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17-04-23

Iranian Mining Sector Shows Growth Despite Restrictions, Challenges

(MENAFN) According to Vajihollah Jafari, the head of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), most mineral materials and mining industries products experienced growth in production during the past Iranian calendar year 1401, which ended on March 20. Despite existing restrictions and problems, such as electricity and gas outages, Iranian factories and companies were able to use their full capacity and strengthen domestic and export markets, leading to growth in the mining sector. Additionally, the supply of raw materials and other production needs during times of outages was carefully planned to support growth.

Serious measures were taken in the field of exploration last year, according to the deputy industry, mining, and trade minister. With 81 different types of minerals, Iran is one of the top 10 mineral-rich countries in the world. As such, the Iranian government has been pursuing several programs to promote the mining sector as a major contributor to the country's economic growth.

Iran's proven reserves of iron ore are 2.7 billion tons, while copper reserves stand at 2.6 billion tons, and zinc reserves at 11 million tons. The total proven reserves of Iran's mines are estimated at about 60 billion tons, which is expected to increase to more than 100 billion tons with the implementation of the Industry, Mining, and Trade Ministry's exploration programs over 500,000 square kilometers of new mineral zones.

Despite the potential for growth in the mining sector, there have been challenges, including a lack of necessary machinery and equipment, and limited access to financial resources and foreign investment due to U.S. sanctions. As a result, the Iranian mining sector has been struggling to operate at maximum capacity in recent years. To address these challenges, the government has been focused on promoting domestic sources to help the mining sector overcome its current problems and achieve its ideal targets.

Overall, the growth of the Iranian mining sector is a positive development for the country's economy. Despite existing challenges, the sector has been able to show growth through careful planning, the use of full capacity, and a focus on domestic sources. With continued support and investment, the mining sector has the potential to become a major contributor to Iran's economic growth and development.
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