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Karbasian: Mining Industry share in national economy should be raised

(IMIDRO) - Changes in the top management of the Ministry of Industry, Mine and Trade in the first step began with the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) when Dr. Mahdi Karbasian was appointed as Deputy Industry Minister and director of IMIDRO.

IMIDRO is among development organizations which has gone through many changes in recent years in its top managerial level; changes which have caused problems in the way of implementation of anticipated plans for the organization and delayed the projects under implementation.

After coming into power of the new government, this organization witnessed some changes. Dr. Karbasian has worked as Managing Director of the Social Security Organization (SSO) in Akbar Hashemi Rafsanjani’s government, has been a member in the High Council of Social Security and First Deputy Economy Minister in the government of Mohammad Khatami. He has also served as Chairman of Board of Directors of Retirement and Welfare Funds of the oil industry staff. Since he took the helm of IMIDRO, in line with government policies, favors for greater participation of private sector in investment, construction and implementation of mining projects. Dr. Karbasian believes that mining industry is one of the most valuable national resources that can develop and increase its share in GDP of the country.

In a detailed interview with Tejarat Farda Magazine, Dr. Karbasian pointed to his recent visit to Tabas underground coal mine during which he observed closely tough conditions of miners working that led him to order necessary measures to improve safety conditions.

Asking about the role that plays IMIDRO in economy, he said considering the current situation particularly resilient economy, IMIDRO can have effective performance because the mining industry isn’t dependent on foreign help and its local development is achievable and can have critical role in economy growth.

However, he acknowledged that several major mining projects including seven steel projects, graphite electrodes project and Zarshoran gold have been suspended for years or had a slow progress due to various reasons such as financing problems, mismanagement in previous government and western sanctions.

Dr. Karbasian added that since he came to IMIDRO, the organization managed to activate the semi finished projects worth of 700 billion toman in second half of last Iranian calendar year.

According to Dr. Karbasian, the share of mining industry in GDP growth is 0.5 or 1 percent a year that considering the 60 billion tons of minerals reserves in the country, is very low. Annually Iran mines around 400 million tons of minerals from 6000 mines that should be raise to 600 million tons.

 He noted that the amount of reserves is significant as just 7 percent of our territory is being explored up to now and probable reserves of remaining 97 percent haven't been identified yet. In addition to huge minerals reserves, access to free water along with rich gas resources enable Iran to activate energy intensive mining industries in south of the country and become aluminum production hub in the Persian Gulf region and export aluminum.

Asking about steel sector, director of IMIDRO stated that 55 million tons of steel output is targeted by 2025 but the major bottleneck in mining industry is exploration. In order to increase steel production, we need to supply more iron ore so IMIDRO planned to explore iron ore deposit in an area of 200,000 square kilometers. Already the exploration project of 12000 square kilometers in iron ore rich area of Sangan has begun and exploration in 48000 square kilometers in Sistan and Baluchestan province is underway. Also exploration activities in an area of 30,000 square kilometers are set to begin in Central Iranian Plateau within two months.

Dr. Karbasian estimated that Iran's total minerals reserves worth 700 billion dollars and start of new exploration activities can double this figure. Iran holds 68 types of minerals as well as rare earth resources that can be exploited so by boosting exploration activities, one of the major hurdles to development of the sector would be removed.

He also gave the latest data on iron ore reserves and announced there are 2.5 billion tons of proved iron ore reserves and probable iron ore reserves are estimated around 4 billion tons. In Sangan and Saravan that exploration has started recently, the iron ore reserves can be doubled. Of this amount, Iran produces 48 million tons a year; 23 million tons of the output exported last year and the rest of it converted into concentrate and pellet and supplied to steel mills.