The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has released a new report on sales registered by 74 major Tehran Stock Exchange-listed mining and mineral companies.
According to the report, the aggregate sales of the firms under review stood at 2.76 quadrillion rials ($11 billion) during the first 11 months of the current Iranian year (started March 20, 2020) to register a 93% rise compared with last year's corresponding period.
Their sales volume during the 11th month of the year (Jan. 19-Feb. 19) stood at 365.03 trillion rials ($1.4 billion) to register a 7% increase compared to the previous month and a 156% rise compared with last year's similar month.
Mobarakeh Steel Company registered the highest sale with 662.93 trillion rials ($2.6 billion), up 81% year-on-year. The company’s sale during the 11th month of the year stood at 83.65 trillion rials ($334 million), indicating a 120% year-on-year increase and a 1% month-on-month decrease.
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 steel mill accounts for 18% of the country’s total production capacity with 7.2 million tons per year.
MSC was followed by the Iranian National Copper Industries Company with 346.69 trillion rials ($1.38 billion) of sales during the 11-month period, up by 72% YOY. The company's sales stood at 34.78 trillion rials ($139 million) during the 11th month of the year, up 300% YOY and 8% MOM.
NICICO is a leading copper producer in the Middle East and North Africa region and its mines hold close to 14% of Asia’s copper deposits and about 3% of global reserves.
Khouzestan Steel Company came third as its sales totaled 268.66 trillion rials ($1.07 billion) in 11 months, up 91% YOY. Its sales volume during the 11th month of the year stood at 26.26 trillion rials ($105 million), up 97% YOY and down 22% MOM.
The steelmaker, located in the southwestern Khuzestan Province, is the biggest exporter of steel in Iran.
Golgohar Mining and Industrial Company sold 254.17 trillion rials ($1.01 billion) worth of mineral products in 11 months, witnessing a 121% rise YOY. The company's sales stood at 34.14 trillion rials ($136 million) in the 11th month of the year, up 273% and 23% YOY and MOM respectively.
Chadormalu Mining and Industrial Company came next with 223.02 trillion rials ($892 million) worth of sales in the 11 months, up 151% YOY. The company sold 39.14 trillion rials ($156 million) in the 11th month to register a 285% rise YOY and a 42% increase MOM.
Standing at sixth place was Esfahan Steel Company (ESCO) with 175.75 trillion rials ($703 million) worth of sales in 11 months, indicating an 81% growth YOY. ESCO registered a 115% YOY and a 23% MOM rise in its 11th month’s sales (23.9 trillion rials or $95 million).
With 117.9 trillion rials ($471 million) worth of sales in 11 months, South Kaveh Steel Company was next to register a 144% rise YOY. In the 11th month of the year, the company’s sales reached 18.47 trillion rials ($73 million), up 319% YOY and 13% MOM.
Hormozgan Steel Company’s sales in the year under review reached 108.79 trillion rials ($435 million), up 99% YOY. The company’s sales amounted to 16.05 trillion rials ($64 million) in the 11th month, up 174% YOY.
$5.6b of Exports in 10 Months
Latest figures extracted from Iran Customs Administration's database show a total of 36.09 million tons of mineral products worth $5.61 billion were exported from Iran during the first 10 month of the current Iranian year (started March 20, 2020).
Shipments during the 10th month of the year accounted for 3.9 million tons worth $762.29 million of the total sum, IRNA reported.
Steel products topped the list of Iran’s mineral exports, followed by copper cathode and aluminum.
A total of 6.17 million tons of non-ferrous minerals were exported from Iran during the 10-month period, generating $214.91 million.
According to IRICA’s data, minerals accounted for 20% of Iran's total non-oil exports during the 10-month period under review.
Iran’s overall foreign trade, excluding oil exports, stood at 122.8 million tons worth $58.7 billion in the 10-month period ending Jan. 19.
According to Mehdi Mirashrafi, the head of the Islamic Republic of Iran Customs Administration, exports accounted for 94.54 million tons worth $28.06 billion and imports 28.24 million tons worth $30.63 billion of the sum.
Compared with the corresponding period of last year, exports registered a 17.7% and 20% decline in weight and value respectively.
Imports saw a 2% and 15.5% decrease in weight and value respectively year-on-year.
55b Tons of Reserves
Iran’s mineral reserves currently stand at 55 billion tons, about 37 billion tons of which are proven. New explorations are expected to increase the figure by 30% to 60 billion tons by the end of the current fiscal year (March 2021).
Some 410 million tons of minerals were extracted from Iranian mines in the last Iranian year (ended March 19, 2020).
Iran is home to 68 types of minerals with more than 37 billion tons of proven reserves and 57 billion tons of potential 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 is home to more than 7% of global mineral reserves.
IMIDRO, the country’s largest state-owned mining holding company, has invested 6 trillion rials ($26 million) in mining exploration across the country during President Hassan Rouhani's first term in office (August 2013-17).
"More than 900 high-potential mining zones have been identified so far … IMIDRO and its subsidiaries have carried out exploration operations over 700,000 square kilometers of the country’s area since 2012, 400,000 of which have been done over the past two years," Khodadad Gharibpour, the former head of IMIDRO, was quoted as saying by Fars News Agency.
A consortium of private companies accounted for 50,000 square meters of explorations, he added.
IMIDRO is set to carry out operations on 280 new mining zones, while the remaining zones will be outsourced to the private sector.
Exploration and mining in general cannot begin until mining firms are certified by the Industries Ministry.
Gharibpour said the permits issued so far cover the excavation of lead, zinc, gold, copper, iron ore, coal and salt, on which work has begun gradually.
Iran is said to have the largest area under mineral exploration in the Middle East.
$2.2b Worth of Investment in Fiscal 2020-21
State-owned Iranian Mines and Mining Industries Development and Renovation Organization and its subsidiaries’ investments in mining projects will reach $2.2 billion in the current Iranian year (ending March 20), in line with plans for boosting Iran's production capacity, IMIDRO wrote on its website.
“IMIDRO will have invested $11.6 billion into the development of the high-potential mining sector, from the beginning of President Hassan Rouhani's first term in office in August 2013 to the end of fiscal 2020-21, although the country has been struggling with the impact of US government's unilateral withdrawal from the landmark 2015 nuclear agreement and reimposition of sanctions,” it added.
As a major state-owned holding company, IMIDRO has eight major companies and 55 subsidiaries involved in the steel, aluminum, copper, cement and mineral sectors. Its subsidiaries include the National Iranian Steel Company, National Iranian Copper Industries Company, South Aluminum Company and the Iran Minerals Production and Supply Company.
IMIDRO says it has expanded mineral production capacity in the country over the past eight years, such that iron ore concentrate capacity has increased by 100% to 57.6 million tons per year.
"The capacity for producing pellets has also risen by 116.5% to 47.6 million tons per year. Steel concentrate capacity has grown by 66% to 37.5%," IMIDRO said.
In another update, IMIDRO says that by relying on local production, the mining sector has managed to reduce costs to a great extens.
The target is to save $1 billion by the yearend through localization, reads a press release published by IRNA. By focusing on domestic potential, IMIDRO aims to help support the country's foreign exchange resources and at the same time empower local producers.
The mining sector managed to meet $350 million of the target during the first half of the current Iranian fiscal year (started March 20, 2020). IMIDRO is optimistic about meeting the target, as it has been working on several development projects that are set to speed up the process of indigenization in the mining industry.
