabitants of these The Corell Opinion of 12 February 2002 While the specific contracts which are the subject of the Security Council s request are not in themselves illegal, under Article 73 of the Charter of the United Nations, prospecting and mining activities must respect the principle of primacy for the interests of the population. This opinion serves as a precedent for international and European bodies. It was referred to in the judgment of the European General Court delivered on 10 December 2015, in the case opposing the Polisario Front to the Council of the European Union, as well as in the opinion of the Advocate General of the Court of Justice on 13 September 2016, following the appeal brought by the Council of the European Union to dismiss the Polisario Front s claims. On appeal, the European Court of Justice confirmed this dismissal in its judgment delivered on 21 December 2016.

17 D INTERNATIONAL LAW EU Morocco Agreement: the ECJ ends the Polisario Front s exploitation of the European judiciary for political gain (Case C-104/ 16 P) On these grounds, the Court (Grand Chamber) declares and decides that: 1. The European Court decision of December 10, 2015, Polisario Front v. Council (T-512/12, EU:T:2015:953) is anulled. 2. The claims of the Front populaire pour la libération de la saguia-el-hamra et du rio de oro (Polisario Front) are dismissed as inadmissible. 3. The Front populaire pour la libération de la saguia-el-hamra et du rio de oro (Polisario Front) shall pay its own costs as well as those incurred by the Council of the European Union. On 21 December 2016, the European Court of Justice in its Grand Chamber ruled in favour of the trade agreement between the European Union and Morocco. In so doing it followed on the heels of the Council of the European Union s appeal relating to the judgment which the Eighth Chamber pronounced on 10 December This was in the wake of a suit brought by Polisario Front annulling the Council s decision on 8 March to finalize an agreement on the reciprocal easing of trade restrictions on agricultural and fishery-derived products. The Court not only annulled the judgment but also declared the Polisario Front s suit inadmissible. Furthermore, the Court ordered the Polisario Front to bear its own costs as well as those which the Council of the European Union had incurred. In other words the Court fully granted the Council s request, putting an end to an episode of Polisario Front manipulation and exploitation of Europe s legal community for political ends. Despite the Polisario Front s wilful misinterpretations of this judgment, the European Court of Justice is not responsible for addressing issues that fall under the jurisdiction of United Nations bodies. The European Court of Justice does not accord the Polisario Front any legitimacy whatsoever. The agreement between Morocco and the European Union remains in full force therefore and will continue to have effect. It is in the mutual interest of all the European Union member states that supported the Council s and Morocco s approach. The decision of the Council of the European Union on implementation of the Agreement on Agriculture between the European Union and Morocco shall remain in force. Both parties are reviewing the possible implications of the Court s judgment and will work together on any issue relating to its implementation in the spirit of the privileged partnership between the European Union and Morocco with all the mechanisms set up to this end. Both parties confirm the vital nature of this privileged partnership and will work actively on its implementation in all areas of interest.

18 THE LEGALITY OF FOREIGN A In the face of the incessant activity on the part of the pro-polisario Front lobby designed to dissuade foreign companies from investing in the Sahara by any means it can, companies have decided to opt for total transparency. They will be doing this by providing information about everything they do and anything which confirms the international legality of their actions. All the internationally renowned firms consulted have attested to the legality of everything that is going on in the shape of international contracts entered into with foreign companies in the Sahara.

