According to Iran Stone Exhibition, one of the criticisms of the miners is that their license is not accepted as collateral by the bank and the bank does not pay the loan.

While the law on mines states that banks are required to obtain operating licenses as collateral, this has never been enforced. According to experts, the most important facility for small-scale growth is that banks will be granted collateral, and miners will be required to borrow real estate, bank deposits and everything else. They can bail their mining licenses. Samet talked to Farid Dehghani, CEO of the Mining Investment Insurance Fund.

What is the Mining Investment Fund?
The Mining Investment Insurance Fund is set up in accordance with Article Thirty-One Mining Law to Protect Small Private Mines. The fund's function was initially to cover investment risk in the exploration sector, in fact because investment in the exploration sector is highly risky and the private sector is reluctant to invest in the exploration sector, and also the development of the mining sector begins with exploration as the first link The development of the mining and mining industries has raised the issue of fund sovereignty to cover investment risk in the exploration sector, but today the fund's operations are increasing and we are more concerned with mining concerns than ever before.
One of the problems that miners face is that the bank does not accept their operating license as collateral. What facilities does the fund provide for the treasurer?
We have tried to facilitate the access of bankers to the resources of the miners and processors. Given that all mining assets include machinery operating on the mine site and mining operation licenses and total private equity mining is the case, these assets are not acceptable to the bank, the fund says. To solve the problem, we review the development or processing plan and then provide the bank with a credit insurance or bank guarantee. In fact, we remove the operating license and the bank has nothing to do with the collateral. In the process, the bank accepts the technical, economic and pre-factoring reports we provide. That is to say, we take care of all the resources we get from the bank and the miner is no longer on the side of the bank. Of course, we ask the miner to take into account credit, financial and return checks, which are in accordance with the Bank's regulations and the Money and Credit Council and Central Bank regulations. With this functionality, our fund facilitates miners' access to bank funds.

For what compelling reasons does the bank refuse to accept the mining license as collateral?
The law expressly states that banks are obliged to accept operating licenses as collateral, but banks do not accept this for legal reasons. Banks have legal arguments that may be acceptable but not for the miner. A case in point, for example, is that the bank proposes that what is pledged should remain the same. You put up a land for collateral and the conditions are the same as a land pledge, but when you put up a license as collateral, the amount of minerals decreases every time, so the value of the collateral at the bank is constantly decreasing. There are other arguments that make sense for the bank. Of course, we should know that the business of financial intermediation is bank, and because its resources are for others and only an intermediary between depositors and recipients, profitability and risk reduction are prioritized. Because of this problem, our fund has become an intermediary between the bank and the miner for the provision of facilities. The High Council of Mines has given us, as a sovereign body, the responsibility to act as an intermediary.

One of the mining problems is the acceptance of investment risk in exploration and processing. How can the Fund help in this area?
We also manage this issue and give the miner and processor the message that we can cover the risk of their business cycle, so we take the risk from the miner and accept responsibility. For example, if a person has invested 100 million tomans in the exploration sector and has failed, then the insurance fund can return up to eighty percent of the amount. If the individual explores a range that reaches the ore, but if the first ring does not reach a certain mineral, we will take that range from the individual and return the cost to him. On the other hand, if they manage funds with the assistance of the Ministry of Industry, Mining and Commerce with the assistance of the Ministry of Industry, Mines and Commerce and the technical assistance they need to explore the resources, the fund will reopen and we will do all the business of credit and investment insurance. We also do risk management to process product and business cycles that can affect the market. Someone who wants to set up a processing unit gives us the processing plan, then gets 30% of the cash needed, and the other 70% can get the facility with our insurance policy. It needs to come to us because the bank does not accept the project as collateral, while we take the project and mine as collateral and deliver insurance so they can get the facility.

What are the requirements for a miner requesting facilities?
There are all conditions for obtaining facilities and insurance for exploration, extraction and processing on IRANCOM site. Almost all private sector miners can come and enjoy fair and easy conditions. To facilitate this, we have set some requirements, first of all we have provided the whole service online and the applicants do not need to go to Tehran. We have also set up a fund desk in each province that is responsible for the mining engineering of each province, and in some provinces, including Yazd, West Azerbaijan and Khorasan Razavi, we have branches and agencies covering each of the five adjacent provinces. For example, in order to mitigate risk in the discovery area, one has to buy insurance, put forward a discovery plan and provide step-by-step data to reduce risk at each step. In the end, if you do not reach the ore, the contract will work. The amount is different depending on the amount of insurance you buy, which is between one and a half to three percent of the amount of investment that one wants to make. As a result, the amount for different minerals varies, but the small details are listed on the Mining Investment Fund's website.

Your collection has been active since year 6. Why is it not known among the miners after eighteen years?
Unfortunately, the miners are not very familiar with our collection, so when we asked most of the miners we didn't get any feedback from them in practice, so we realized we needed to get to know the fund and its services more. We set up workshops and delivered many lectures. Another reason they did not recognize us was that the collection was initially very small and came with a capital of ten billion tomans. It may have been a very good investment for the mining sector in Year 2, but by that time our capital had not increased and the Government of the 9th and 10th had no budget for it. After year 2, the capital amounted to one hundred and ten billion tomans, and this year it increased to one hundred and forty three billion tomans. By the efforts of the management team of Imidro & Associates, we try to raise this capital to 300 fifty billion by the end of the year because we cannot do anything if our capacity in the mining sector is low and we cannot operate if the capacity of the mining sector is incompatible.