What effect does the 25-year agreement with China have on Iran's mines?

What effect does the 25-year agreement with China have on Iran's mines?
  • 2021-04-08
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Secretary General of Iran's Youth Chamber of Industry, Mines and Commerce: We have to see in the 25-year contract, it specifically states whether the Chinese will invest in Iran's mines and mining industries. This is a question that the government must answer. If the government can provide this field and possibility, provided that they can use the power and workers of Iran, they can work in the field of mining and mineral industries of Iran with much higher productivity than us, and this will make this sector prosperous.

According to the Iran International Stone Exhibition, the Secretary General of the Iranian Youth Chamber of Industry, Mines and Commerce said: "Using Iran's labor force and Chinese capital and technology, Iran's mines will prosper with a 25-year memorandum of understanding between Iran and China."

Shahram Shariati, Secretary General of the Iranian Youth Chamber of Industry, Mines and Commerce, said about the Chinese performance in Iran's mines: "Although China is not the world's leading technology, or perhaps has not provided us with its superior technology, we must accept that China is one of the world's five largest economies." If we look realistically and statistically, it is one of the two largest economies in the world. That is, China and the United States are currently leading the world economy together.

He added: "The Chinese have always been useful in Iran's mines, including metallic, non-metallic and precious stones, and their technology, even if it is not up to date with the world technology, has met many of the needs of our mining industry." In recent years, we have both learned and borrowed from the Chinese.

The Secretary General of the Iranian Youth Chamber of Industry, Mines and Commerce emphasized: "Although we may not have been able to cooperate with first-class and first-class Chinese companies, the same companies that have entered Iran have significantly advanced Iran's mines and mining industries in recent years." Have moved.

Reacting to the question of whether one can be optimistic about the Chinese entering Iranian mines, Shariati said: "One can certainly be optimistic because China, in addition to having mining technology, is a mining country and has made large investments in many countries in the Middle East and Africa." The arrival of the Chinese in Iran's mines and mining industries is a pleasant event and does not mean that the Chinese want to take over our country.

Is there a capacity for Chinese investment in Iran's mines?

Secretary General of the Iranian Youth Chamber of Industry, Mines and Commerce in response to the question of whether the Chinese have the capacity to invest in Iran's mines? He said: "The Chinese's job is to invest in areas that have high financial feedback and return on investment, and they will never enter the investment debate without justification. In fact, we have to provide this for them.

He explained: "We have to see in the 25-year contract, it is specifically stated whether the Chinese will invest in Iran's mines and mining industries or not." This is a question that the government must answer. If the government can provide this field and possibility, provided that they can use the power and workers of Iran, they can work in the field of mining and mineral industries of Iran with much higher productivity than us, and this will make this sector prosperous.

"We can give many abandoned mines to the Chinese to increase our production efficiency," Shariati said. Therefore, we must provide the ground for this to happen using the Iranian labor force, Iranian management, Chinese capital and even Chinese management.

Is the result of Iran-China cooperation in the mining sector beneficial for the private sector?

Secretary General of the Iranian Chamber of Industry, Mines and Trade in response to the question of whether the result of cooperation between Iran and China in the mining sector is beneficial for the private sector? "We should not think that China is going to work only for the Iranian government," he said. Long before the Iranian governments recognized China, the Iranian private sector turned to China, and we saw the benefits of Chinese technology in metallic, non-metallic, and valuable mining industries. So I think the Chinese can take that step very well. The government must be transparent in this regard, because this is a privilege for Iran's mines and mineral industries.

He continued: "If China enters the mining and mineral industries of Iran and the government provides the details of this presence to everyone, it will be an effective and useful step for the future of Iran's mining and mineral industries."

Shariati added: "If new capital and technology enter Iran's mining industry, the share of mining in the country's GDP will increase sharply, which can create employment and develop infrastructure." So, although in some areas not all the angles of the Iran-China memorandum have been defined for us, let us remember that the foreign investment position we have been talking about for years is now available to us and we can consider the advantages it can have for Iran. Well, let's look at this agreement and make it operational and be able to bring Chinese capital and technology to our country.