Necessity to modify the process of calculating the state rights of mines

Necessity to modify the process of calculating the state rights of mines
  • 2019-02-27
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Head of the National Iron and Steel Association's National Production Commission: Ineffective, island-centric behavior has led the mining sector, one of the few economic sectors in the country that has the potential to make a serious leap in the Iranian economy, to become self-evident and unproductive.

According to Iran's International Stone Exhibition, Sajjad Garaghi announced the pursuit of reforming the process of calculating state pay and said: One of the constant quarrels with the government and government is how to calculate state pay, which in the law of mines has been tried to maximize transparency, Consider avoiding varied interpretations.

The head of the National Iron and Steel Commission, however, added: "Despite this, the executive bylaws and subsequent notices have provided in some cases the opportunity to interpret the vote in favor of the government; Determines the percentage of government rights and their notification to the user at the time of issuance of the license.

He stated that in accordance with note three of the sixty-one executive bylaws, the Ministry of Mines, Industry, Mines and Commerce must review the percentage of state salaries once every three years, or, if conditions change, it is necessary to revise the percentage. Ministry recognition, this change is based on a plan put forward by the operator and approved by the ministry, but unfortunately something that remains largely ignored.

According to Garaqi, what actually happened was Ali al-Hassab's announcement at the end of the third quarter of each year and then the definitive number at the end of the first three months of the mining year, thus giving the miner no chance of predicting the costs of government rights. It does not commence from the beginning of the annual operation as well as during the operation and even at the end of the financial year, while the rate of increase of the base rate is fully unilaterally determined and communicated by the Ministry.

On the other hand, according to Article Sixty-one of the Executive By-Laws, the calculation of the state rights of each mine must be calculated separately and based on its coordinates and characteristics of the reserve, whilst the annual state law notices are generally regional and purely It is calculated with general indices such as grade.

Mines in terms of storage, grade, tailings ratio, topography, climate of the area, distance from export and sales, disturbing elements, environmental status, distance from industrial and service infrastructure, qualify for major differences, Garaqi said. However, not including these differences in the calculation of government rights would undermine the rights of different mines.

On the other hand, calculating and observing business conditions such as recession, inflation and boom, as well as consumer market conditions and mineral prices have a direct impact on the economic viability of mining, for example, raising or lowering base rates is expected Adjusted based on boom or stagnation conditions, while the 2013 experience showed that the market was falling and prices were falling, the Ministry of Industry increased the amount of government salaries that increased costs and exacerbated pressure on miners.

According to Garghi, increasing the capacity of the Chamber of Commerce to formulate applicable packages, develop negotiation paths with the government (government, parliament, effective bodies), consensus among miners, as well as future value chain of mineral products, activating legal capacities if appropriate. Failure to enforce laws by the agencies is one of the strategies to be followed, while our efforts will primarily be to enforce Articles Two and Three of the Law on the Continuous Improvement of the Business Environment.

He stated: In the above paragraphs it is simply mentioned that in the process of reviewing the laws, notifications, bylaws, the opinion of the specialized organizations should be taken. But compliance with these clauses has not been mandatory so far. And we will try to do that, while the second proposition is transparency in the calculation of the state rights of each mine through the state law calculation software that do not allow for varied interpretations of parameters and variables and the predictability of mining costs in relation to state rights. Be it.

"The mine area consists of six thousand mines, each with their own coordinates," said Garaqi. The governance structure of the mine, depending on the diversity and complexity of the existing one, relies on the centrality of an organization or a manager to exacerbate the contradictions and inefficiencies. The Coalition's approach for tomorrow is to design the optimal structure of mine governance consisting of all stakeholders, including government, small and medium-scale miners, associations, assemblies, related organizations, engineering systems.

In the end, he said, ineffective governance while island-centered behavior has led the mining sector, which is one of the few economic sectors in the country that has the potential to make a serious leap in the Iranian economy, to become unproductive and unproductive.