19 CTIVITIES AND COMPANIES POTASH CORP (Canada) The Potash Corporation of Saskatchewan Incorporated usually known as. Potash Corp. is the largest importer of phosphates from the Sahara. The corporation has a phosphoric acid plant in Geismar, Louisiana, in the United States where the phosphate ore from the Sahara is imported and processed. As indicated in the title, Potash Corp is based in Saskatchewan, Canada and is listed on the Toronto Stock Exchange and the New York Stock Exchange under the heading TSX POT. In 2015, the corporation imported 474,000 metric tons to the tune of 56.5 million US dollars. In 2013, the figure became 710,000 metric tons. The Canadian corporation have stated their position on the Sahara several times in a document entitled, «Phosphate Rock from the Western Sahara». They published the Sixth Edition in November Report, Phosphate Rock from the Western Sahara, Potash Corp, November 2016 «In the absence of a permanent resolution, a distinction must be drawn between political issues and the legal and other responsibilities placed on companies operating in the region. Neither the United Nations nor any other competent legal authority has concluded that the production and use of phosphate rock from the Western Sahara is in violation of international law.» The statement is on page 2. «OCP have launched a proactive campaign for the benefit of the local people. What is more important is that the organisation is making significant economic and social contributions to the entire region. As a result, we believe those who choose to make any kind of political statement regarding OCP are effectively penalizing Sahrawi workers and their families and communities.» The statement is on page 9.

20 Canada s AGRIUM Inc. Agrium is a producer and worldwide distributor of nutrients for agricultural and industrial markets. It is a Canadian corporation. The company is listed on both the Toronto Stock Exchange and the New York Stock Exchange. In 2011, Agrium Inc. signed a contract with OCP to import phosphates from Morocco. The first shipment arrived at the port of Vancouver on Canada s west coast in October In 2014, Agrium was the largest importer and in 2015 imported 437,000 metric tons worth a total of 1.9 million US dollars.. Pro-Polisario lobbies such as WSRW regularly contact Agrium about its imports and its legal understanding of the purchase of rock phosphate from the Sahara. Agrium consistently responds that it, «does not take a political position on issues related to disputed territorial claims». The company has systematically recalled its «positive influence» in the region. We reproduce below the conclusions of the law firm Norton Rose Fulbright, Canada. It is an independent report dating from It bears the title «Human Rights Assessment Report, Agrium Phosphate Rock Supply from the Western Sahara» The report analyzes the connections between human rights and an Agrium subsidiary s mining of phosphates from OCP s subsidiary, Phosboucrâa, in the Western Sahara. «The United Nations guiding principles do not compel Agrium to end its supplier relationship with OCP and or Phosboucrâa and could continue to obtain phosphate from OCP and or Phosboucrâa.» The statement is on Page 12, «OCP s governance, policies and operations are in conformity with the requirements of Agrium s Supplier Code and international standards, particularly in the areas of labour and working conditions, forced labour, child labour, occupational and community health, safety and security and anti-corruption. The Review concludes that there are no negative human rights impacts related to these areas of OCP/Phosboucrâa s operations. OCP/Phosboucrâa s internal policies and processes mitigate any potential impact and risks.» The statement is on Page 39.

21 The United States KOSMOS ENERGY Kosmos Energy appeared on the scene in It is an oil and gas exploration and production company. Kosmos holds rights to explore the Boujdour Maritime block, located approximately seventy kilometres off the coast of the Western Sahara. Kosmos has held these rights since 2006, thanks to a petroleum agreement with the Office National des Hydrocarbures et des Mines, the acronym for which is ONHYM. In July 2011, the authorities renewed the licence for the Boujdour Maritime block which Kosmos held. «Some have questioned the legality of our activities in the region. Although we are not of the same opinion we do respect their right to express their views... Kosmos current activities are focused solely on prospecting and do not involve the removal of resources. We also firmly believe that the 2002 United Nations Legal Opinion on Resource Development in the Western Sahara lays out a clear path for resource development intended to co-exist with the political process... We believe responsible resource development can and should proceed in parallel with the UN-led discussions on the region s future.» This statement is stated 26 August 2015 and the venue was Seth, Luxembourg. The Community Relations Coordinator, Dakhla For the sake of complete transparency in this matter, in correspondence dated 7 September 2016, Kosmos sent a letter to the Norwegian Support Committee for the Western Sahara. In the letter, Kosmos indicates that anyone can view all the correspondence on the website

