The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) expects to make 18 mining projects operational with a total investment of $2.56 billion in the current fiscal year (March 2020-21).
About 33% of the projects are related to steel production chain, while 15% pertain to copper, electricity supply to mines and road maintenance, IRNA reported.
One of the biggest projects is the second development phase of South Kaveh Steel Company’s billet production unit, which is to come on stream with $571 million worth of investment.
The projects are spread in 12 provinces. Semnan Province has the highest share with three projects, followed by Yazd, East Azarbaijan, Khorasan Razavi and Kerman—each with two projects.
Hormozgan, Fars, Khuzestan, South Khorasan, Qazvin, West Azarbaijan and Golestan each have one project on the agenda.
It is estimated that IMIDRO’s projects in the mining sector from the fiscal 2019-20 to 2023-24 will total 104 with a total investment of $16.43 billion.
According to Industries Minister Reza Rahmani, Iran has 50 billion tons of proven mineral reserves, Fars News Agency reported.
"Discoveries carried out over the past few years have led to a significant increase in Iran’s proven mineral reserves, which include at least 60 types of minerals," he added.
Most of the newly-discovered mines contain rich resources of copper, which are mostly concentrated in southeast and northwest parts of Iran.
Iran has the largest area under mineral exploration in the Middle East, according to Deputy Industries Minister Khodadad Gharibpour.
One of the biggest projects is the second development phase of South Kaveh Steel Company’s billet production unit, which is to come on stream with $571 million worth of investment
According to Gharibpour, who also heads IMIDRO, about 65% of Iran’s total explorable mineral areas (stretching over 1 million kilometers) belong to the organization.
Ali Asgharzadeh, IMIDRO’s exploration manager, says the highest volume of explorations in Iran pertains to copper, iron ore and coal.
Gharibpour said half of Iran’s 600,000 square kilometers has undergone mineral exploration. However, he noted that most mining explorations in Iran have been carried out at shallow depths, while deeper excavations would lead to a twofold increase in the discovery of mineral reserves.
According to the United States Geological Survey, Iran holds the world's largest zinc, ninth largest copper, 10th largest iron ore, fifth largest gypsum and barite, and 10th largest uranium reserves.
Overall, Iran possesses more than 7% of global mineral reserves.
IMIDRO recently released a report on the sales of 72 heavyweight Tehran Stock Exchange-listed mining and mineral companies.
According to the report, the aggregate sales volume of the firms under review stood at 1.56 quadrillion rials ($9.75 billion) during the last fiscal year that ended on March 19, 2020, to register a 60% rise compared with last year's corresponding period.
Mobarakeh Steel Company registered the highest sales volume among the firms during the year under review with 391.43 trillion rials ($2.44 billion), up 67% year-on-year.
MSC is the biggest steelmaker in Iran and the Middle East and North Africa region, accounting for about half of the country's steel production.
The company was followed by the Iranian National Copper Industries Company with 227 trillion rials ($1.4 billion), up by 125% YOY. NICICO is a leading copper producer in MENA and its mines hold close to 14% of Asia’s copper deposits and about 3% of global reserves.
Khuzestan Steel Company came third, as its sales totaled 158.4 trillion rials ($983.89 million), up 40% YOY. The steelmaker, located in the southwestern Khuzestan Province, is the biggest exporter of steel in Iran.
Mining Royalty Payments Hit $120m Last Year
Iranian miners paid a total of 18.71 trillion rials ($120 million) in mining royalties to the government during the last Iranian year, according to Deputy Industries Minister Daryoush Esmaieli.
He was quoted as saying by IRNA that Iran has 5,600 active mines.
Some 410 million tons of minerals were extracted from Iranian mines last year, he added, noting that Iran’s mineral reserves stand at 50 billion tons.
The deputy minister noted that the mining sector had a 25% share in Iran’s total non-oil exports last year.
Iran is home to a total of 10,404 mines that have created around 142,000 direct jobs, he added.
Referring to small-scale mines, Esmaieli said 146 small mines were revived last year and over 1,000 mines are expected to be revived this year.
