Economy, Business And Markets

Foreign Investment in Mineral Industries

Foreign Investment in Mineral IndustriesForeign Investment in Mineral Industries

The Filipino ambassador to Iran has expressed his country’s willingness to set up steel and ferrochrome factories near the southern port city of Bandar Abbas, IRNA quoted the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) as saying on Sunday.

Eduardo Martin Menez visited the Persian Gulf Special Economic Zones, which he lauded for its suitable infrastructure and potential facilities.

The steel manufacturing industry is the largest consumer of ferrochrome, especially for producing stainless steel which has 10 to 20% of chromium.

According to the envoy, his embassy has long been studying the zone with the hope of launching a venture with Iran. Menez added that the special zone is situated in a strategic location and could have positive impacts on metal and industrial sectors.

The ambassador also paid a visit to Kish Island, calling it a desirable holiday resort for over 2 million Filipinos who live and work in the Persian Gulf region.

Earlier, an Asian delegation including representatives of companies from the Philippines, Indonesia, and China had expressed willingness to invest as much as $400 in Iran’s mining sector. Jose de Venecia, the head of the delegation, had called Iran “a mineral-rich country which provides a suitable ground for investment in mine development projects for iron ore, coal, coke, nickel, and aluminum”.

After submitting his credentials to President Hassan Rouhani in May, Ambassador Menez said Manila was willing to increase trade with Iran from the current $350 to at least $1 billion a year.

According to IMIDRO, another agreement with the Asian delegation has come in the form of a memorandum of understanding with the multinational company ANC for building factories to produce raw material for the steel industry in Tabas coal mine located in South Khorasan province.

The MoU was signed by the IMIDRO deputy head, Jamshid Mollarahman and Alex Fu, the managing director of the ANC. The company has also expressed willingness to take part in setting up a ferrochrome factory in Iran.

IMIDRO, as a major state-owned holding company active in the mining sector, is planning to implement 29 projects in mining and minerals sector, worth at least $9 billion.

The effort is in line with the 2025 Vision Plan, envisaging the production of 55 million metric tons of crude steel by the next decade.