Economy, Business And Markets

Private Investors Fund Copper Project

Private Investors Fund Copper Project Private Investors Fund Copper Project

A memorandum of understanding has been signed between the government and the private sector for building a copper concentrate plant in Kerman Province.

The MoU was signed among Iranian Mines and Mining Industries Development and Renovation Organization, National Copper Industries Organization of Iran and Atieh Saba Investment Company, under which the private sector is to make 65% of the total investment, IRNA reported.

“The feasibility study of the project has been conducted in the past four years and strip mining operation has already been completed,” said Ahmad Morad Alizadeh, managing director of National Copper Organization of Iran.

The budget outlay of the project is estimated at about 12 to 15 trillion rials (about $400 million). Up until now, 30% of the budget have been realized by the National Copper Industries Organization for upstream machinery and strip mining operations, he added.

Head of Iranian Mines & Mining Industries Development & Renovation, Mehdi Karbasian, who attended the signing ceremony of the MoU, expressed hope that the initiative will serve as a stepping stone for a stronger presence of the private sector in mining projects and that the involvement of private investors in the project “makes up for the slow progress of the project that has been worsened in the past few years in light of economic problems, cash shortages and economic sanctions against Iran.”

The government is planning to extract 51 million tons of copper ore this Iranian year (started March 21). Copper cathode production, which stood at 194,000 tons last year, is expected to hit 200,000 tons this year.