IMIDRO’s Mining Investments to Reach $2.2b in Fiscal 2020-21

EghtesadOnline: Investments of state-owned Iranian Mines and Mining Industries Development and Renovation Organization and its subsidiaries in mining projects will reach $2.2 billion in the current Iranian year (ending March 20), in line with plans for boosting Iran's production capacity, IMIDRO announced in a report published on its website.

News ID: ۷۸۶۱۱۶

28 February 2021

“IMIDRO will have invested $11.6 billion in the development of the high-potential mining sector, from the beginning of President Hassan Rouhani's first term in office in August 2013 up to the end of fiscal 2020-21. This is while the country has been struggling with the impacts of the US government's unilateral withdrawal from the landmark 2015 nuclear agreement and reimposition of sanctions.”

As a major state-owned holding company, IMIDRO has eight major companies and 55 subsidiaries involved in the steel, aluminum, copper, cement and mineral sectors. Among its subsidiaries are the National Iranian Steel Company, National Iranian Copper Industries Company, South Aluminum Company and the Iran Minerals Production and Supply Company.

IMIDRO said it has managed to considerably expand the capacity of mineral production in the country over the past eight years, such that iron ore concentrate capacity has increased by 100% to 57.6 million tons per year.

The annual capacity for producing pellets and steel concentrate has also increased by 116.5% to 47.6 million tons and 66% to 37.5 million tons respectively.

The industries and mining group registered the highest economic growth (based on the prices of the year ending March 2012) in the first half of the current fiscal year (March 20-Sept. 21) of 5.4%, the Central Bank of Iran reported.

Iran’s mineral reserves currently stand at 55 billion tons, about 37 billion tons of which are proven. New explorations are expected to increase the figure by 30% to 60 billion tons by the end of the current fiscal year (March 2021).

Some 410 million tons of minerals were extracted from Iranian mines in the last Iranian year (ended March 19, 2020).

Iran’s export of mineral products in the first three quarters of the current fiscal year (March 20-Dec. 20) stood at 29.5 million tons worth $4.11 billion. This registered a 44% and 39% decline in volume and value year-on-year, respectively.

Steel topped the list of exports in terms of value with $2.17 billion and was followed by copper with $665.8 million and cement with $268.8 million.

In terms of tonnage, cement had the largest share with 13.22 million tons, followed by steel with 5.65 million tons.

Alumina powder exports registered the biggest jump in terms of value (234% YOY) to reach $1.3 million, followed by aluminum products with $155.8 million (up 82% YOY), ferromolybdenum with $9.6 million (up 189% YOY) and molybdenum with $22.9 million (up 4% YOY).

In terms of tonnage, aluminum products posted the biggest growth (108% YOY) to reach 92,050 tons, followed by alumina powder (up 93% YOY to reach 650 tons), rare-earth minerals (up 88% YOY to reach 60 tons) and zinc products (up 49% YOY to reach 155,170 tons).

In another update, IMIDRO said that by relying on local production, the mining sector has managed to reduce costs to a great extent.

The target is to save $1 billion by March 20 through localization, reads a press release published by IRNA.

By focusing on domestic potential, IMIDRO aims to help buttress the country's foreign exchange resources and empower local producers.

The mining sector managed to meet $350 million of the target during the first half of the current Iranian year (started March 20, 2020).

IMIDRO is optimistic about fulfilling the target, as it has been working on several development projects that are set to speed up the process of indigenization in the mining industry.

Iran is home to 68 types of minerals with 37 billion tons of proven reserves and 57 billion tons of potential reserves.

According to the United States Geological Survey, Iran holds the world's largest zinc, ninth largest copper, 10th largest iron ore, fifth largest gypsum and barite, and 10th largest uranium reserves.

Iran is home to more than 7% of global mineral reserves.