Top Exporter of Rock Phosphate in the World: Jordan Phosphate Mines Company

Interview with Eng. Amer Abdel-Wahab Al-Majali, Chairman of Jordan Phosphate Mines Co.

How and to what extent is Jordan Phosphate Mines Company affected by the current situation in the region?

Thanks to our leadership, Jordan is really quite a secure and calm country compared to the turbulent region overall. Jordan should take the opportunity to exploit this fact and attract investments. So far due to the wisdom of our leadership and the good relations that Jordan has worldwide we have fortunately obtained many free trade agreements with most of the world. I believe we have agreements with almost 55 countries worldwide whereby most of our Jordanian manufactured goods can enter these markets free of custom duties. This means that Jordanian products could be entering these markets duty free and reaching over 1 billion inhabitants all over the world including in the United States and Europe.

What about other challenges?

First of all we are a global company. We are considered worldwide number two in exporting rock phosphate and most of our markets are in South East Asia and the Far East. We don’t export locally or to this region so we are not affected by what is happening in our surrounding region. Our main port is Aqaba and everything there is very secure and under control. On the macro level of Jordan, there has been some effect because of the turbulent neighbouring countries as some of the Jordanian goods have almost stopped being exported to those countries. Many companies are now searching for new markets to substitute and compensate for what is happening in the region.

Give us your overview of the mining industry in the Kingdom.

In 2015 we have produced almost 9 million and we are close to marketing all of this in accordance with the plans that were agreed by the board of directors of the company.

The mining industry as a whole constitutes a good portion of the GDP of Jordan. It is actually the main resource. This company is number one as a national company in Jordan that really exploits the natural resources of Jordan. Our policy is to add value to this rock phosphate material in order to streamline and add value for fertilisers which will serve many countries worldwide in their agriculture sectors and for their food security. As you know there is always growth in population numbers worldwide and that has its effect on agriculture and food production. This agricultural production will be enhanced by using fertilisers which will add value and increase the production of food.

We are trying to play a big role in Indonesia by having a major project there that was inaugurated last year. We also have another two joint venture projects which will secure the rock phosphate supply of over 2.4 million tonnes of phosphate to Indonesia. This will help Indonesia with the growth of their agriculture products and with their food security plans.

Is this yet to happen in 2016?

We already have an operation which began last year and we have already signed two new projects. This year we signed to establish a company, in the presence of the President of Indonesia, and this company will start doing all of the logistics required in order to then build another project.

Are you also looking beyond Indonesia?

We also have Indian companies. A great success model was inaugurated this year in the presence of His Majesty Kind Abdullah and the President of India two months ago in His Majesty’s palace. We inaugurated this company and its paid up capital is almost 900 million US dollars. It will export phosphoric acid which is one of the medium range products that will go in the streamline of different fertiliser products.

Your 2015 production target was 9 million tonnes.

We are close to that. When we started running this company with my presence, we had a road map and a five year plan. This five year plan introduced a 12% period growth on the phosphate which has to match our marketing plans. Last year it was recorded that we produced 8 million tonnes. The company had never exceeded more than 7 million and that year we produced 8 million which was all marketed. In 2015 we have produced almost 9 million and we are close to marketing all of this in accordance with the plans that were agreed by the board of directors of the company.

What are you doing with regards to environmental protection?

Our main environmental issues are in Aqaba where we have the industrial complex. We have got a contract with SNC-Lavalin, an international company who is now working on the project in order to meet with all of the environmental issues, particularly with the gases that are emitted and to make sure that we are meeting the international requirements while at the same time to increase the production of fertilisers in Aqaba.

Previously Aqaba used to suffer a lot, particularly the old phosphate export port. We had to relocate to another area where we have a new port that now completely meets the environmental regulations. It was inaugurated two years ago by His Majesty King Abdullah. It is a zero emissions port. Often when you move phosphate onto vessels there is lots of dust but now there is zero dust. It is part of the JPMC assets.

How is Jordan Phosphate Mines Co. contributing to community development?

We believe that all good, sound, global companies who are producing profitable products should really contribute to social responsibility and thus we are playing a big role in that. We are going to introduce a new system whereby we have a fund that will have a lot of impact on the national issues that Jordan is now facing particularly employment as our unemployment is high. We are also receiving a lot of refugees and so the country is not in a good position regarding manpower. We need productive projects that can contribute to the economy and target this national issue.

There have been certain changes with regards to the internal organization of the company.

When I first started as Chairman of this company there were lots of issues which were causing lots of instability in the company. At the same time, worldwide there was lots of criticism because the company was facing problems with strikes after the Arab Spring and our employees were trying to obtain lots of incentives that would have a lot of impact on the company’s financial issues. Thank goodness we are now in a better position and we have a new HR by-law which has now reduced the overload in the company. 800 people have had their contracts terminated with their consent and this will get us back to being a very efficient and commercial company. We have been working hard trying to solve most of the issues that have caused inconvenience for the company and we hope we will create further development for the company and the employees. These developments have been in coordination with the labour laws and in association with the Ministry of Labour and the Association of Employees within the company.

What would be your personal vision for the company?

My personal vision is to have diversified new markets to secure more fertilisers, products and rock phosphate materials. At the same time I want to have more added values in our products and have downstream industries so that we can be a major player worldwide in the fertilisers industry.

For investors considering Jordan, what are the most promising investment opportunities in the Kingdom?

You have to look at the comparative advantage of the areas. We have a lot of touristic areas in Jordan and there are great opportunities there for foreign investors. All of the legislation is very attractive for foreign investors now because they are treated equally to the Jordanians. There are a lot of opportunities in the tourism sector. There are also other areas where there can be joint ventures between foreign investors and local investors which will add value to our economy. Since we play a great role in the Middle East, Jordan can constitute as a hub in the area to attract foreign investors. We are doing a lot in this respect.