Modernization of the Iranian Raw Materials Sector: Chances for Investors and Providers

The BGR has collected the main facts about the resource potential of the country and the most important investment plans regarding the raw material sector in a short report called “Iran – current position of the raw materials management industry “. Iran has significant hydrocarbon stocks but emerges regionally as an important producer of mineral raw materials, whose output can clearly be increased on a long-term basis, according to current plans.

Iran has significant hydrocarbon stocks but emerges regionally as an important producer of mineral raw materials, whose output can clearly be increased on a long-term basis, according to current plans.

Source: BGR

Source: BGR

In Iran, more than 60 different mineral raw materials are gained. The delivered quantities are – except for some industrial minerals or rather stones and earths – compared to the global scale low and not comparable to the hydrocarbon sector. Nevertheless, Iran is regionally an important producer, for example of steel and copper. The development in the production and the domestic consumption of refined crude steel, copper, aluminum, lead and zinc shows an increase of the total volume within the last ten years. Moreover, it is clear that the refined non-ferrous metals production considerably exceeds its consumption. With the exception of crude steel, Iran is to be classified as a net exporter of these products.

The production of not energetic mineral raw materials, including stones and earths, currently takes place in about 5,000 active companies.  About 620.000 people are employed in this sector. Mines and cabins are predominantly in government-run roof operator‘s, called Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), possession. Partly those cabins and mines are in private hands. IMIDRO is both responsible for the design, realization, and observance of the mining framework conditions (exploration, extraction and royalties) and for the implementation  of new mining projects. The organization currently competes  for private and foreign investments. IMIDRO thereby functions as joint-venture-partner and stockholder, especially in the case of major projects. An important foundation for the modernization of raw materials sector is provided by the permanent suspension of trade sanctions and the enhancement of securities. Thereby new chances for internationally active companies could emerge – from the granting of innovative technologies to the delivery of machines and facilities as well as processing investments.

“Iran – current position of the raw materials management industry” has been released as Commodity Top News 49 by BGR and DERA under the following link http://www.bgr.bund.de/DE/Gemeinsames/Produkte/Downloads/Commodity_Top_News/Rohstoffwirtschaft/49_iran.pdf?__blob=publicationFile&v=1.

Source: BGR – Bundesanstalt für Geowissenschaften und Rohstoffe

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