22 THE HIDDEN FACE OF THE WESTE There are powerful lobbies hanging out there. Take the Western Sahara Resource Watch. Its acronym is WSRW. These people seem surprised that OCP does not disclose the opinions of the international business firms they work with. Without international firms, the business world as we know it would not be the same. This is particularly true with respect to international law, the legal and financial security of investments, markets, and transactions. It is regular business practice on the international stage. Our resource watch lobby on the other hand is a powerful one with enormous financial resources. Like so many others, it exists in a nebulous grey area where that convenient tag of «non-governmental» serves as cover for manipulative misinformation campaigns orchestrated in collaboration with Algiers. There can be no doubt that a well-oiled international network has been at work, promoting the pro-independence argument for over forty years. It was Libya that gave birth to it. After that Algiers took over the child. The question of the exploitation of natural resources in the Sahara is but a pretext. The last few years have seen it play a prominent role. A Norwegian whose name is Erik Hagen heads an organisation called the Støttekomiteen for Vest-Sahara We would call it in English, the Norwegian Support Committee for the Western Sahara. We know its acronym. The Support Committee is a powerful lobby that Erik Hagen placed on pillars. Each one of these is really a lobby that Erik Hagen himself directs, whereby each specialises in a particular field. Erik Hagen s organisation is an international network of activists, fighting an economic war against Morocco. They are doing so in cahoots with INDUSTRI ENERGI. It will not surprise you that this is a Norwegian union. One of the Norwegian support committee s most influential people is Eric Hagen Président WSRW its Brussels representative, Sara Eykmans. There is another organisation bearing the acronym SWS which means Solidarity with the Western Sahara. SWS heads an influential lobby together with another whose acronym is SAIH. The acronym stands for Norwegian Students and Academics International Assistance Fund. Erik Hagen runs another called the International Information Service. He does this via Sahara Update. After that we have the Australian Western Sahara Association known for short as the AWSA. A lady called Lyn Allison heads the organisation which spearheads political action with support from the Australian Workers Union or AUWS. The strategy of The Western Sahara Resource Watch is simple. They systematically approach all foreign companies that work or intend to work in Morocco in order to dissuade them from doing so. Even though

23 RN SAHARA CONFLICT AND THE they invariably receive the same response they continually harass corporations, political authorities and international institutions.the lobby systematically challenges Morocco s clients and partners but does not publish any of the responses to what they call «audits.» Is it Sara Eyckmans WSRW Brussels perhaps because these responses are not convenient for the organisation s leaders with their various intercontinental connections? Over the years, extremely powerful interest groups have been able to establish offshoots in the political media and legal landscapes, among others. Even the cinema world has been affected. Ask Javier Bardem and Pedro Almodovar! On the political and ideological scene, Libya and Algeria headed an all-out lobby for far too long. But then, in 1982, the Organization of African Unity recognized the SADR. It was in total violation of its own statutes and particularly Article 4. Article 4 has it that «Each independent sovereign African State shall be entitled to become a Member of the Organization.» However, the SADR is not a state and never has been. It is a territory that has been in dispute before the United Nations, since 1963 when Morocco requested that the area be added to the list of territories for Spanish decolonisation. This outright violation of the OAU Charter led Morocco to withdraw from the institution. Eric Hagen WSRW Brussels PIERRE GALLAND PRESIDENT OF EUCOCO Algerian diplomacy has remained dedicated to the promotion of the Polisario Front, a group committed to spreading a pro-independence message. In many countries, Polisario emissaries take up residence in Algerian embassies. Under the leadership of Algiers, the Polisario Front has benefited from the support of mainly Marxist and leftist movements and in particular from the Socialist International, in which it has observer status. This left-wing segment is particularly active among European and international institutions and has a strong presence in EUCOCO. The former Belgian Senator, Pierre Galant, heads this group. He receives a head of state s welcome in Algeria. The group has been continually striving to enhance citizen awareness through the organization of annual festivities in Tifariti, visits to the refugee camps in Tindouf, summer camps in Europe for children in the camps, etc. Other interest groups have also used the issue for unjust enrichment, acting essentially as profit-making organizations in the service of Algiers. The famous international lobbyists, Independent Diplomat, is the linchpin of the Polisario Front in New York and Brussels when it comes to the political and media landscapes. Today, even organizations as essential as universities have been infiltrated to such a degree that free inquiry is out of the question. The same can also be said of the Department of International Law at the Université Libre de Bruxelles which has become a real stronghold of Polisario separatists and their followers. More than ever Brussels, the capital of Europe, occupies a key place in Algiers approach to supporting constructive diplomatic and economic relationships between the European Union and Morocco. Sophisticated legal constructions allow powerful non-governmental organisations to pursue their aims under a label of independence, the protection of human rights or their own private reading of international law.

