Iraq said on Sunday it had found a site in a province bordering Saudi Arabia where Captagon was being produced, a rare discovery in a country that has become a transit route for the illicit drug.
"Today, and maybe for the first time, a laboratory where Captagon is produced was found," Interior Ministry Spokesman General Saad Maan said in a video posted online.
Iraq has long been a transit country for Captagon, the amphetamine-like stimulant plaguing the Middle East, but officials say it has also become a consumer market for the drug.
The laboratory was discovered in the southern province of Muthana, a statement from the ministry said.
Oil-rich Saudi Arabia is believed to be the largest market for the drug.