According to the International Iranian Stone Exhibition, at the beginning of this year, figures based on the analysis of the economic markets of mining and mining industries were published by some mining media. According to the analysis, last year the exports of the mining and mineral industries fell by 18%. In the import sector, we also saw a 5% increase. Knowing that Iran is a mining country, it is expected that while capturing a major part of the world market, we will not need to import in this sector. Now the important question that arises is whether the decrease in exports and increase in imports can be considered as the shrinking of the mining sector and the mining industry? The reasons for the decline in exports of the mining sector and mining industries, its consequences and the solutions ahead are the issues that Samat has discussed with mining experts and activists. Stay with us:

Worrying imbalance

Hossein Hatami, a member of the Islamic Consultative Assembly, described the decline in mining exports as a wake-up call for activists and mine owners.

"Our mining and mineral industries have the potential to become an exclusive capacity for the country," he said. This means that in addition to the need for imports, our export sector has grown and we are known as one of the largest mining operators in the world.

He added: "According to the announced figures, the country's mining and mineral industries sector has experienced an 18% decrease in exports and a 5% increase in imports compared to the same period last year." This issue can be an important alarm for the mining industry and miners, because the balance of exports and imports of the country's mining sector is upset for the first time, and this imbalance seems worrying.

Restrictions on the global mining market in Iran

The representative of the Islamic Consultative Assembly considered the loss of world markets as one of the consequences of the decrease in exports and said: the announced statistics on the decrease of exports can be considered as an indication of the loss of a part of the world markets for the mining and mineral industries. Meanwhile, mining activists from other countries are looking for a suitable foothold for their mining industries in our domestic markets.

He added: "Therefore, in order to prevent the continuation of the current trend, it seems appropriate to take appropriate measures to eliminate the reasons for the decrease in exports and increase the import of the country's mining sector and mining industries, in addition to pathology." In this case, along with meeting the needs of the domestic market, we can see the expansion of the global market share of Iran's materials and mineral industries in other countries.

Export reduction factors

Hossein Hatami further said that one of the important reasons for the decrease in exports and increase in imports of the mining sector and the country's mining industry is the reduction of production in this sector.

In other words, he believes that the obstacles placed on the activities of miners and mining industry activists have led to a decrease in production and an increase in imports.

"One of the most important issues to be addressed in mining activities is the ability to develop the mining sector and the mining industry," he said. As you know, our country has good capacities in the mining sector and extensive measures must be taken to exploit them. It is also necessary to note that today there are many problems in the course of mining activities and these issues have made the situation difficult for miners.

Landscaping vacancy

The member of the Islamic Consultative Assembly introduced some restrictive policies as one of the important achievements of the mining sector and considered the lack of land management as the first problem in this field. He added: "An important issue that can be considered in the classification of problems of mining activities is the policies of this sector."

In the first place, the vacancy of land management in the mining sector of the country is very much felt. Thus, a suitable perspective has not been developed for land management in the mining sector and identification of mineral capacities for the optimal exploitation of these reserves. Thus, to date, we have not been able to be productive in proportion to the mineral reserves and resources available in the country, and the country's mineral exploration and extraction have been limited.

Environmental and mining cooperation

The representative of Kleiber and Horand and Khodaafarin in the Assembly of Names, believes that other cases of restrictive policies in the mining sector are the confrontations of the Environmental Protection Organization against the mining sector.

 "It seems that in discussing the impact of mines on the environment, we should raise and expand management discussions instead of using laws restricting mining activities," he said.

 In other words, the obstacles to the activities of miners have been removed and conditions must be created with the cooperation of mining activists and officials of environmental institutions to reduce the damage to the environment and expand mining activities.

In such circumstances, the mines will not be closed due to environmental regulations and nature will not be involved in serious problems.

 Therefore, reviewing and amending mining procedures is one of the important measures that should be on the agenda of government officials.

Production of alternative raw materials

Some mining activists consider the significant decline in iron ore exports to be one of the main reasons for the decline in exports of minerals and the mining industry, as last year saw the introduction of laws restricting the country's iron ore exports, which provoked many protests.

On this issue, Hossein Hatami said: "It is necessary to pay attention to the fact that the laws formulated on the issue of reducing iron ore exports are due to paying attention to the orders of the Supreme Leader of the Revolution to prevent the sale of raw materials."

Not only iron ore but also all minerals of the country should be included in the production process of the mining industry and their crude sales should be prevented.

