IMIDRO, Private Sector Inked Investment Contract on Iran’s Largest Zinc Project

According to the report of the public relations of IMIDRO, the investment contract signed between IMIDRO and a consortium of 6 private companies on mine operation and construction of zinc, lead and silver plants leading by Mobin mining company valued at one billion dollars.

Based on the contract, plants will be constructed with production capacity of 800 thousand tonnes zinc concentrate and 80 thousand tonnes lead and silver.

Industry, Mine and Trade Minister expressed: “This contract is the largest zinc contract in Iran and its role is very important in supply of raw material for lead and zinc industry in the country, so this point was evaluated accurately in the contract”.

Nematzadeh added:” it’s predicted that the plants will go on stream by the next 4 years. Also, on time act of private sector will lead to privileges for motivating them”.

He continued that total contract duration time for mine operation is 25 years .In this contract , cooperation of state- owned organizations will help motivation of private sector in order to invest and develop mine sector without any anxiety. So, proper fulfillment of commitments may lead to extension of contract time.

Industry, Mine and Trade Minister invited private companies which have high investment, technical and engineering abilities to participate in different parts such as mining sector and noted there are some intact parts in mining sector now.

Alliance of Private Sector on $1Billion Plan

During the meeting, chairman of the board of IMIDRO announced that signing of this contract was in line the acts were promised at the beginning of the 11^th government that will lead to 1000 direct and 3000 to 5000 indirect employment.

Karbasian noted that Yazd’s Mehdiabad has one of the largest zinc mine in the world .It has 154 million tonnes reserves including 88 million tonnes zinc sulfide and 66 million tonnes zinc oxide .Its predicted that these reserves increased to 700 million tonnes by the completion of exploration projects.

He expressed that regarding the reduction of Angoran reserves in Zanjan province in next years in one hand and preparing 457 thousand tonnes production capacity by private sector on the other hand, it’s necessary to enter Mehdiabad mine to activity.

Investment Scenarios

Bahram Shakouri, CEO of Mobin mining company said: “We have two scenarios for investment in this project including conducting joint venture with world’s large mining companies, so we recently negotiate with Switzerland and Spain and market is being determined”.