24 Phosboucrâa is investing in the future of the Sahara High operating costs; long-term reinvestments for phosphate beneficiation High operating costs mean longterm re-investment for the benefit of phosphates. Sustainable development of phosphate resources at the Bou Craa site requires extremely costly infrastructure. The extraction of Bou Craa phosphate is two and a half times more expensive than at the mines in Northern Morocco. This is due to higher equipment and maintenance costs and a shorter useful life of assets in a region that is characterized by severe weather and geographical constraints. OCP s continual efforts to operate the mine in sustainable fashion have necessitated substantial investment and operational expenditure of more than two billion US dollars for the period 1976 to For twentyseven of the thirty-four years, OCP incurred operating losses. All Phosboucrâa s revenue is reinvested in maintenance and development of the Bou Craa mine and strengthening regional socioeconomic activity. The phosphate seam at the Bou Craa mine is much deeper down which causes operational difficulties and increases production costs. Boucraâ Mine

25 Socioeconomic Benefits Phosboucrâa is the only private employer in the entire Sahara region. Its annual payroll is approximately 85 million US dollars. A total of 2,148 employees of whom 1,200 come from the region, with a clear and growing trend in the direction of local recruitment. In fact, 810 or 78% of the 1,043 new recruits between 2001 and 2011 are from the region. There is a strong commitment to recruiting senior executives locally. In 2003 there was only one local executive in general management but by 2012 the figure had jumped to nineteen. There is considerable investment in skills development, employability and a high quality of life for staff. Provision of benefits to employees and retirees, as well as to members of their families. There is likewise provision for socio-economic benefits for the 1,233 families of Phosboucrâa retirees and beneficiaries. Phosboucraâ s operations contribute to the development of local entrepreneurship and local job creation. Fifty local companies operate as subcontractors for Phosboucraâ, resulting in a further 450 indirect jobs. There are social benefits for employees and their families, three medical centres, four doctors and eighteen nurses external medical services two million US dollars worth of medical and dental expenses covered annually the best retirement benefits in the region a budget of 57 million US dollars allocated to socio-cultural projects in 2012 a sixty-two hectare residential complex for employees still at work and retirees ongoing construction projects relating to clubs and summer vacation resorts the Institute for Social Advancement and Education which the OCP Group has been sponsoring to the tune of 1.5 million US dollars every year support for access to affordable housing for Phosboucrâa employees 334 plots of land in Laayoune available through Al Omrane scope for acquiring housing elsewhere including Laayoune based on employees needs

26 INNOVATION AND PRESERVATION OF NATURAL RESOURCES AND THE ENVIRONMENT Finally, Phosboucrâa s development strategy focuses on innovation and preserving the environment and natural resources. As such, it has launched several industrial platforms that rely on sustainable technologies such as sea water desalination, wind energy and electric co-generation which means zero CO2 emissions. The teaching and research cluster will be focusing on issues involving the development and preservation of the environment and the coast line. These development projects reflect OCP s commitment to environmental preservation, the rational use of natural resources and stepping up capacity.

