Economy, Domestic Economy

Mining Development Needs $15b in FDI by 2021

Mining Development Needs $15b in FDI by 2021Mining Development Needs $15b in FDI by 2021

Iran’s mining sector requires $15.3 billion in foreign direct investment to meet the goals stipulated in the sixth five-year development plan (2016-21), the Iranian Mines and Mining Industries Development and Renovation Organization said.

Steel, copper and aluminum will be the main sectors in need of investment.

The lion’s share of the FDI is needed for steel industry’s development. Some $9.2 billion are required to boost crude steel production capacity from last year’s 23 million tons to 40.3 million tons by the end of Sixth Plan, IMIDRO estimated in its annual general meeting held on Saturday.

The development plan stipulates that copper cathode production capacity be increased from last year’s 308,000 tons to 411,111 tons by 2021. This requires $1.85 billion in foreign investment.

Aluminum ingot production capacity is to increase from the current 487,000 tons per annum to 823,000 tons in five years, for which $1.8 billion are needed in FDI.

IMIDRO also estimates that $1.25 billion of FDI are needed for the development of special economic zones across the country, in addition to $1.2 billion for mineral exploration.

Development plans are laws drafted by the government and ratified by parliament every five years since 1991 and are meant to provide the broad directions for a wide range of economic reforms and social priorities.