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Private Sector’s Presence in Mining Crucial

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2016/01/05Date:

Mehdi Karbasian added that insurance guarantees provided to investors should be increased to reduce investment risk
Private Sector’s Presence in Mining Crucial
Domestic Economy Desk
 
The involvement of private sector in mining exploration is necessary, said the deputy industries, trade and commerce minister.
Mehdi Karbasian added that insurance guarantees provided to investors should be increased to reduce investment risk.
He put total iron ore reserves identified in the country at 2.5 billion tons, noting that the discovery of new mines is necessary in view of steel development plans that are underway. Karbasian said the continued supply of feedstock to steel manufacturing plants is a prerequisite for the sustainable development of steel industry.
As per the 2025 Vision, the country’s steel production capacity should increase to 55 million tons.
Karbasian said that with regard to the country’s potential, plans have been devised to increase Iran’s capacity to produce iron ore concentrate and iron pellets to 62 million tons and 58 million tons respectively.
According to the Fifth Development Plan (2010-15), more investments in the field of mine exploration will help increase the country’s proven iron ore reserves.
Sajjad Ghoroqi, a member of the Association of Iron Ore Producers and Exporters, said in October that 2 percent of the world’s iron ore market pertain to Iran.

He said Brazil, Australia and South Africa are the world’s major iron ore exporters.
Ghoroqi noted that the high volume of iron ore exported by the country is due to the fact that the infrastructure for processing the mineral further does not exist.
“The export of iron ore is by no means the export of raw materials. Iron ore production is an expensive and time-consuming activity that requires a great deal of exploration, mining and processing,” he said