The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has allocated 19 trillion rials (around US$38 million) to develop infrastructure and electricity supply for the country's mines.
As part of the country’s initiative to capitalize on its rich mineral resources and stimulate economic growth, IMIDRO has signed 28 agreements aimed at improving the infrastructure of private mines across the country.
These projects include 21 road construction initiatives and seven electricity supply projects, all of which come after US$32 million worth of investment from IMIDRO over the last 11 months.
Iran is one of the world's top 10 mineral-rich countries, with natural resources worth about US$27.3 trillion.
The nation has some of the largest global reserves of iron, copper and zinc. Its proven iron ore reserves stand at 2.7 billion metric tons (MT), while its copper reserves are at 2.6 billion MT. Iran's zinc reserves are estimated at 11 million MT.
The country also holds major reserves of gypsum, barite, lead and coal. Other notable minerals found in Iran include chromate and manganese, which are spread across its 15,000 mining areas.
The total proven reserves of Iran's mines are currently around 60 billion MT, with expectations to exceed 100 billion MT following extensive exploration programs arranged by the government.
Despite its mineral wealth, Iran's mining sector has faced challenges due to a lack of modern machinery, equipment and foreign investment, largely as a result of US sanctions, which have handicapped its ability to operate at full capacity.
In response, the Iranian government is focusing on leveraging the nation's domestic resources and capabilities to overcome these obstacles and achieve its mining sector goals.
In the calendar year ended on March 19, IMIDRO said over US$1.8 billion worth of mining projects became operational, creating more than 3,500 jobs. These projects span segments such as steel, copper, zinc, aluminum and infrastructure.
Iran's mineral exports were valued at US$13.7 billion for the period, notching a 9 percent increase from the previous year, while imports of mining and mineral products rose by 35 percent to US$7.3 billion.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.