The mining sector’s investment policies will change

14 February 2012 | 13:57 Code : 6027 Geoscience events
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Iran’s Mines and Mineral Industries Development and Renovation Organization (IMIDRO) announced here on Sunday that the mining sector’s investment policies will change; stressing that investment ...
Iran’s Mines and Mineral Industries Development and Renovation Organization (IMIDRO) announced here on Sunday that the mining sector’s investment policies will change; stressing that investment in the mining sector should be as large as that in oil and gas industries.
Ahmad Ali Harati, who heads the organization, also said that the government of President Mahmoud Ahmadinejad will strongly support domestic and foreign investments, adding that the mining sector is planning to help reduce the country’s dependence on oil revenues.
The official further noted that the mining sector will supply the entire 45 million tons of iron ore for domestic production of 30 million tons of steel per annum.
He said mineral explorations have topped the organization’s mining sector development plans, adding that small coal mines will also be transferred to private companies.
However mining sector experts say the four-fold rise in mine exploitation-related taxes have killed the private sector’s incentive for investment, stressing that state-controlled mining activities are also not doing well.
They say the tax levied on mine exploitation activities has increased from 22,000 rials to 84,000 rials per ton in the past few years.
The government must reduce its grip on the mining industry, whereas it has been trying to increase its share in mining sector projects in recent years.
Iran’s mineral output is set to increase by 10 percent from last year’s 150 million tons in the year to March 2006. Some $186 million worth of minerals was exported in March 2004-2005.
Several mines have been left unexploited across the country due to lack of funds. This is while participation of foreign investors has not been encouraged in major mine exploration projects.

tags: QAZVIN


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