Mining in Iran: the Perspectives
Mining in Iran has had great potential over the decades with the country having tons of untapped reserves. Iran has got so much going on for the economy that is from real estate to bitcoin mining even though the VPN tunnels failed hence denying the traders access to most of the trading platforms.
Despite the venture into different fields, mining still leads as the contributor to Iran’s economy. The mining resources at Iran are valued at over USD 700 billion with the country boasting over 37 billion tons of mining resources. This shows that mining metals and non-metals are big business in the country. The mining is primarily focused on gold, copper, zinc, iron ore and many other rare earth elements.
What is contributing to the success of the mining industry in Iran?
The mining industry in Iran is not like any other. It is doing exemplary well due to the following reasons.
- Low costs of production per ton
- Availability of skilled and cheap labor
- Presence of a highly educated workforce
- Low energy costs
- Well-Developed transport infrastructure and the fact the country holds the most significant market share in the Middle East.
Future of mining in Iran
The mining industry undoubtedly has so much potential. The future could be brighter if the country can achieve its objectives when it comes to mining. The fact that the state has proximity to the exclusive economic zone opens up so many opportunities. The mining industry in Iran could become the hotbed of direct foreign investment. This would be possible if the players in the industry directed some focus and commitment towards the sector’s development by providing transparency to international partners.
To tap this potential, this is what needs to be done.
- Improve productivity
The country should focus on improving productivity per worker to improve the overall output. This can be done by using special focused task-force teams to boost efficiency. If the management practices are changed and discipline is improved, there should be a notable change in the performance of the industry.
- Capital development
When you talk about capital development in the mining industry, the focus is mostly on human capital. The management should take initiatives to develop the workers. Contributing to skill development and being able to retain the skill set will go a long way in making Iran remain top of the game in the mining industry.
- Change in management practices
The existing management practices do not seem to be doing much for the mining industry in the country. The management should take a transparent mechanism approach, develop a comprehensive plan and see it through implementation.
With the country holding so many mineral reserves, embracing the above practices will help the industry successfully harness the resources.