Arrows of sanctions on the mining economy

Arrows of sanctions on the mining economy
  • 2020-11-14
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With the change of the president and consequently some US policies, I hope that conditions will be created so that we can import quality drilling rigs and suitable equipment and supplies to the country and provide them to companies active in the mining sector.

According to the International Iranian Stone Exhibition, four years after the presidency of Donald Trump, our country, like many other countries in the world, was facing turmoil and negative news from the United States.

Given the circumstances that have arisen for Iran, especially the imposition of sanctions by Trump, we have also seen pressure on various sectors of industry and mining. Of course, experts believe that although the sanctions have created difficult conditions for the country, on the other hand, it has caused the flourishing of many talents.

One of the latest policies to put pressure on Iran was the trigger mechanism. According to Donald Trump, there was no need for the Security Council members to agree on the trigger mechanism and the spontaneous return of sanctions; Therefore, the US government announced the return of the sanctions, regardless of the opposition or agreement of the members of the Security Council, and in other words, recognized it. Although some believe this policy was more of an election game, it showed that Trump did not limit his policies to any law and continued to go extremist.

The mining sector is at the forefront of US sanctions
Asked how effective the Trump administration's sanctions had been in the mining sector, Abbas Naeemi, Imidro's deputy chief of staff, said: "The mining sector was at the forefront of sanctions when Trump left the UN Security Council. And petrochemicals began.

He added: "Fortunately, about two years after the withdrawal of the United States from Borjam, the effect of sanctions on the mining sector has been managed and largely neutralized. Also, due to the weak cooperation of the Security Council and key countries including China, Russia, France, Germany and the United Kingdom with Trump, his action did not have much impact on the mining sector.

He stressed that the imposition of sanctions is not a new event for Iran, noting that Trump's banking and financial restrictions against our country were fully established and large foreign companies refused to have direct contact with Iran.

Referring to the importance of maritime transport, he said: "As long as the international transport system, especially maritime, is in place, the state of the country's foreign trade in the mining chain will suffer little from the imposition of restrictions."

In response to the question how do you see the future of the mining sector, Naimi clarified: With the weakening of the rial, the mining sector is one of the areas that has witnessed the growth of sales and exports and is in a better position than other sectors in terms of liquidity and investment indicators. contract.

"East Asian markets are attractive to commodity exporters such as steel, copper, aluminum, zinc and lead," he said in response to another question about how much he thought China, Russia and East Asia could help the mining sector grow. Iran, like other countries, has a special view on expanding trade relations with countries in this field. Regarding the relationship with Russia, it should be said that this country is a major producer of commodities, including aluminum, copper, steel, zinc, etc. in the world, and mostly plays a competing role instead of a target market for Iran.

"China is an exception among East Asian countries," Imidro's deputy chief executive said, noting the importance of paying attention to Chinese markets. It consumes more than 50% of the world's raw materials and is Iran's largest export market; Thus, the role of this country in the development of Iran's mining and mineral industries is very key.

Avoid mining equipment

Vahid Saebofar, a member of the board of directors of the Tehran Mining Engineering Organization, said regarding the increase in the exchange rate and the imposition of sanctions by Donald Trump: "Unfortunately, Trump's policies during these 4 years have caused us to move away from drilling knowledge and mining equipment." In fact, because these equipments were so expensive and the exchange rate had risen, it was no longer possible to procure them in practice; In this way, the quality of deep drilling work in the country has decreased day by day and the position of mining in the economy has been weakened.

He stressed: "With the change of the president and consequently some US policies, I hope that conditions will be created so that we can import quality drilling equipment and appropriate equipment and supplies to the country and provide it to companies active in the mining sector. I hope they will make rational decisions Lead in this direction.

He noted the importance of government role-playing: "Low-interest and long-term loans are very effective in bringing equipment into the country." At present, $ 23,000 Tomans has made drilling more expensive every day, and the private sector is forced to distance itself from this important issue due to cost savings.

He stressed: "If we want drilling and exploration to reach its defined goals, we must provide the necessary conditions for it."

Show Trump
Ahmad Sharifi, Secretary General of the Iranian Stone Association, said that Trump could not do anything in practice, saying: "US pressure and sanctions could not create much of a problem for our country and the mining sector."

Sharifi said that in the past, US sanctions have been imposed on Iran, adding that although Trump's sanctions put additional pressure on the mining sector, so that the export of minerals was difficult, but economic activists were able to cope.

Referring to the trigger mechanism policy proposed by Trump in recent months, he clarified: The trigger mechanism would not make a difference to us even if it became operational; Because we have seen maximum sanctions. In this way, what Trump showed was a symbolic act, in other words, a campaign for the by-elections.

Asked how he sees the future of the country's mining sector with Biden, he said: "It depends on a lot of issues." I hope he looks at Iran more sensibly. Biden must build trust and reduce sanctions against Iran.

Concluding remarks
 Experts believe that by leaving Borjam, Donald Trump in practice showed his indebtedness not only to Iran but to the whole world; Of course, the United States could not affect Iran's mining sector by imposing various sanctions. The policies of this Republican representative pushed Iran towards the East, and Iran expanded its ties with East Asia, especially China. Experts conclude by hoping that with the arrival of Biden, the United States will soften its policy and look at Iran more sensibly.