According to the International Iranian Stone Exhibition, in addition to the problems that private sector activists have within their collection, sometimes there are a number of factors outside their collection that make mining a natural process. According to some experts, these factors have made the future of private sector mines tragic and not good. Samat newspaper talked about the external problems that are imposed on miners with Vahid Saebfar, a member of the board of directors of the Tehran Mining Engineering Organization and the CEO of a mining company, which you can read below.

According to many interviews, you believe that the future of private mining will not end well; What are your reasons for this claim?

In the dictionary, the word tragedy means a difficult and difficult event that leads to tragic and even in some cases fatal consequences. Due to the reasons and evidence that exist in the country, including the existence of administrative bureaucracy and economic and cultural conditions governing mining, a situation has been created that private sector mining can be considered a tragedy and stated that in many cases the mines will not end well.  Due to my work experience in various fields and during the last 38 years, I have been in contact with many government mining institutions and mining companies. Especially during the last decade.

To date, what is the weakness of the private sector active in the field of mining, which has no bright future?

From the mid-1970s to the late 1980s, we faced a growing trend of domestic and foreign consumer demand for a variety of minerals, during which exports increased. For this reason, in that period, in addition to a significant number of real persons entering the field of mining, a large number of private mining companies were registered and set up. Because many of these companies could not afford it, from the late 1980s to the present, many of these individuals and companies have faced many difficulties in continuing their mining activities for a variety of reasons. Thus, the activities of private sector activists have been difficult and in many cases led to the liquidation of their companies. It can be said that almost all Iranian private companies operating in the mining sector are considered as a small mining company in terms of investment volume and type of activity according to international definitions. They often have limited financial resources and have to save money in all their activities, while as a general principle, individuals and private mining companies must continue to operate under optimal conditions in order to be successful. To be. If for some reason these conditions are not met, their continued activity and survival will be in serious danger.

What factors affect the performance of private mining companies?

The activities of private mining companies are overshadowed by two main factors, internal and external. Internal organizational factors depend on the mechanism and type of performance of individuals and components within the company itself, including the CEO, board of directors and other people present in the company. External factors also include economic, political, social, cultural conditions and government laws and regulations governing the country. Although in-house mining companies internal factors can be largely controlled and modified, external factors are not under their control or guidance. Unfortunately, the factors that are not under control have already created tragic conditions for the activities of private mining companies in the field of exploration, extraction and exploitation.

If we want to discuss in particular, what is the role of the Ministry of Industry, Mines and Trade in creating external factors?

There are many indications that the ministry, as an external agent, has sometimes slowed down mining activities. In this regard, some examples can be mentioned; The first case is the excessive length of the exploration license process due to the need to inquire about the status of the requested area from other government agencies and the time required to obtain answers to inquiries. The second case is the extension of the process of renewal of the exploration license due to the need to obtain a license from the Ministry of Industry, Mines and Trade of the relevant province from the Ministry. The third case is the prolongation of the time required to issue an exploration certificate or exploitation license due to the busy schedule of experts in the provincial industry, mining and trade organizations and the need to obtain a license from other government agencies such as the Natural Resources Organization and .... The fourth case is the neglect of part of the reserve declared in the final report of the exploration operation by the experts of the Provincial Organization for various reasons. Fifth, the need to prepare and submit a new exploration plan for the second mineral or other minerals in the area to be explored and the need to re-perform the hierarchy and administrative procedures required to issue a new exploration permit. Other issues in this field include exploring exploration plans, exploitation, and reporting the completion of exploration operations by experts from provincial organizations, which may take longer to resolve due to the need for re-inquiry. The long and complicated process of issuing exploitation licenses due to the need to obtain licenses from others. Government agencies and the issuance of various instructions and directives, which in some cases are issued without taking into account the views of mining activists, he noted. It is important to note that directives in many cases violate the rights of miners and leave domestic or foreign investors undecided.

How do you see the role of the Mining Investment Insurance Fund and banks in external factors?

I believe that the experts of the Mining Investment Insurance Fund treat the applicants for the facilities with some taste. This is especially true for exploration activities. Regarding the role of banks, the non-recognition of mining licenses as collateral for loan allocation can be mentioned even by the specialized bank of industry and mining. Also, the bank interest rate is so high that due to the long time required to explore and equip the mines, it becomes a significant amount when repaying, which is often difficult for the miners. Determining a short period of up to 60 months to repay loans is also a problem that is not commensurate with the time required to explore, equip and exploit mines.

 How do you see the role of the Mining Engineering System Organization?

Unfortunately, this organization sometimes has long and cumbersome administrative procedures in introducing or approving mining technical officials. We can also point to the weakness of accepting mining technical officials holding employment licenses in one province as technical managers in another province and the low skills and weakness of sufficient technical and managerial experience of many technical officials introduced by the mining engineering system. Poor technical skills often lead to a waste of time and unnecessary expenses.

Many miners complain about the existence of local opposition, what do you think?

Yes; Local dissidents are causing a lot of problems. Most of them claim ownership of lands in and around the mining area, which can be seen in all parts of the country and even in the most remote areas. Most of them are looking for sabotage in creating the necessary infrastructure for mining activities such as road construction, construction work, etc. Opponents have often sought to seek a share of the revenue from mining activities, and in some cases their proposed share is unreasonable. A small number of them also threaten miners to destroy machinery and facilities in the mining area if they do not comply.

Rising exchange rate is also one of the external factors, what effect has this had on mining activity?

Exchange rate volatility makes it unclear how much is needed to buy equipment for exploration work, including drilling equipment and mining. Expensive equipment required for exploration work has multiplied the cost of in-depth exploration drilling in the past year. The high cost of mining equipment is likely to have a negative impact on the economy. Due to the uncertainty of the rate of mining supplies and equipment in the future, we also see the weakness of purchasing mining supplies and equipment on credit; This is because many miners and mining service providers are unable to purchase the equipment they need in cash due to lack of liquidity.

What do you suggest to solve external problems?

External factors play an important role in the success or weakness of a private mining company. Each of these factors alone can cause stagnation and cessation of the mining company's activities and their dissolution or affect the mine; For example, the increase in the cost of exploratory drilling causes the private sector to reduce the number and depth of drilling, and as a result, this process of discovered mineral reserves is not credible. I hope that by examining the factors influencing the declining trend of mining activities, the government, as the main custodian of the mining sector, will be able to take serious and immediate measures to eliminate these factors. Eliminating or minimizing these external factors is a large, complex, and time-consuming task that requires extensive, long-term planning and culture building. In addition to the role of the government, the legislature and the judiciary, mining organizations and even universities and educational institutions have a stake. At the same time, the role of national media and publications in creating a culture and growing participation should not be overlooked.