The average Producer Price Index for the mining sector in the four-quarter period ending Sept. 22, which marks the end of the second quarter of the current fiscal year, increased by 40.4% compared with the same period of the year before, according to the Statistical Center of Iran.
The sector’s average PPI for the four-quarter period to June 21, i.e., the end of Q1 of the current Iranian year, had increased by 62.1% compared with the same period of the year before.
The average annual producer inflation of the “coal extraction” subsector in Q2 was at 48.5% and those of “extraction of metal ores” and “extraction of other mines” were at 38.4% and 56% respectively.
The overall PPI of the mining sector (using the Iranian year ending March 2017 as the new base year) stood at 1,155.1 in Q2, indicating a 2% decrease compared with the previous quarter, but a 13.4% rise against the same quarter of last year.
The quarter-on-quarter producer inflation of the “coal extraction” was at -3.6% in Q2 and those of the “extraction of metal ores” and “extraction of other mines” reached -3.7% and 13%, respectively.
The year-on-year producer inflation of “coal extraction” was 26.4% and those of the “extraction of metal ores” and “extraction of other mines” were 8.6% and 59.8%, respectively.
Iran is home to 81 types of minerals with reserves totaling 37-40 billion tons, according to Alireza Shahidi, the head of Geological Survey and Mineral Exploration of Iran.
The overall PPI of the mining sector stood at 1,155.1 in Q2, indicating a 2% decrease compared with the previous quarter, but a 13.4% rise year-on-year
“Construction materials, including gravel, rubble stones, sand and different types of stones, account for 62% of Iran’s mineral reserves, metal minerals constitute 10-15% of total reserves and the rest are non-metallic minerals,” he added.
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.
The PPI measures price movements from the seller's point of view. Conversely, the consumer price index measures cost changes from the viewpoint of the consumer. In other words, the index tracks changes to the cost of production.
The importance of PPI lies in its predictive content for the future pattern of Consumer Price Index. Changes in PPI are usually reflected in CPI within a short period of time.
Overall, Iran is home to more than 7% of global mineral reserves.
Notably, Iran’s standing rose to fifth place in terms of global ranking of copper reserves, the vice president of Development and Exploration of the National Iranian Copper Industries Company said recently, adding that until recently, the country held the seventh largest copper reserves in the world.
“With recent discoveries in Sungun and the addition of 1 billion tons of new reserves to the mine in East Azarbaijan Province, as well as the discovery of new reserves in other mines of the company, including Sarcheshmeh, Miduk and a new mine near Sarcheshmeh in Kerman Province, the volume of the company's copper reserves has increased from 18 billion tons to 19 billion tons,” Behrouz Rahmati was also quoted as saying by Fars News Agency.
Sungun Complex, located in East Azarbaijan Province, is Iran’s largest copper mine.
Sarcheshmeh Copper Complex is the world’s second largest open-cast copper mine located in Kerman Province. It also contains substantial amounts of molybdenum, gold and other rare metals.
“According to the United States Geological Survey’s latest report, following these explorations, the ranking of our country has risen to the fifth, placing us after Chile, Australia, Peru and Russia,” Rahmati said.
