Economy, Business And Markets

Czech Delegation in Iran for Mining Cooperation

Czech Delegation in Iran for Mining CooperationCzech Delegation in Iran for Mining Cooperation

A 30-strong business delegation from the Czech Republic, made up mainly of representatives of the country’s mining sector, visited Tehran on Sunday and met with members of Tehran Chamber of Commerce, Industries, Mines and Agriculture to explore potential avenues of cooperation and trade.

The delegation was headed by Deputy Foreign Minister Martin Tlapa, our sister publication Donya-e-Eqtesad reported.

“The purpose of this visit is to cooperate with Iranian firms in the mining industry,” said the Czech official, emphasizing that the European country’s industry players are ready to strike deals with their Iranian counterparts with the full support of Czech central bank and Export Guarantee and Insurance Corporation.

Tlapa pointed to some of the signed economic agreements between Iran and the Czech Republic, including a 50-megawatt power plant construction project worth €50 million, as examples of successful cooperation between Tehran and Prague. He explained that the required turbines for the project are being manufactured by the Czech Republic and that Iran will also be provided with the construction technology.

“The Czech Republic can meet the Iranian market’s requirements in the fields of petrochemicals, agriculture and food, auto manufacturing, railroad production and mineral extraction and processing,” he said.

Establishment of direct flights between Tehran and Prague, cooperation in developing Iran’s infrastructure and undertaking joint ventures in the country’s gas sector were some of the other potential economic sectors discussed by the foreign official.

Tlapa also met with his Iranian counterpart, Majid Takht-Ravanchi, on Sunday. The trade delegation travelled to South Khorasan Province on Monday to attend a business forum alongside the province’s economic players.

Mohammad Reza Bahraman, the head of Iran Mining House, described the untapped potential in Iran’s mining sector as “significant”, and said the Mining Act of the Islamic Republic of Iran allows foreign firms to hold up to 100% stake in the country’s mines and mining industrial firms, offering a good opportunity for Czech investors.

Emphasizing that the government intends to boost the output of Iran’s mining sector, the Iranian official noted that the industry has a “pressing need for foreign investments”.

“Czech companies’ investments in the sector can be highly beneficial for both sides,” he added.

Bahman Eshqi, secretary-general of TCCIMA, said the current annual trade value between Iran and the Czech Republic is too low considering the two countries’ industrial capabilities and longstanding ties. The figure stood at about $52 million in 2015.

The official pointed to sectors such as oil and gas, transportation, auto manufacturing, pharmaceutical production and tourism as potential areas for boosting mutual cooperation.