Challenging the country's miners with worn-out machinery

Challenging the country's miners with worn-out machinery
  • 2021-01-27
  • .
The issue of worn-out mining machinery is one of the issues that has recently become a problem for the country's mining activists; Meanwhile, according to a member of the board of directors of the Mining House of South Khorasan Province, all the mines in the country are weak in machinery and have been paralyzed in this regard.

According to the International Iranian Stone Exhibition, last night a special news talk show was dedicated to examining the situation of the country's stone mining industry and the general situation of the country's mines and the challenges and concerns of the country's miners.

Siamak Haj Seyed Javadi - International Advisor of the Iranian Stone Association - attended the program, noting that more than 2,000 mining units in the country have mining licenses, clarified: Of this number, only about 1100 mines are active. Therefore, about 50% of the country's stone mines are closed and the remaining 50% are mined at half capacity. When it comes to strategic planning, you have to see the future for at least the next 20 years.

"There is $ 2 billion in trade from major competitors in the global market," he said. Turkey has reached 2.5 million tons of exports after 30 years; Therefore, we can not say that we want to achieve 140 million square meters in four years.

According to the statistics of the Ministry of Industry, Mines and Trade, the nominal capacity of Iran's mining units is 30 million tons. According to global statistics in 2019, Iran's total mineral production was eight million and 250 thousand tons; Meanwhile, the country's production in 2018 was 9 million tons, and about six years ago it reached 12 to 13 million tons.

Haj Seyed Javadi continued: "This shows that in the last few years, we have reduced production by an average of 400,000 tons per year." Unfortunately, there are no accurate statistics in the mining sector of Iran and it cannot be documented that there are really several units of stone cutting and processing plants in Iran; But according to unofficial statistics, there are between 6,000 and 6,500 units, of which about 1,000 units are inactive and the rest are operating at about 40% of their production capacity.

Pointing out that the domestic market is one of the biggest advantages of our country, the global market analyst said: "The domestic consumer market is about six to eight million tons, which supports the country's stone industry." Iran is the fourth largest producer of stone in the world after China, India and Turkey; Therefore, with accurate five-year planning, it is easy to reach a production capacity of 20 million tons per year, but we must meet domestic needs before exporting.

Mining machinery, the huge problem of the country's stone mines

The international advisor of the Iranian Stone Association, in connection with the problems of the country's mines and activists in this field in relation to mining machinery, which has become very challenging these days, said: Repairs and spare parts for these machines are very staggering and in themselves an important challenge. It is not even possible to import second-hand machinery, and miners have to procure worn-out machinery from the Isfahan market and neighborhoods.

Haj Seyed Javadi stated: Nowhere in the world does an investor or a miner do zero to 100 jobs himself; Therefore, financial facilities should be provided. The life of heavy machinery in building stone mines is at least 10 years. If foreign exchange is allocated and the Ministry of Silence and Customs does not withhold its support, it is easy to pay off all debts and generate added value with the income from mining.

He stressed how machines can be purchased when the central bank does not allocate the required currency; He said: Of course, 2000 billion tomans of facilities are very low for 2000 stone mineral units. Meanwhile, in the next stage, the miner will face customs and will face problems.

The advisor of the Iranian Stone Association stated that this issue needs macro-management on a large scale and the Ministry of Silence should act as a trustee and solve the problems with the Central Bank; He stated: The Ministry of Silence should receive the amount of 2000 billion Tomans from the insurance fund and buy machines. Of course, when we order 500 loaders and excavators, we also receive a more reasonable price, equipment and spare parts, and provide them to the miners on bail.

The global market analyst blamed the country's main weakness in exports on sanctions, currency transfers, and transportation costs. "Turkey, as our competitor, currently exports $ 30 to $ 40 per tonne of stone," he said. But the Iranian exporter for exporting processed stone to the European market is out of the market of global markets; Because it has problems with sea transportation and has to spend about $ 220 for land transportation, which is five times the cost of Turkey; Accordingly, our exporter is taken out of the shopping cart of global markets.

Haj Seyyed Javadi, regarding the way Turkey supports its miners, said: Turkey has full support for its industry, which includes the supply of machinery, banking facilities, participation in international exhibitions, manufacturing technology and machinery required for stone processing and . Therefore, in other words, the bed needed by the industrialist has been done in Turkey. With a strategy, Turkey has been able to reach the leader in the export of limestone from zero in 30 years.

Advisor of the Iranian Association, while pointing out that there are good granite stones in South Khorasan that are exported and have a relatively competitive advantage with other producing countries; He said: We play the first letter in the marble section.

Haj Seyed Javadi announced: It has been decided that the Iranian Stone Association, in cooperation with Imidro (Iran Mines and Mining Industries Development and Renovation Organization), will make a comprehensive report on the development of the Iranian stone industry in the direction of export; Of course, this action is still in the initial stage of preparing statistics.

 A Minister for Industry, Mines and Commerce; Strategic mistake

Ahmad Parvin - a member of the board of directors of the Mining House of South Khorasan Province - who also participated in the program in a visual way, while emphasizing that all the mines in the country are weak in the field of machinery and are paralyzed in this regard; He stated: In the Ministry of Silence, three major categories of industry, mining and trade have been given to a minister; This has been the biggest strategic mistake in planning. The conclusion is that for any issue in these areas, we should question the Ministry of Silence without considering the limitations of a ministry and its deputies.

