Small mines need investment

Small mines need investment
  • 2020-04-15
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The head of the Mines and Mining Industries Commission of the Iran Chamber of Commerce and Industry believes: "According to the production leap program in the form of equipping and modernizing mines, we need to invest two hundred and forty-seven billion tomans annually in small-scale mines."

According to the International Exhibition of Iranian Stone, "Bahram Shakoori" explained: "Calculations show that in addition to investing in small-scale mines in order to develop the mining sector and achieve the goals of mineral production on the horizon of 1404, annually in large-scale mines Two hundred and forty-nine million euros (foreign exchange) is the investment needed to finance it.

He pointed out that financing has always been one of the biggest challenges for activists in this sector and it is expected that this year the possibility of using mineral licenses to mortgage and guarantee bank facilities and the possibility of improving production products to obtain working capital facilities to facilitate financing of mining units. Especially small-scale mining is possible.

Shakoori added: "Financing in the small-scale mining sector by providing facilities to contractors and miners by the Investment Insurance Fund provides mining activities based on strengthening and increasing the fund's capital, as well as financing in the large-scale mining sector."

He reminded that the financing of large-scale mining by large mining companies (employers) from the sources of sales of their export products and by providing guarantees, to support their contractors and the employer to deduct the relevant installments from their status.

According to him, large mining companies (employers), with the permission of the relevant institutions, will buy machinery for their contractors and lease it to them on the condition of ownership.

Shakoori added: "Now, considering the current situation, we can rely on the use of foreign exchange resources of the National Development Fund, and this is possible."

"Today, in the field of foreign trade in the mining and mineral industries, along with US sanctions, the spread of the corona virus has reduced global demand on the one hand, and reduced exports and imports across land and air borders," he said. The prices of export products have disrupted trade with the country's first trading partner (China) and its partners.

He added: "This year, more than ever, there is a need to strengthen economic diplomacy and activate economic advisers to develop exports and branding of mining products and mineral industries."

He reminded: "Today, if the activists in the field of mining and mineral industries feel that there is no applicant for their products in the country and abroad, not only the production jump will not be realized, but also the fear of production stagnation may arise."

"This year has been named 'Production Jump' by the Supreme Leader of the Revolution, so performance is expected beyond last year, but the Corona virus has imposed its shadow on all economic activities, so facilitating and improving the business environment is the best," he said. The solution to the challenges of mutation is to produce and deal with the economic effects of corona.