The irreplaceable impact of mining on the economy

The irreplaceable impact of mining on the economy
  • 2020-09-15
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Increasing GDP is one of the things in which the mining sector can play a significant role. Many other sectors of the economy are directly and indirectly dependent on mineral production; For example, construction in the country depends on many mines, including building stone, cement and gypsum, ceramics and various metals.

According to the International Iranian Stone Exhibition, the role of mining in the economy is irreplaceable, which means that no other sector can play the economic role of mining. Since the geological and mineral situation of the country is such that the country's mines are located in many different regions, especially the deprived areas of the country, activating the mining capacities will activate the economy of different regions of the country. Although oil is concentrated in only one part of the country, the expansion of mines in different parts of the country creates significant employment and income for these disadvantaged areas.

This significantly reduces the suburbanization of large cities and prevents people from other areas from rushing to the outskirts of large cities due to economic issues. When mining capacity is activated in deprived areas, many of the infrastructures needed to expand other economic and social activities, such as roads, railways, electricity, water, etc., are provided and cause the growing growth of deprived areas. Thus, along with the development of mines, we will see the development of the economy of deprived areas, job creation and the activities of other economic sectors in the country.

It should be noted that investing in the mining sector is long-term and high-yield; For example, with the activity of Tabas coal mines, we also witnessed the construction of railways, roads and airports. We also witnessed the dynamism of Kerman province with the activity of Sarcheshmeh copper mine.

We must note that mining also affects the macroeconomy. Increasing GDP is one of the things in which the mining sector can play a significant role. Many other sectors of the economy are directly and indirectly dependent on mineral production; For example, construction in the country depends on many mines, including building stone, cement and gypsum, ceramics and various metals.

It should also be said that the development of mining activities will increase Iran's position in the world economy. When a country has products, it somehow makes other countries dependent on it. The issue of economic dependence of other countries on one country will increase the bargaining power in world politics. This issue directly and indirectly affects the economic and trade exchanges of our country and other countries of the world and strengthens other economic components of the country.


Homayoun Katibeh - University Professor - Samat