Economy, Business And Markets

Gov’t Pushing for Transparency on Royalties

Gov’t Pushing for Transparency on Royalties Gov’t Pushing for Transparency on Royalties

Deputy minister of industry, mine, and trade Mehdi Karbasian says the administration is seeking to formulate policies to make the mining royalties and usufructs as transparent as possible, Fooladnews reported.

Mehdi Karbasian, also the chairman of board of directors at the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), stressed that in the current circumstances when the mining sector is in recession, substantial discounts are expected to be given in order to help the mines and mining firms survive.

There is currently a legal dispute between the Supreme Audit Court and the two major iron ore mines, Golgohar and Chadormalu. The exploitation concessions for the two iron ore mines, known as ‘twins’, were revoked and the IMIDRO took over the concessions. Following the development, the two mines are required to pay mining usufructs in addition to the royalties they previously paid.

Karbasian said the Chadormalu dispute is supposed to be settled by the Audit Court within the next two weeks. While the iron ore mine, located in the central Yazd Province, claims it has cleared all its 5.13-trillion-rial debt regarding the usufruct, the IMIDRO and the Audit Court believe the mine should pay twice the amount it has so far paid.

Last year’s parliamentary decision to charge the mining firms with usufruct has upset the private sector mining firms, casting doubts on their ability to survive.