Post the easing of sanctions in January 2016, Iran has become one of the most preferred trade partner in almost all industries, especially in the mining sector which is regarded as sunrise industry because of the vast mining resource wealth in Iran.
7% of Mining Reserve of the world (37B Ton Proven reserve) and a value of 700 B$, Iran is one of the richest countries in the world of mines, holding some 68 types of minerals. These include Coal, Iron Ore, Copper, Lead, Zinc, Chromium, Barite (6th largest producer), Salt, Gypsum, Molybdenum, Uranium and Gold.
There are about 5,500 mines in operation in Iran, with 90% owned by the state. Iran Mines are mostly Open-Pit and world class, like SarCheshmeh in Kerman (1.2 B Ton- Grade 0.7%), or Anguran Zinc mine (remaining grade 9 million ton – grade 35%) in Zanjan, Mehdi Abad Zinc Mine in Yazd (160 million Ton – Grade 2%), Sangan Iron Ore with a reserve of 1.2 Billion Ton (Ranked as 9th in the world) and Gole Gohar with 1 Billion Ton (Ranked as 10th in the world).
Iran ranks amongst the most mineral rich countries of the world and this sector contributes to around 4% to the state GDP and this figure drops to 0.6% when the mining related industries are removed. The reason for the low contribution of mining to Iranian economy is its underdeveloped nature. Despite the underdeveloped nature of its mining sector Iran is 2nd biggest producer of Gypsum and the largest producer of Turquoise in the world. These statistics would improve even further when foreign investments increase which at present is quite low. But despite sanctions and little foreign investment Iran has put capital into the mining sector and managed to become self-sufficient in various essential commodities like steel.
IMIDRO Established 15 years ago after merging 2 related ministries (Mines and Metals + Industry). Our Mission is to define and develop the mining projects in Iran and promote related investments, in partnership with private and foreign investors.
IMIDRO Strategies on Mining Sector
- To increase the share of Private sector in Mining and Infrastructure
- To increase mining activities in un-developed area of Iran
- To promote investment in related International Projects
- Project Funding Support
- know-how and technology development
- Marketing support and Export development
- To invest in Hi-Tech and Hi-Risk sector of Mining Business
- Human Resources Development
IMIDRO is a Governmental Organization and Ranked As a Developing Organization in Iran by Law.
IMIDRO Current and Future Projects
69 Project Constructed(Mining, Steel, Zinc, Copper, Aluminium, Gold, Infrastructure)
17 B$ Investment
70.000 Jobs created
29 project under development, 9 B$ Investment
By 2025, Iran mining sector will require another 20B$ Investment(Exploration, Project Development, Equipment's and Mining Renovation and related Infrastructures)
Incentives for Foreign and Private Sector Investment
IMIDRO is promoting foreign and private investment in the projects in Mining and Metal projects and has the following incentives for investors. To support the project, IMIDRO is willing to participate as a partner for foreign investor, if required.
|Incentives||Mining Exploration||Mine Projects||Mining Industries|
|Long term contract for Exploration, Extraction, Processing, Marketing||•||•|
|Support for allocation of loan from Iran Oil Fund for part of investment||•||•|
|Required permits from Authority||•||•|
|Long term contract for raw material supply||•||•|
|Allocate Land in Special Economic Zone (Tax Free…)||•|
|To Provide infrastructures required in SEZ||•|
|Reserve Sharing Contract after Exploration||•|
|Possible IMIDRO participation as shareholder in J.V Company||•||•||•|
|Exploration Risk Insurance by Government||•|
Iran Mine and Mining Industrial Development Organization (IMIDRO)
Advantages and Competitiveness Iran for Foreign Investors to Develop Mines and Mining Industries
- Export of goods and services without any commitment to re-introduce export proceeds to the Country (i.e., no surrender commitment requirement)
- The right to transfer profits (dividends) as well as capital and gains on capital in foreign exchange.
- The right to receive compensation resulting from expropriation (deprivation of ownership) and nationalization of foreign capital.
- Energy, with competitive price advantages, Including natural gas, ranked as Number 1 in world reserve of natural gas and number 3 in Oil reserve
- Big local market for mining industries, Iran use annually 20 million MT of Steel and more than 300K T of Aluminium ingot
- Strategic Location, easily access to markets in CIS, Turkey, Middle east (including Iraq, Afghanistan, Turkey, GCC) and the rest of world
- Well educated Human resources with expertise in mining and metal industries
- Suitable infrastructures including access to electricity network, road and railways
- For more information, Please refer to Organization for Investment Economic and Technical Assistance of Iran, www.oietai.ir
Investment Protections and Government Incentives
- Cession of land on a time base in the special zones
- Cession of mine royalty & extraction right as well as abandoning mine extraction of the mine
- Insurance coverage advantage in mine exploration, exploitation & mineral processing
- Advantage of laboratory services in Karaj Center and /or advantage of personnel training in the project startup
- Infrastructure (energy and water) assistance in provision
- Guarantee for feed with especial conditions and/or guaranteed purchase of product
- Provide support for utilizing National Development Fund facilities and /or support the projects to receive foreign & domestic facilities