Trying to make the mining sector profitable

Trying to make the mining sector profitable
  • 2019-02-13
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Head of Mining Commission of Iran Chamber of Commerce: Mining sector, especially small industries, can be used to attract liquidity and venture capital and create a lot of employment.

Among the indicators of the economy, GDP is one of the most important topics in the analysis, analysis and evaluation of the economy, according to Iran's International Stone Exhibition. GDP, which stands for GDP, is the total value of a country's goods and services produced at market rates over a period of time.

According to official statistics, mines in Iran account for one percent of GDP, while miners believe that by providing infrastructure as well as by facilitating mining laws, conditions can be created to increase the country's share of mining.

Trying to make the mining sector profitable

In this regard, Bahram Shakouri, head of the Iran Chamber of Commerce's Mining Commission, said: "Official statistics show less than one percent of mining's share in GDP, which I think has contributed to the low share of mineral products in the downstream industries. However, the real share of mining in GDP is 20 to 30 percent.

Shakuri said that the realization of the share of mining in GDP would give more support to this sector, stating: The central bank considers only steel in calculating GDP but recently the mining house has requested that the share of each mineral Consider separately.

He also emphasized that the mining sector, especially small industries, can be used to attract liquidity and venture capital and create a lot of employment.

The head of the Mining Commission of the Iranian Chamber of Commerce, noting that the total amount of investment in the mining and mining industries so far is about fifty billion dollars, reiterated: We need to make economic activities profitable so that people can invest in production rather than buying currency and coins. 

Infrastructure provision, mining development required

Also in this regard, Saeed Afzalipour, head of Yazd province's mining house, said: For years, mining activists have been calling on executives to support the mining sector in the country because their support is equal to increasing the country's mining potential.

He pointed out that increasing the share of mining in GDP requires infrastructure, he said: The first step is to create easy rules in the process of issuing mineral licenses, which must be done by the parliament; Facilitate mining by maintaining the required standards. This is not to say that the rule of law should not adhere to the principles of law, but rather to reduce the amount of administrative bureaucracy in the country.

The head of the Yazd Mine House, referring to the second indicator in facilitating the mining activity, stated: It is necessary to make a fundamental change in the responsibility of the governing organizations in the mine. Mining government organizations such as the Geological Survey and Mining and Imidro should cease operating and produce basic information, aerial and geophysical information, and make it available to activists in the sector.

Afzalipour pointed out the need for legal protection of the private sector, stating that the private sector should not be involved by various government agencies when it comes to investing in the mining sector. In my opinion, what matters most is to provide the conditions for investment in the mining sector. This is accomplished in several ways; first, it is the strengthening of the Mining Investment Fund. Therefore, the fund should be strengthened because it is a specialized fund.

He added that the cost of products in the country must be low, requiring access to monetary resources compatible with miners' budgets, low-interest loans, the ability to supply minerals and the mineral supply chain cheaply, meaning that miners, equipment Do not buy at their free rate because they will not be able to compete and cannot compete with neighboring countries.

The difficult process of attracting a foreign investor

"When conditions are not in place to attract a domestic investor, there is no doubt foreign investors are reluctant to enter the industry," said the miner. They review the status of the mining companies in the country and enter the country by study. Investors are always referred to as stingy gazelles who live in better climate wherever security is available.

The head of the Yazd Mine House continued: Attracting a foreign investor is always difficult, as conditions must first be provided for their entry into the country and, as noted, legal prohibitions do not allow this.

He pointed out that the mining sector is productive, stating: "Mining has a significant potential for job creation, so it is necessary to provide for the maturity of this sector." Mining countries Brazil, India, Germany and Australia first became economies by mining, then using the sector's high revenues to develop other sectors.

Afzalipour concludes: "I believe some officials are misleading people that the source of the pollution and droughts is mining, but the pollution that industries created in cities due to bad locations is far more dangerous than mines, but less so. They pay attention.