27 Foum El Oued Technogy Cluster REAGON OF LAAYPOUNE - BOUJDOUR - SAKIA EL HAMRA A platform for innovation and R&D Part of a responsible approach to development, the technology cluster project contributes to this promising region s social and economic development. In this way, OCP is extending its program of actions and investments aimed at supporting its facilities coastal areas and populations. POSITIONING As part of the Southern territorial development program, the Foum El Oued Technology Cluster project will support the economic emergence of the Laayoune region and foster its openness to the world. It will create a sustainable development model aimed at: Optimizing the region s economic and social development Promoting investment and job creation Providing a platform for innovation and R&D Creating synergy with local, national, and global partners LOCATION The technology cluster is located in the municipality of Foum El Oued, 18 km from Laayoune along the Atlantic coast. It is in close proximity to land, air, and sea travel options: Two-lane highway Proximity to Laayoune s port and airport 15 km from the OCP site PROGRAM 126 hectares distributed as follows: R&D and Innovation cluster Academic and Higher Education cluster Modern Culture and Tourism cluster Business Services cluster National Fisheries Technology cluster Residential area Source URL:

28 PHOSBOUCRÂA AND ITS FO PROJECTS FOR REGIONAL SOC nearly nineteen billion Dirhams, or 1.7 billion worth of industrial investment and socio-economic development nearly seventeen billion Dirhams to diversifying industrial activities and developing the regional business ecosystem. promotion of education and academic research. innovation and preservation of the environment and natural resources which is the guiding principle of our development strategy Through their subsidiary Phosboucrâa and the Phosboucrâa Foundation, OSP has been launching major projects to promote regional socio-economic development for the benefit of Morocco s Southern Provinces. These projects are part of a comprehensive and integrated approach aimed at promoting regional socio-economic development. Phosboucrâa is launching the construction of an integrated fertilizer production complex, that will make it possible to diversify its product portfolio. In addition to processing and exporting phosphate rock from Bou Craa, Phosboucrâa will also be producing and exporting phosphoric acid and fertilizers. To meet the needs of this new platform, construction of a new wharf has also been launched. Adapted as it is to the conditions obtaining in the Laayoune basin, the wharf will improve regional logistical capacities. The maximum permissible cost established for these industrial development projects is nearly 17 billion Dirhams, distributed as follows, 1.2 billion for investments involving phosphate extraction, 3.1 billion for processing operations, 8.3 billion dedicated to fertilizer production and 4.2 billion dedicated to the new wharf. These industrial construction projects will be completed over the next five years. PHOSBOUCRAA FOUNDATION: PROMOTION OF EDUCATION AND ACADEMIC RESEARCH To strengthen the Southern Provinces position regarding higher education and academic research, the Phosboucrâa Foundation has launched a large-scale development project, namely, the Foum El Oued Technology Cluster at Laayoune. It will house the Mohammed VI Polytechnic University at Laayoune, which will be geared towards research, innovation, and training in the scientific and technical fields relating to arid Saharan environments. It will also include a cluster for education, plus research and development involving economic and environmental themes pertinent to these areas. The Technology Cluster will include subsidiary clusters dedicated to skills development for young persons and the promotion of entrepreneurship. The Technology Cluster will feature an Industrial Skills Centre for training related to the phosphate industry in order to help OCP Group and its subsidiary Phosboucrâa deploy their industrial strategy. This will help to strengthen the local and regional economy. The Foum El Oued Technology Cluster Laayoune is scheduled for completion by 2022 and will be built in two phases, with the help of a two billion Dirham investment.

