Publish Date: 6/3/2017
Visited: 412

Iran: Invest in mining

Iran: Invest in mining


Investment in Iran's mining sector


Iran is a country with an area of 1648195 square meters that have wide range of geological periods and tectonic evolution in its place. Also in terms of minerals is one of the richest countries in the world, because of having the heterogeneous crust and various geological processes.
This country according to statistics and data with having almost 68 kinds of mineral (non-oil), 37 billion tons of discovered reserves and 57 billion tons of potential reserves is one of the world's 15 mineral powers. Until now 8840 mines have been discovered in Iran that 5873 numbers of them are active, 2546 numbers of them are disabled and 421 numbers of them are being equipped.
74 percent of this country's mines are building materials and decorative stones. In addition, 20 percent of mines are non-metallic and other 6 percent are metallic. Metal mines have a high share in producing the minerals in Iran.
The most important mineral deposits in Iran are copper, lead, zinc, chromite, iron, phosphate and manganese.
In addition, industrial deposits in Iran are perfect because of having the ornamental stones such as marble, travertine, turquoise and also.
So far, 124000 persons directly have been employed in the mining sector (direct employment). According to data of ILO for each direct job in the mining sector, 17 dependent and supplementary jobs are created in this sector.
Despite of being a country rich in mines and minerals, the share of mineral products is less than one percent of Iran’s GDP. However, this section can be expanded according to the mentioned capacities.
In recent years, macro-economic policies of Iran have emphasized on diversifying the economy and increasing the share of non-oil products in other non-oil sectors.
The mining sector is one of the noticed items in implementing this policies. This sector can play an important role in Iran’s economic independence from oil and economic diversity in opinion of politicians because of mineral poverty in Iran’s neighboring countries and infrastructure facilities of export and to sale the mineral products to other remote locations via network of rail and shipping that are inexpensive transports.
For this reason, arrangements for presence of people and more activities in this industrial sector is considered by the legislative and executive bodies. Some of these changes are include to change the customs tariffs, to remove taxes in the mining sector, to increase loans and non-cash facilities in order to explore and exploit the mines.
These points with cost of inexpensive fuel, accessing to infrastructure facilities or supplying them at very low cost have provided perfect situation for private investment in Iran’s mining sector.
Moreover, easy access to educated manpower in the field of mining with different orientations can provide good opportunity for investors in terms of accessing to human resources.
According to the above, activity and investment in Iran’s mining sector can be one of the interest parts and appropriate opportunities so that investors should have a long-term vision of the return on investment and consider to process produced materials specifically because it will lead to increase incomes and more profitability.

Opportunities
Opportunities of investment in Iran’s mining industry consists of two parts. The first part is related to internal potential and other part is related to the capacity and appropriate markets in neighboring countries. These opportunities include:
1.    Richness and abundance of mines and minerals in Iran
2.    Existing the roads and maritime ways for exporting the mineral products to neighboring countries
3.    Existing the expert human resources due to the nearly 70 years of academic training in Iran
4.    Accessing to affordable energy that lead to competitive pricing for mineral products
5.    Increasing the tax breaks for mining sector
6.    Reducing the customs tariffs for export
7.    Mineral poverty in neighboring countries especially countries in around Persian Gulf

Fields of activities in mining include:
1.    Exploration
2.    Extraction
3.    Processing/ Producing
4.    Export
5.    Improving the running processes in the exploration, extraction and processing

Suggestion of investment
Due to mentioned points in above and situation of Iran, investment in the mining sector can be a confident and good opportunity because Iran's neighbors need to these resources and also there are prepared export substrates.
In addition it should be noted that investment in the mining sector is as late return and long-term investments. Therefore, it is suggested that investment in this area should do in two ways: First, the investor with small fund and field study must try to identify capacities of various mines and areas then in the second step must exploit the mines by macro investing. This is a good way and has several advantages include to do fieldwork and mineralogy with less cost and risk. Secondly, possibility of success and recognition of more rich and productive mines will be increased because of investigating the several different locations.
It should be noted that despite of favorable investment opportunities in this sector, also there is probability of failure of investment projects. Our suggestion for reducing the risk of failure in your investment is to do feasibility study of projects and investment opportunities.
Because hidden opportunities and all aspects of project will be investigated by doing the feasibility study and will be caused to reduce probability of failure of investment projects.

References
Website of Ministry of Industry, Mine and Trade: www.mimt.gov.ir
Website of Mines and Metals Development Investment Company: mmdic.ir
News website: khabaronline.ir
Website of insurance of mineral activities investment: mimt.gov.ir
wikipedia.org

Share with: فیسبوک گوگل پلاس توییتر
Related Contents
Quick Navigation

Google PlusYahoo GroupTwitterFacebook
Quick Links

Projects
Sepinud Google Map

  Address: No 3-Unit 5-Chakkoshi St(3rd Bustan) alley- Pasdaran street- Tehran-Iran

Tel: +98 21 22584901

Fax: +98 21 22580343

website: www.sepinud.com

Email: info@sepinud.com

 

Copyrights (c) 2005-2016. Allrights reserved by Sepinud Shargh Institute