Iran’s largest gold mine reports slight increase in output

EghtesadOnline: A statement posted by the Zarshouran Gold Mine on Iran’s stock market’s website showed that the mine’s annual production had increased by 0.023 metric tons (mt) to 0.963 mt in the calendar year to March 19, 2024, according to a Saturday report by Fars news agency. 

The mine said it had spent 4.31 million rials ($7 on average annual prices) on the production of each gram of gold in the year to late March 2024.

It didn’t elaborate on the size of its current gold reserves.

Zarshouran is located in Iran's West Azarbaijan province and is owned by state-run metals and mining company IMIDRO. The mine said in November last year that its proven gold ore deposits had increased from 27 million mt to 43 million mt.

However, a similar statement by Mouteh Gold Mine, Iran's second-largest gold mine located in the central province of Isfahan, showed its production had declined by 0.19 mt to 0.246 mt in the year to late March 2024.

Mouteh’s statement didn’t mention why its production had fallen, although it indicated that the mine was currently in possession of 1.44 mt of gold.

Iran has an annual gold production of 1.2 mt, which it mostly supplies to domestic jewelry producers.  

Experts say Iranian gold miners are set to attract large investments amid record-high gold prices that have improved profit outlooks and boosted cash flows into the sector.

Spot gold climbed 0.6% to $3,074.43 an ounce on Friday after hitting its eighteenth record high this year at $3,086.70 earlier in the day.

Bullion closed at 82,866,200 rials per gram in Iran on Saturday, although markets were semi-closed due to the holidays marking the new Persian Year. / Mehr