29 UNDATION LAUNCH MAJOR IOECONOMIC DEVELOPMENT

30 OCP S SOCIAL AND S The OCP Foundation was established to advance OCP s social and societal commitments. Its mission is to develop and implement community programmes that focus on human development. It works towards promoting education and training, improving youth employability, promoting and strengthening entrepreneurship, reducing poverty, promoting socio-economic development, increasing access to health care, promoting socio-cultural activities and heritage conservation and supporting food security programmes. Within this context, the OCP Foundation collaborates with several institutional partners such as the Ministries of Education, Health, Agriculture, etc. as well as numerous national and international non-governmental organisations. OCP has also invested in Skills Centres, counselling centres and training and support centres to combat academic failure and promote social inclusion. These centres also provide support and guidance for associations and cooperatives from the point of view of best possible management of their social projects. We have included a few examples of projects that the OCP has been sponsoring, million for the Phosphate Club going towards culture, leisure, sports clubs, etc million towards a Mining City 6.2 million for a kindergarten, elementary school and secondary school in Laayoune Worker skills embodied in no less than seventy-seven associations are benefiting from the capacity-building programme. 77 milliards de dirhams ( 7 milliards d ) son

31 OCIETAL PROJECTS We have spent seventy-seven billion Dirhams or 7 billion developing the Sahara. The implementation of our development model for the Southern Provinces demonstrates our commitment to fulfilling our obligations towards our fellow citizens in these provinces, helping them to become a model of integrated development. Excerpt from the speech King Mohammed VI delivered to the nation on 6 November 2015November 6, 2015 t consacrés au développement du Sahara.

32 THE RECOVERY OF THE SAHARAN TERRIT I vow to never pay a cent in reparations. Spain may burn my ports, occupy the capital, ravage the country; even if I have to seek refuge in the Atlas Mountains, I will not betray this oath. My ancestors are from the Sahara, and I will return there. Moulay Hassan I We have made our decision. We will set out on our peaceful, irreversible Green March in accordance with our rights. We will march alongside our friends and brothers, relying only on our firm determination and unwavering faith. Hassan II, October 16, 1975, Agadir The legacy of decolonization is still affecting Africa s numerous African states, agreements that were detri the colonial administrators drew up in accordance wi hurt Morocco. Mohamed VI, March 25th 2006

33 ORIES: MOROCCO S AGE-OLD STRUGGLE We solemnly proclaim that we will continue our efforts to reclaim our Sahara, in accordance with our historical rights and the wishes of the inhabitants. - Mohammed V, February 25, 1958, M Hamid El Ghizlane We affirm again, in this cowe affirm, in this regard, that we will not give up one single grain of sand from our dear Sahara. That s the best way to assure our fidelity to the allegence between the throne and the people,and moreover, to the eternal oath of the glorious Green March Mohamed VI, 2006 march 25 geopolitical situation. As was the case for mental to local populations and borders that th a partition approach based on compensation,

34 FROM COLONIZATION TO THE RECOVERY O The Portuguese capture Ceuta The Spanish occupy Melilla The Spanish conquer Tétouan A decree opens Morocco to foreign trade. Beginning of European economic penetration (Great Britain, France, Spain, and Germany starting in 1890) Start of Spanish presence, trading post opened on the site of Villa Cisneros (Dakhla) Berlin Conference, where colonial powers confirmed their rules for the partitioning of Africa The Algeciras Conference (April 6-7) places Morocco under the authority of the European powers and confers on Tangier the status of "international city." The Treaty of Fez (30 March) establishes Morocco as a French protectorate Spain gains a zone of influence in Northern Morocco (Rif) and Southern Morocco (Tarfaya), through the agreement signed by France and Spain on November Sultan Mohammed V is deposed by the French in August, condemned to exile in Corsica and later Madagascar, and replaced by his cousin Mohammed Ben Aarafa. At the instigation of nationalists, the major cities rise up. In December, the General Assembly of the United Nations adopts a resolution on Morocco's right to self-determination The Declaration of La Celle-St-Cloud issued on November 6 grants Morocco its independence and allows the Sultan to return. Triumphant return of Mohammed V to Morocco on November March - Morocco gains independence after the signature of the French-Moroccan Agreement in Paris, ending Morocco's status as a protectorate. In April, Morocco regains the northern area, still under Spanish control. The city of Tangier is regained in October (Ifni, Tarfaya, and the Sahara remain under Spanish control) Western Sahara becomes a "Spanish Province" on January Death of King Mohammed V, February 26. Hassan II ascends to the throne on March Spain cedes the enclave of Sidi Ifni to Morocco on 30 June May - Creation of the Polisario Front ("Popular Front for the Liberation of Saguia el-hamra and Río de Oro") In September, King Hassan II of Morocco brings the issue of the Sahara before the International Court of Justice (ICJ) in The Hague: crisis between Algeria and Morocco October 16 - The ICJ gives its Advisory Opinion. "...In colonizing Western Sahara, Spain did not proceed on the basis that it was establishing its sovereignty over terrae nullius... The materials and information presented to the Court show the existence, at the time of Spanish colonization, of legal ties of allegiance between the Sultan of Morocco and some of the tribes living in the territory of Western Sahara." October 16 - Backed by the ICJ's Advisory Opinion, His Majesty Hassan II announces in Agadir that the Green March will be organized to liberate the Saharan territories. October 18 - Spain contacts the UN Security Council to discuss the situation in Western Sahara. November 3 - After the Security Council adopted two resolutions (377 and 379) urging "all the parties concerned and interested to avoid any unilateral or other action which might further escalate tension in the area," Prince Juan Carlos travels to Laayoune to affirm that Spain will honor its commitments and maintain the peace.

