ICCIMA official outlines potential for 13 percent growth in Iran's mining sector
Date
12/15/2024 6:45:27 AM
(MENAFN) Mohammad Reza Bahraman, deputy head of the Iran Chamber of Commerce, Industry, Mines, and Agriculture (ICCIMA), recently outlined the potential for a 13 percent growth in Iran's mining sector, provided that the government assumes a purely supervisory role and allows the private sector to spearhead project execution. In an interview with the ICCIMA portal, Bahraman emphasized that Iran is rich in mineral resources, including copper, lithium, nickel, manganese, cobalt, zinc, iodine, and rare earth elements. These minerals, which have experienced market growth over the past five years, are expected to see a significant rise in global demand by 2040, requiring an estimated USD1.7 trillion in global investments.
For the mining sector to contribute to Iran's economic growth target of 13 percent under the Seventh National Development Plan, Bahraman stated that the country must attract an additional 55 billion euros in net capital over the next five years. He pointed to the revitalization of the Mehdiabad mine as a successful example of private-sector involvement, noting that the mine, which had been closed for 72 years, was reopened by private investors.
Reflecting on the recent performance of the Iranian mining sector, Bahraman highlighted that investment in the sector increased by 11 percent in 2023, despite a global decline of 26 percent in international project funding. This growth, he suggested, demonstrates the resilience of the industry. However, he also pointed out key challenges facing the sector, including energy imbalances and regulated pricing, which have hindered further development.
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