Iran’s mining advantages include nearly 90 mineral substances along with
rich gas and energy resources, proper access to regional and
international waters, inexpensive experienced academic workforce, having
large scales of open reserves, a dynamic and experienced private
sector, supportive regulations and special economic zones, existence of
steel, aluminium and cathode copper ingots.
The country of Iran possesses 68 different kinds of minerals. Its
proven Iron Ore reserves reach to amount of 2.7 billion tons (0.8% total
global reserves) and proven Copper Ore reserves reach to amount of 2.6
billion tons which account of 4% of global reserves. Iran also possesses
11 million tons of Zinc (4% of global reserves). The total proven
reserves estimated to 6 billion tones, which together with unexplored
300 000 sq. km2 lands, may reach to more than 10 billion tons. The mines
and mining industry have a 25% market share in the Tehran Stock
Exchange with a total value of approximately US$30 billion.
Iranian Mines and Mining Industries Development and Renovation
Organization (Imidro) is part of ministry of Industry, Mine and Trade.
It was established in 2002, with the purpose of evaluating and
determining the overall strategies and policies, executing the projects
relating to the construction and the renovation of metal related
industries, extraction and processing of mineral products as well as
executing exploration projects.
Imidro is a very dynamic organization which plays an effective role in
establishing and supporting companies’ progress in industry sector
toward increasing competitive advantages in international markets. Its
mission is also to create an economic corporation with high technical
and managerial capabilities enjoying international standards to enable
Imidro to rank among the global high level companies and the Islamic
Republic of Iran rank among the top countries from mines and mining
industries point of view
The Mining Man
Dr. Mehdi Karbasian is the Managing Director of Iranian Mines and
Mining Industries Development and Renovation Organization (IMIDRO). He
believes that mining industry is one of the most valuable national
resources that can develop and increase its share in GDP of the country.
In an interview with Iran Economy Magazine, Dr. Karbasian pointed to
his recent visit to Tabas underground coal mine during which he observed
closely tough conditions of miners working that led him to order
necessary measures to improve safety conditions.
Asking about the role that plays IMIDRO in economy, he said
considering the current situation particularly resilient economy, IMIDRO
can have effective performance because the mining industry isn’t
dependent on foreign help and its local development is achievable and
can have critical role in economy growth.
However, he acknowledged that several major mining projects including
seven steel projects, graphite electrodes project and Zarshoran gold
have been suspended for years or had a slow progress due to various
reasons such as financing problems, mismanagement in previous government
and western sanctions.
Dr. Karbasian added that since he came to IMIDRO, the organization
managed to activate the semi-finished projects worth of 700 billion
toman in second half of last Iranian calendar year.
According to Dr. Karbasian, the share of mining industry in GDP growth
is 0.5 or 1 percent a year that considering the 60 billion tons of
minerals reserves in the country, is very low. Annually Iran mines
around 400 million tons of minerals from 6000 mines that should be raise
to 600 million tons.
He noted that the amount of reserves is significant as just 7 percent
of our territory is being explored up to now and probable reserves of
remaining 97 percent haven’t been identified yet. In addition to huge
minerals reserves, access to free water along with rich gas resources
enable Iran to activate energy intensive mining industries in south of
the country and become aluminium production hub in the Persian Gulf
region and export aluminium.
Dr. Karbasian estimated that Iran’s total minerals reserves worth 700
billion dollars and start of new exploration activities can double this
figure. Iran holds 68 types of minerals as well as rare earth resources
that can be exploited so by boosting exploration activities, one of the
major hurdles to development of the sector would be removed.
He also gave the latest data on iron ore reserves and announced there
are 2.5 billion tons of proved iron ore reserves and probable iron ore
reserves are estimated around 4 billion tons. In Sangan and Saravan that
exploration has started recently, the iron ore reserves can be doubled.
Of this amount, Iran produces 48 million tons a year; 23 million tons
of the output exported last year and the rest of it converted into
concentrate and pellet and supplied to steel mills.