35 F MOROCCO'S TERRITORIAL INTEGRITY November 5. - King Hassan II's Green March speech - Khatri Ould Sidi Said El Joummani, President of the Jemaa, pledges allegiance to King Hassan II in the Cortes (Spanish Parliament) on behalf of the people of Western Sahara that he represents. November 6 - King Hassan II launches the Green March, a march comprising 350,000 men and women carrying flags and copies of the Koran. In his words: "Only a highly organized nation with an authentic civilization could organize an operation of this magnitude!" Foreign delegations also took part in the March. Alongside Moroccan flags were flags from the United States, Jordan, Gabon, Senegal, Ivory Coast, Sudan, Qatar, Saudi Arabia, and the United Arab Emirates. November 9 - Hassan II ends the Green March after Spain promises to open negotiations to cede the Saharan territories. November 14 - The Madrid Accords prompt Spain to cede the Saharan territories and to commit to withdrawing before February 28, November 18 - The Cortes (Spanish Parliament) adopts a bill authorizing the Spanish government to decolonize the Sahara. PHOTO MARCHE VERTE, 6 NOVEMBRE 1975 February 27, Moroccan flag is raised over Laayoune. Spain's definitive departure.

36 LAÂYOUNE 1975

37 LAÂYOUNE A Rapport BEFORE - AFTER.pdf

38 Is it not time for reconciliation? Why not use the historic agreement reached in Colombia with the Revolutionary Armed Forces of Colombia known as the FARC under much the same historical conditions as the Polisario Front, as a model for Africa? Africa is another continent that conflicts resulting from colonialism have weakened. Africa s citizens deserve better than systematic exploitation of colonialisation s leftovers. In 1976, El-Ouali Mustapha Sayed, co-founder of the Polisario Front, declared that, Tribalism is a land mine under the feet of the Sahrawi people that could explode at any moment. El Ouali Moustapha Sayed, Premier dirigeant du front Polisario Morocco will also resist the hostile campaigns waged against and commitment that it has demonstrated in political and sec values. Those who want to boycott these products in violation the consequences of their decisions. Morocco has the right to to take advantage of the investment opportunities that the reg Excerpt from the speech given by King Mohammed VI, 6 th novem

39 Since the recovery of our Sahara and in a spirit of solidarity between its regions and the children of the United Homeland, Morocco has invested seven Dirhams for every Dirham of revenue from the region. Excerpt from the Royal Speech delivered at Laayoune on 7 November 2014 Moroccan economic products with the same sense of sacrifice urity matters when it comes to defending its unity and sacred of international law are free to do so. However, they must face open the door to partner states and global companies in order ion will offer as a result of upcoming major projects. ber 2015.