Iran’s exports of minerals and mining products to Saudi Arabia is expected to rise significantly, as the two sides have reached a new diplomatic agreement, according to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
New data released by the organization indicate that such exports stood at $29.5 million in the fiscal 2013-14 and increased to $82.8 million in the following year — the highest value of exports to date.
However, until the current fiscal year, there have been no exports except for a meager $100,000 in the fiscal 2017-18 amid tensions in diplomatic ties.
Iran’s exports of minerals and mining products to Saudi Arabia reached $14.2 million in the current fiscal year.
Direct-reduced iron has had the lion’s share of exports with 46.2%, followed by cement with 25.6%, steel manufacturing chain products (iron ore, semi-finished and finished steel) with 22.8%, stones and related products with 1.1%, clay products, bricks, ceramic and tiles with 0.5% and other mining and mineral products with 0.9%.
Ferroalloys and precious stones and metals are other Iranian products exported to Saudi Arabia.
IMIDRO estimates that the exports will reach $150-200 million in the fiscal 2023-24.
Thaw in Relations
Iran and Saudi Arabia agreed on Friday to restore their diplomatic ties after several days of intensive negotiations between the two countries’ top national security officials in the Chinese capital Beijing.
The China-brokered agreement was publicized in a ceremony where a joint statement was signed by Secretary of Iran’s Supreme National Security Council Ali Shamkhani, Saudi National Security Adviser and Minister of State Musaid bin Mohammad Al Aiban and China’s top diplomat Wang Yi, Nour News reported.
Based on the statement, the two countries agreed to resume diplomatic relations and reopen their embassies and missions within a maximum timeframe of two months.
Iranian and Saudi foreign ministers will meet for the implementation of this decision and arrangements for the exchange of ambassadors, according to the document.
Tehran and Riyadh severed diplomatic ties in 2016 after a group of Iranians stormed the Saudi Embassy in Tehran following the kingdom’s execution of a prominent Shia cleric.
Both sides later showed signs of interest in reconciliation marked by five rounds of negotiations in the Iraqi capital Baghdad, as well as mediatory efforts by the Sultanate of Oman.
In the latest move, Iranian and Saudi delegations held several meetings over five days in Beijing at the initiative of Chinese President Xi Jinping for supporting the expansion of Tehran-Riyadh relations based on the principle of good neighborliness, the joint statement explained.
The talks were also held as a result of Iran and Saudi Arabia’s willingness to resolve differences through dialogue and diplomacy based on fraternal ties and both sides’ adherence to the principles of the United Nations Charter and the Organization of Islamic Cooperation Charter and international rules and procedures, it added.
Renewing vows to respect each other’s sovereignty and avoid interfering in one another’s domestic affairs, Tehran and Riyadh also agreed to implement the security cooperation deal signed in April 2001, as well as another accord reached in May 1998 to boost economic, commercial, investment, technical, scientific, cultural and sports cooperation.
In the joint statement, the two neighbors also thanked Iraq, Oman and China for hosting and supporting their talks.
“The three countries express their firm determination to make every effort to promote regional and international peace and security,” the statement read.
Shamkhani was in the Chinese capital since Monday to conclude efforts to resolve Tehran-Riyadh differences in talks with his Saudi counterpart.
The negotiations followed agreements between Iranian and Chinese presidents on the issue during an earlier visit by President Ebrahim Raisi to Beijing last month.
Speaking after the signing of the statement, Shamkhani said the presidential talks paved the way for the start of a new round of talks between Iranian and Saudi delegations.
He described his negotiations as “clear, direct, comprehensive and constructive.”
“Clearing misunderstandings and looking to the future in Tehran-Riyadh relations will certainly result in the promotion of regional stability and security, and a boost in cooperation among countries in the Persian Gulf region and the Muslim world to manage the existing challenges,” he said.
Shamkhani thanked Iraq and Oman for hosting earlier rounds of talks, highlighting their significant contribution to the conclusion of the recent agreement.
He later expressed his appreciation for Baghdad’s valuable efforts in a phone conversation with Iraqi Prime Minister Mohammad al-Sudani.
Momentum in Exports
Following political negotiations between Iran and Saudi Arabia, it seems that the ground has been prepared for resumption of bilateral trade between the two neighboring countries, Rouhollah Latifi, a customs expert, wrote for the Persian daily Ta’adol in January.
Latifi, who is also the former spokesman of the Islamic Republic of Iran Customs Administration, added that a total of 30,791 tons of goods worth $14.71 million were exported from Iran to Saudi Arabia from the beginning of the current Iranian year (March 21, 2022) to Nov. 21, which is considered a significant jump after the suspension of political relations between the two sides in recent years.
“Iran’s exports to Saudi Arabia stood at less than $42,000 in the last Iranian year [March 2021-22]. The figure reached $377,309 in the first eight months of the current Iranian year (March 21-Nov. 21, 2022), but in the last 40 days, with the export of 30,015 tons of steel ingots worth $14.2 million and 60 tons of seedless grapes worth $126,000, Iran’s total exports reached $14.71 million,” he said.
Latifi noted that Iran’s exports to Saudi Arabia from March 21 to Dec. 31 stood at $15 million, of which 96.5% were iron and steel ingots.
Other exports during the period include 340 tons of sodium hydroxide worth $185,300, 86 tons of truck body worth $155,376, 265 tons of glass beads worth $33,000 and 25 tons of marble worth $3,731.