He added: "This issue requires the government's determination to plan and formulate a strategy." We hope that the legislature and the executive will come to the conclusion that, given the large and tense nature of the mines, its strategic development is a specialized discussion that requires an independent ministry. At present, it is unlikely that we will be able to achieve the predicted goals with this structure. To solve the problems, the help of the government is needed.

The Mineral Insurance Fund did not cure the pain of the country's miners

This member of the board of directors of the Mining House of South Khorasan Province, while pointing out that the Mineral Insurance Fund in the Ministry of Silence has not cured the pain of miners, said: "There is no policy to supply and import machinery continuously;" As a result, our mines have practically become a graveyard of worn-out machinery. For many years, we have been having problems in the specialized machinery of stone mining, which is not domestically produced. Many of the mining machines we used to have were obsolete 20 years ago; But they are still working in the mines. With these machines that can not stay in competitive markets. The Mining Insurance Fund can be a solution; But since the establishment of this fund, according to statistics, it has not been able to have a successful presence in the mines.

In response to the lack of new machinery, Parvin stated: "Prices have increased to some extent, so in practice, the country's mineral investors in the field of decorative stone, who are generally small and medium-sized investors, are not able to do so." Part of this is related to the ruling bureaucracy, which is concentrated in Tehran. A number of machines have been imported but are not significant compared to the large number of mines.

He stressed: the laws governing the import of these machines and their currency supply must be properly implemented. No action has been taken in this area in recent years.

This member of the board of directors of the Mining House of South Khorasan Province stated that in the field of financing, all industries and services are dependent on banks; "We were deprived of some global banking services when the sanctions were imposed," he said. Therefore, our miners cannot open and supply the usual global LC. It is the duty of domestic banks to play a role in this regard and act in a supportive manner, but according to the latest statistics, the share of the country's mines in the portfolio of banking facilities is very low.

The main problems of the country's mines are the lack of heavy machinery equipment

Alireza Heidari, a stone miner, also said in a telephone conversation: "Most of our problems are in the equipment of heavy machinery, such as loaders and excavators." When there is no modern and up-to-date equipment, costs go up and we become uncompetitive. Our mine loader equipment was built in 1995, in other words, about 28 years ago. The technology of our cutting machines is almost 30 years old, which was reconstructed almost eight years ago.

Emphasizing that the lack of modern equipment in the world increases production costs and as a result keeps us away from competitive markets, he said: "If we have 50% of the equipment and facilities in foreign mines, in the field of granite, no global producer It can not compete with us in terms of quality or price.

This stone miner of the country, stating that in the last few years, no machinery has been imported in South Khorasan; He said: I have been working in the mining region of South Khorasan for 20 years, I have never seen second-hand machinery imported in this province.

Heidari also mentioned the lack of electricity as the main problem of stone mines and said: "Lack of electricity is a bigger problem than loaders and excavators (machines)."

A set of mining machinery is imported

 In a telephone conversation with this program, Saifullah Amiri - Director General of the Mining Industries Office and Deputy Minister of Mines of the Ministry of Silence - announced the news that a set of machinery needed by miners will be provided and provided to miners with conditions. It was signed to import a set of machines to the country to be provided to the miners. So far, a large number of machines have entered the country that are active in the country's mines. Some mines did not pursue this issue due to their low reserves, and the people who needed it have applied for and registered their orders in the last two months and imported machinery into the country after receiving the currency.

He said: The Mining Insurance Fund can pay about 300 billion tomans for facilities for machinery; Of this amount, we have already provided about 1,000 billion tomans in facilities and another 2,000 billion tomans remain. The fund accepts mining licenses as collateral; Therefore, in connection with the purchase of miners, they can apply for the purchase of equipment and machinery through the Mining Activities Insurance Fund and receive facilities.

Toll reduction is pursued to facilitate mineral exports

Director General of the Office of Mining Industries and Deputy Minister of Mines of the Ministry of Silence, while pointing to the problems caused by sanctions, said: "Exports have not been bad compared to previous years." Not only do we not stop exports, but we have also created conditions for exports so that in the working group formed in the Ministry of Industry and Mines, we can follow the toll package; We are looking to reduce duties so that exports can be done easily.

He added: "We are currently planning to reduce tolls." Regarding the cutting of stones with a thickness of one to 1.5 cm, considering that the thickness of the stone required for export is 0.5 cm, we try to produce the same 0.5 cm with the appropriate machines that we have, so that the problem Exports are resolved.

Amiri continued: A memorandum of understanding has been signed between the Ministry of Energy and Imidro (on behalf of the Ministry of Industry, Mines and Trade) for Imidro to pay 180 billion Tomans. This will be done to help transport.

The Director General of the Office of Mining Industries and the Deputy Minister of Mines of the Ministry of Silence noted: To achieve the Horizon 1404 program, such as granting financial facilities to mines and processing units, the impact of foreign investment in this sector and the development of cut stone exports. According to the production plan on the horizon of 1404, 180 million square meters of stone should be produced.

He added: "This program has progressed well so far; Of course, at one point we lost the market, which was not easy to gain, and it is necessary to try to regain the foreign market. Currently, there is a stone policy headquarters in the Ministry of Silence, and in Imidro, the issue of a strategic plan for stone exports is underway.

* ISNA