Growth predicted for Iran’s mine industry
Deputy Minister for Mines and Mineral Industries predicted a 6% growth
rate for mines and mineral industries in the second half of this
Iranian year.
Deputy Minister for Mines and Mineral Industries Mehdi said that due
to the rapid implementation and operation of projects related to mining
industries, this sector will be poised for growth in the coming years.
He added that Iran is on the threshold of a great economic evolution
which is based on innovation and not expectation and we are to do our
part in this movement. I live in a country in which nearly 90 types of
mineral substances have been identified. A country with unprecedented
oil, gas and energy reserves and access to the world open seas which due
to a heterogeneous crustal and having experienced different geological
events in the process of its formation, is rich with mineral substances
and is blessed with some of the most important minerals and large and
open reserves in the world.
Mining used to be common in ancient Iran; the proof of which we can
see in the ancient remains of this homeland. But today we intend to set a
new record in our developments and let Iran’s mining industries stand
out in the world. Iran has the potentials to compete in mining
industries. We are able to welcome large international investments in
Iran in the field of steel, copper, aluminium, gold, lead, zinc, barite,
silica, silver, etc. Our rules and regulations have easily made it
possible for investors to function in Iran and IMIDRO has established
basic mining industrial zones and even has more projects underway. Iran
aims to produce over 60 million tons of steel, 1.5 million tons of
aluminium, 8 tons of gold, 800 thousand tons of copper as well as other
mineral products by the year 2025. Meanwhile, IMIDRO as an executive arm
of the government and the only organization in the mines and mining
industries development is ready to attract and welcome all investors in
this very field and prepare the ground for the acquaintance of the
Iranian private organizations with foreign investors.
The range of IMIDRO exploration projects during 1393 (March 2014 –
March 2015) has been up to 200 thousand square km and it has also
welcomed all domestic and foreign investors to be part of the
development of exploration activities in the country. During the past 10
years, IMIDRO has also had over 1.5 million meters of exploration with a
cost of $730 million dollars and its recent plans are expected to
result in an outstanding growth in mining exploration.
In the first decade of its foundation IMIDRO launched over 100 major
mining projects with an income of over $12 billion and created over 100
thousand job opportunities. To fulfill its long-term purpose, IMIDRO has
developed many mining corporations and made it possible for them to
join the private sector. Considering all the achievements of IMIDRO,
this organization is one of the most successful department in mineral
industries in the region.
Iran’s advantages regarding mining industries are outstanding. These
include nearly 90 mineral substances along with rich gas and energy
resources, proper access to regional and international waters,
inexpensive experienced academic workforce, having large scales of open
reserves, a dynamic and experienced private sector, supportive
regulations and special economic zones, existence of steel, aluminium
and cathode copper ingots which would facilitate the production and
development of downstream industries, large and growing domestic and
regional consumption markets such as Afghanistan and Iraq, countries in
the south of the Caspian Sea and the south of the Persian Gulf. These
are all among the very advantages our country is blessed with and lend
proof to the fact that Iran is the best route for the development of
mining industries of the region.
Dr. Mahdi Karbasian is the Deputy Industry Minister and the Director
of Imidro. Has was appointed to the job about two years ago. Mehdi
Karbasian has a PHD degree in management from Scotland and endowed with a
lengthy service and experience in economic managements in key positions
in Customs, Social Security Organization, Stock Exchange, Oil Ministry
and Eco. & Financial affairs Ministry. Dr. Karbasian has worked as
Managing Director of the Social Security Organization (SSO), has been a
member in the High Council of Social Security and First Deputy Economy
Minister in the government. He has also served as Chairman of Board of
Directors of Retirement and Welfare Funds of the oil industry staff.
Since he took the helm of IMIDRO, in line with government policies,
favours for greater participation of private sector in investment,
construction and implementation of mining projects. Dr. Karbasian
believes that mining industry is one of the most valuable national
resources that can develop and increase its share in GDP of the country.