NEWS: Mining Finance: Investing in Iran getting 'easier'

With a treasure trove of 68 minerals and the government's will to bring in international capital, investors were told that they should be looking at Iran as a business prospect for mining commodities including dolomite, bauxite and rare earths.

Iran is keen to attract external business partners to invest in local mining companies, exploration projects and pursue business opportunities within the country, delegates heard at the Global Mining Finance conference held in London on 13 October.

After a full decade when international investors have been absent from the Iranian economic environment due to western sanctions, the lifting of trade barriers is creating opportunities to exploit the large local mineral resources, according to Farzad Moshfeghi, founder of UK-based financial consulting company Finity Asset.

"Exploring or investing in Iran has become easier and simpler than in other countries," Moshfeghi told attendees in London.

There are over 5,000 operational mines in Iran at present, extracting 12 metals and 36 non-metal ores. Metallurgical and non-metallurgical deposits are estimated at a total 55bn toes.

Additionally, the country’s large territory holds reserves in 68 types of minerals, worth an estimated $700bn.

The majority of operational mines (about 90% of the total) are owned by the government, mainly through state-owned companies. State-controlled IMIDRO is the largest, with a big portfolio of mining projects.

"Most of the mines are state-owned, but the government is actively looking for investors," Moshfeghi said.

"There are mines in Iran that are commercial. Many of these mines will need technology [updates]," he told IM.

This confirms what IM heard at the 23rd IM Congress in Prague this summer, when Iranian speakers highlighted the need to improve processing technology at domestic mining facilities, to achieve better efficiency and quality of mining output.

Sanctions

Moshfeghi acknowledged that despite the lifting of trade restrictions, a number of other limitations on financial operations remain in place, and it is unclear when these will be phased out. Operating in US dollars remains difficult, for example, as is business between Iranian and foreign banks.

As an exhibitor at ceramics trade show Tecnargilla told IM in September: "Western banks still don’t operate with Iranian banks. We hope it gets better but, for the moment, it’s impossible [for us] to do business there."

Moshfeghi stated that it will be political factors such as the outcome of the approaching presidential elections in Iran and the US that will determine whether the process will continue.

At the same time, he told IM: "People and businesses are expecting change, and I don’t expect this process to [be derailed]."

Dolomite

Moshfeghi stated there is an opportunity for Iran to enter the international minerals market with a view to balance out China’s quasi-monopoly on some mineral commodities.

He named dolomite as one of these. Iran holds large deposits of the refractory mineral, of which China controls about 80% of global supply.

Dolomite was listed by the European authorities as one of the so-called 'critical minerals’ of which Europe would need to ensure stability of supply in the coming years.

"Iran can definitely play a role in dolomite exports," he told IM.

Besides dolomite, he named rare earths, bauxite, lithium and chromite as other noteworthy industrial minerals that investors should look into.

Reference: Link

برچسبها: Industrial Minerals, 2016, news