Mining growth away from the middleman

Mining growth away from the middleman
  • 2020-05-05
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Until the Ministry of Mines and Metals is revived and the country's mining system is separated from the industrial and commercial sectors, the industrial and mining sectors will not only shake, but will regress more and more day by day.

According to the International Exhibition of Iranian Stone, miners faced many problems last year, including the growth of export duties and the economic recession. Corona's crisis at the end of the year further doubled concerns. Given these circumstances, the question is what will happen to the miners this year, and how can economic activists in the mining sector move forward? Samat has spoken to experts about this.


The need to rebuild and modernize mines

Lotfali Bakhshi, a professor of economics, said that this year is a difficult year for everyone, including the mining sector. "Due to the continuing prevalence of coronavirus and the persistence of sanctions, the mining sector will be affected like other sectors and no special features can be considered for it." Took. Of course, it is too early to predict the future of the industry, and we will have to wait and see. It will be seen in a few months that Corona will be our guest.

Bakhshi described this year as "very complicated" and said that consumers and applicants for mineral products may not be able to do much in the process. The mine is a continuous chain at the end of which we come to the mining and export industries, which today, due to the Coronavirus virus, the global demand for minerals and products of the mining industry and consequently exports have declined sharply.

"As demand for oil declines, so does demand for mineral products, and our mines are losing some of their export market," he said.

"We need to look at how active our domestic industries are as consumers of mineral products," he said. In the domestic market, we see that with a few months of unemployment before Eid and a decrease in activities, the demand for mineral products has decreased to this day.

Asked about the situation for the private sector, Bakhshi said: "Our country has one of the worst business environments for private sector activity, and the situation in the mining sector is much more difficult than in other sectors." We hope that given the poor state of the business environment for the private sector, the government will think fundamentally and work to improve it.

Noting that the Corona virus has provided a good opportunity for the government to eliminate bureaucracy and past mistakes, the economist said: "The current situation is a good time for the government to finance and rebuild and modernize mines." With this policy, when conditions return to normal, mining activists can be more prepared to enter the market.

He stressed: "We hope that with the effective measures of the government and the elimination of corona, a more open environment will be provided for activity and business."

The need to revive the Ministry of Mines and Metals

 Peyman Afzal, a member of the board of directors of the Iranian Mining Engineering Association, stated that the future of mining in our country depends on actions in other sectors: "One sector cannot be considered separately from other sectors."

Referring to the two issues of sanctions and the Corona crisis, the university professor said: "One of the existing problems is the sanctions that affect the export of minerals and the mining industry, and the other problem is the Corona crisis, which has affected global prices."

He continued: "Although we will see an increase in prices after Corona, it is not clear when this will happen. The important thing is to understand when the mineral markets will grow and stabilize.

He noted that the Corona crisis has led economic activists to expand their green industries, saying that minerals such as lithium, rare earth elements and materials used in clean energy will definitely have more market share. Elements that were traditionally used and polluted for the living environment, including lead in the consumer market, will face stricter protocols and will face lower prices in the near future.

Referring to the mining process in the country, a member of the board of directors of the Iranian Mining Engineering Association said: "Unless we revive the Ministry of Mines and Metals and separate the country's mining system from industry and trade, the industry and mining sector will not only shake but regress more and more." Will go.

 Afzal emphasized: "Unfortunately, the commercial sector is looking for brokerage and is looking at the mine as an export and quick-return product." Thus, regardless of the growth of knowledge and technology, it seeks a culture of speculation.

Another problem is that our industry is very large and has always covered the mine, so we need an independent organization to mine.

Noting that the mining sector has a high but time-consuming return on investment, the professor continued: "As long as the government does not have this view and considers the mine as a sector that must be converted into money very quickly, the result will be that." Exports of raw materials are growing, and mining industries are being set up anywhere in the country without thinking.

He stressed that the mining sector should be managed professionally and the presence of brokers in this sector should be prevented.