Economy, Business And Markets

$187m for Mining Development

$187m for Mining Development$187m for Mining Development

Some 5.4 trillion rials ($187.3 million based on official currency exchange rate) have been allocated to the mining sector out of the mining royalties which will be received in the current Iranian year (started March 20), IRNA quoted head of Mines and Mineral Industries Commission in the parliament, Dariush Esmaeili as saying.

According to the lawmaker, the fund will be invested in the development of the mining sector, 1.08 trillion rials of which will be spent by the Geological Survey of Iran (GSI) to implement exploration operations.

“The exploration sector did not achieve considerable progress over the past few years due to lack of financial resources while the mineral-rich countries have moved toward underground mining after expanding surface mining, Esmaeili said, adding that revenues from the mining royalties exceeded 3 trillion rials last year, 10% of which was given to the GSI.

In addition to expanding explorations, the parliament has also taken measures to help the mining sector grow in terms of productivity and increasing the value added.

“The Parliament reduced the mining usufruct fees to 25% from 30% and also offered exemptions such as the 21.5% royalty for mining firms that process iron ore into iron ore concentrate, 18% for iron ore pellet, and 15% for sponge iron,” said the lawmaker.

He described the imposition of mining royalties as the only way to curb selling unprocessed minerals. Touching on research funds, Esmaeili added that mining exploiters are allowed to spend 10% of the royalties and usufruct fees that they are required to pay on research projects. Such research projects should, according to law, be conducted under the supervision of the industry ministry and in cooperation with universities.

According to the MP, the sixth five-year economic development plan (2016-2021) has put great emphasis on the mining sector as well as water management.