To Day Monday, Sep. 20, 2021
News200,000 sq. km. Exploration Projects Ready to Grab

200,000 sq. km. Exploration Projects Ready to Grab

2,425View Count:
2016/01/05Date:

Iran’s mining advantages include nearly 90 mineral substances along with rich gas and energy resources, proper access to regional and international waters, inexpensive experienced academic workforce, having large scales of open reserves, a dynamic and experienced private sector, supportive regulations and special economic zones, existence of steel, aluminium and cathode copper ingots.
The country of Iran possesses 68 different kinds of minerals. Its proven Iron Ore reserves reach to amount of 2.7 billion tons (0.8% total global reserves) and proven Copper Ore reserves reach to amount of 2.6 billion tons which account of 4% of global reserves. Iran also possesses 11 million tons of Zinc (4% of global reserves). The total proven reserves estimated to 6 billion tones, which together with unexplored 300 000 sq. km2 lands, may reach to more than 10 billion tons. The mines and mining industry have a 25% market share in the Tehran Stock Exchange with a total value of approximately US$30 billion.
Iranian Mines and Mining Industries Development and Renovation Organization (Imidro) is part of ministry of Industry, Mine and Trade. It was established in 2002, with the purpose of evaluating and determining the overall strategies and policies, executing the projects relating to the construction and the renovation of metal related industries, extraction and processing of mineral products as well as executing exploration projects.
Imidro is a very dynamic organization which plays an effective role in establishing and supporting companies’ progress in industry sector toward increasing competitive advantages in international markets. Its mission is also to create an economic corporation with high technical and managerial capabilities enjoying international standards to enable Imidro to rank among the global high level companies and the Islamic Republic of Iran rank among the top countries from mines and mining industries point of view
The Mining Man
Dr. Mehdi Karbasian is the Managing Director of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO). He believes that mining industry is one of the most valuable national resources that can develop and increase its share in GDP of the country.
In an interview with Iran Economy Magazine, Dr. Karbasian pointed to his recent visit to Tabas underground coal mine during which he observed closely tough conditions of miners working that led him to order necessary measures to improve safety conditions.
Asking about the role that plays IMIDRO in economy, he said considering the current situation particularly resilient economy, IMIDRO can have effective performance because the mining industry isn’t dependent on foreign help and its local development is achievable and can have critical role in economy growth.
However, he acknowledged that several major mining projects including seven steel projects, graphite electrodes project and Zarshoran gold have been suspended for years or had a slow progress due to various reasons such as financing problems, mismanagement in previous government and western sanctions.
Dr. Karbasian added that since he came to IMIDRO, the organization managed to activate the semi-finished projects worth of 700 billion toman in second half of last Iranian calendar year.
According to Dr. Karbasian, the share of mining industry in GDP growth is 0.5 or 1 percent a year that considering the 60 billion tons of minerals reserves in the country, is very low. Annually Iran mines around 400 million tons of minerals from 6000 mines that should be raise to 600 million tons.
He noted that the amount of reserves is significant as just 7 percent of our territory is being explored up to now and probable reserves of remaining 97 percent haven’t been identified yet. In addition to huge minerals reserves, access to free water along with rich gas resources enable Iran to activate energy intensive mining industries in south of the country and become aluminium production hub in the Persian Gulf region and export aluminium.
Dr. Karbasian estimated that Iran’s total minerals reserves worth 700 billion dollars and start of new exploration activities can double this figure. Iran holds 68 types of minerals as well as rare earth resources that can be exploited so by boosting exploration activities, one of the major hurdles to development of the sector would be removed.
He also gave the latest data on iron ore reserves and announced there are 2.5 billion tons of proved iron ore reserves and probable iron ore reserves are estimated around 4 billion tons. In Sangan and Saravan that exploration has started recently, the iron ore reserves can be doubled. Of this amount, Iran produces 48 million tons a year; 23 million tons of the output exported last year and the rest of it converted into concentrate and pellet and supplied to steel mills.
Growth predicted for Iran’s mine industry
Deputy Minister for Mines and Mineral Industries predicted a 6% growth rate for mines and mineral industries in the second half of this Iranian year.
Deputy Minister for Mines and Mineral Industries Mehdi said that due to the rapid implementation and operation of projects related to mining industries, this sector will be poised for growth in the coming years.
He added that Iran is on the threshold of a great economic evolution which is based on innovation and not expectation and we are to do our part in this movement. I live in a country in which nearly 90 types of mineral substances have been identified. A country with unprecedented oil, gas and energy reserves and access to the world open seas which due to a heterogeneous crustal and having experienced different geological events in the process of its formation, is rich with mineral substances and is blessed with some of the most important minerals and large and open reserves in the world.
Mining used to be common in ancient Iran; the proof of which we can see in the ancient remains of this homeland. But today we intend to set a new record in our developments and let Iran’s mining industries stand out in the world. Iran has the potentials to compete in mining industries. We are able to welcome large international investments in Iran in the field of steel, copper, aluminium, gold, lead, zinc, barite, silica, silver, etc. Our rules and regulations have easily made it possible for investors to function in Iran and IMIDRO has established basic mining industrial zones and even has more projects underway. Iran aims to produce over 60 million tons of steel, 1.5 million tons of aluminium, 8 tons of gold, 800 thousand tons of copper as well as other mineral products by the year 2025. Meanwhile, IMIDRO as an executive arm of the government and the only organization in the mines and mining industries development is ready to attract and welcome all investors in this very field and prepare the ground for the acquaintance of the Iranian private organizations with foreign investors.
The range of IMIDRO exploration projects during 1393 (March 2014 – March 2015) has been up to 200 thousand square km and it has also welcomed all domestic and foreign investors to be part of the development of exploration activities in the country. During the past 10 years, IMIDRO has also had over 1.5 million meters of exploration with a cost of $730 million dollars and its recent plans are expected to result in an outstanding growth in mining exploration.
In the first decade of its foundation IMIDRO launched over 100 major mining projects with an income of over $12 billion and created over 100 thousand job opportunities. To fulfill its long-term purpose, IMIDRO has developed many mining corporations and made it possible for them to join the private sector. Considering all the achievements of IMIDRO, this organization is one of the most successful department in mineral industries in the region.
Iran’s advantages regarding mining industries are outstanding. These include nearly 90 mineral substances along with rich gas and energy resources, proper access to regional and international waters, inexpensive experienced academic workforce, having large scales of open reserves, a dynamic and experienced private sector, supportive regulations and special economic zones, existence of steel, aluminium and cathode copper ingots which would facilitate the production and development of downstream industries, large and growing domestic and regional consumption markets such as Afghanistan and Iraq, countries in the south of the Caspian Sea and the south of the Persian Gulf. These are all among the very advantages our country is blessed with and lend proof to the fact that Iran is the best route for the development of mining industries of the region.
Dr. Mahdi Karbasian is the Deputy Industry Minister and the Director of Imidro. Has was appointed to the job about two years ago. Mehdi Karbasian has a PHD degree in management from Scotland and endowed with a lengthy service and experience in economic managements in key positions in Customs, Social Security Organization, Stock Exchange, Oil Ministry and Eco. & Financial affairs Ministry. Dr. Karbasian has worked as Managing Director of the Social Security Organization (SSO), has been a member in the High Council of Social Security and First Deputy Economy Minister in the government. He has also served as Chairman of Board of Directors of Retirement and Welfare Funds of the oil industry staff. Since he took the helm of IMIDRO, in line with government policies, favours for greater participation of private sector in investment, construction and implementation of mining projects. Dr. Karbasian believes that mining industry is one of the most valuable national resources that can develop and increase its share in GDP of the country.