Economy, Business And Markets

Mine Royalties to Help Unfinished Projects

Mine Royalties to Help Unfinished ProjectsMine Royalties to Help Unfinished Projects

Royalties received from mines across the country will be spent on developing different mining projects, IRNA cited the head of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) as saying on Saturday.

Based on clause 55 of the budget law passed last year, all mining companies whose exploitation licenses have been granted to the IMIDRO are required to deposit 30% of their sales to the treasury. “Forty percent of the royalties received will be given to IMIDRO and we will use it to complete unfinished steel projects, carry out exploration operations, and create mineral infrastructures”, said Mehdi Karbasian, adding that the IMIDRO needs financial resources for its projects, a considerable portion of which will be fulfilled through the royalties.

Chadormalu in the central province of Yazd and Golegohar in the southeastern province of Kerman are the biggest iron mines in the country which belong to IMIDRO. However, only less than 25% of their 1.3-trillion-rial royalty debts has been obtained.

If the two mines do not pay their debt, the Treasury and the National Tax Administration will take the money from their bank accounts, Karbasian explained.

The ministry of industry, mine, and trade will also give 10% of the collected royalties sum to the Geological Survey of Iran which is responsible for carrying out geological and mineral operations throughout the country. The geological survey has been tasked by the new administration to finish a nationwide aerial survey within the next three years. So far, only a tiny 8% of the country has been aerially surveyed.