Economy, Business And Markets

FDI Expected in Mining Sector

FDI Expected in Mining SectorFDI Expected in Mining Sector

Foreign investment will pour into the mining sector and mineral industries of Iran as soon as western sanctions against the country are removed, an industry official told IRNA.

“Within the framework of the 6th Five-Year Economic Development Plan, billions of dollars in investment needs to be spent in mining and mineral industries of the country including copper, iron, zinc, aluminum and rare minerals industries,” Mehdi Karbasian, president of Iranian Mining and Mineral Industries Development and Renovation Organization (IMIDRO) said.

The removal of “unjust sanctions” against Iran will certainly boost foreign investment in mining and mineral industries and western investors would particularly welcome that, Karbasian said.

Earlier, Mohammad Fatemian, director general for mineral industries at the ministry of industry, mine and trade told IRNA that the Rouhani administration has envisaged certain incentives to absorb foreign direct investment (FDI) into the mining sector. Some of these incentives include provision of land and extending capital guarantees to foreign companies that are willing to work under joint ventures in the country.

He believes that in light of abundant natural resources, the mining sector in Iran is least prone to external pressures including sanctions.

In late June, IMIDRO published an official announcement to attract private sector players to invest and collaborate in completing semi-finished mining and mineral projects. According to IMIDRO top officials, the pending projects require $5,000 billion in investment and have the potential to create 20,000 direct and 100,000 indirect new jobs in the market.