Economy, Business And Markets

Businesses Deserve Approbation

Businesses Deserve Approbation
Businesses Deserve Approbation

Private sector role in semi-complete and new mining projects is of the ascending order and businesses should be encouraged further to invest in the industrial and manufacturing sectors, the minister of industry, mine and trade said at a meeting of the Iranian Mines and Industries Development and Renovation Organization (IMIDRO) general assembly.

Calling on  IMIDRO to reduce its reliance on government resources and allow more space and voice for private enterprise, Mohammadreza Nematzadeh said the key organization needs to proceed “along the objectives of Article 44 of the Iranian Constitution to help secure the desirable capital for the country. As such, investors and businesses should always be appreciated and respected.”

According to the Persian daily Donya-e-Eghtesad, the minster proposed creation of new cooperatives and mining organizations to facilitate private sector participation in development of mining projects and industries. He also called on “banks and the National Development Fund of Iran (NDFI) to back mining projects with funding”, while recommending IMIDRO to “work toward pursuing its pending demands.”

Article 44 of the Constitution stipulates that the national economy falls into three categories: public, cooperative and private sectors. Accordingly, the private sector is complementary to the two other sectors.

The deputy minister of industry, mine and trade, Mehdi Karbasian told the assembly that IMIDRO’s goal for the current year (ends March 2015) is to “pursue its pending demands and conclude unfinished mining and industrial projects.”

Announcing that development projects worth $5 billion are in the pipeline following a new appeal for cooperation from private investors, Karbasian expressed the hope that an active private sector in IMIDRO’s new mining projects would help generate more than 20,000 direct and 100,000 indirect job opportunities. “IMIDRO policy after this government took over (in the summer of 2013) is focused on wrapping up the incomplete mining projects with the participation of private companies and expanding mineral exploration.” Referring to eighteen-fold increase in funding for research and development at IMIDRO, he said, “we intend to scientifically develop the chain of production from mines to the final product so as to underpin efficiency, raise productivity while keeping in mind ecological and safety concerns plus financial transparency.”