He added: "In the field of minerals, if our export process is based on the sale of raw materials, even if there is a significant exchange rate, it seems appropriate to close the export route of minerals and mining activists to replace it with another way." Mining activists and mine owners in the country must move towards the conversion of value-added minerals and expand the chain of the mining industry.

Parliamentary support for production

Referring to the slogan of the year, this member of the Islamic Consultative Assembly introduced employment as one of the benefits of expanding the production cycle of mineral industries and said: with the entry of minerals into the cycle of production and development of mineral industries while increasing the value of minerals, sustainable employment Come and export in a wider area can be implemented. Also, with the development of the mining sector, the import of mineral materials and industries that can be produced in Iran should be prevented. In these circumstances, it can be said that the balance will return to the exports and imports of the country's mining and mineral industries.

He added: "It is necessary to pay attention that the Islamic Consultative Assembly will always cooperate with mine owners and activists to prevent development activities, because according to the orders of the Supreme Leader of the Revolution next year, all government institutions and officials must work to remove barriers to production." And to support producers and economic, industrial and industrial actors.

Development of steel industry

As mentioned earlier, iron ore accounted for a large share of the decline in exports last year. In other words, the existence of regulations to prevent the sale of crude oil has made the export route of iron ore uneven, and the export of this mineral decreased by more than 90% last year. The trend towards iron ore exports has many pros and cons. Opponents of the plan point to the closure of some iron ore mines and see the severity of economic pressures as detrimental to the mineral sector. In addition, some others spoke about the benefits of preventing rents in the iron ore and steel industry and considered the restriction of iron ore exports in favor of the country's mining sector.

In this regard, Jamshid Nafar, head of the Non-Oil Export Commission of the Iranian Chamber of Commerce, said: The existence of iron ore reserves in our country is an advantage and due to the existence of these vast resources, in recent years the country's steel industry has been able to grow significantly.

In order to make good use of this advantage, it is expected that a mechanism will be considered to regulate iron ore mining activities, including exports. Determining tolls on iron ore exports and making it difficult to support the steel industry can be one of the most effective measures for the optimal utilization of mineral capital. These restrictions allow minerals that are mined domestically to be used in the mining industry and strengthen their value chain.

Conditions for establishing tolls

Jamshid Nafar considered the acceptance of iron ore export duties conditional on the development of iron ore mines and steel industries and said: "If the use of resources and opportunities provided to the owners of mines and industries is directed properly, I agree with the existence of duties on iron ore exports." But if this opportunity is not used properly, the owners of iron ore mines will face many problems.

In other words, if iron ore is bought domestically by cheaper industries and industrial products are more expensive than the world price, and on the other hand, our steel industry is not able to compete with other global steel producing countries, this is wrong and the end result. The steel industry will be nothing but loss-making factories.

Moving towards industries

The head of the Non-Oil Export Commission of the Iranian Chamber of Commerce pointed out the importance of the value-added chain of minerals and considered one of the reasons for the restriction of iron ore exports to be the need to pay attention to the downstream industries of this mineral. "The basis is to move to downstream industries," he said. In the sense that mineral raw materials are introduced into the industrial cycle and their added value enters the market. In this situation, I agree with the imposition of tariffs on iron ore exports and consider it a stimulus for the development of the country's mining industry and mines.

He also added: "It is desirable to control the export and use of the country's mineral resources, because if the correct and optimal use of iron ore in the country's industries is not done, we will own factories and production facilities with great losses." In addition to all the financial and industrial problems that have arisen, instability and de-employment will occur in this sector. Therefore, the issue of entering upstream and value-added industries must be treated consciously.

Avoid rent

Continuing his speech, Jamshid Nafar considered the prevention of rent as another benefit of restricting iron ore exports and said: "Today is a good time to control the use of iron ore resources, their export and entry into the country's steel industry." In my opinion, the procedures announced by the Ministry of Industry, Mines and Trade and the controls that are being implemented through this ministry will be useful and will block the rents that are available to steel producers.

He further pointed to the role of mining activists and said: "If the steel industry and the iron ore sector of the country are to continue to make significant progress, all actors in the steel production chain should be optimized and the views of activists in this sector should be considered." In these circumstances, a correct and strategic decision can be made to develop the country.

Concluding remarks

If the decrease in exports means the shrinking of the mining sector, it is expected that we will not see it next year, because the mining sector and the mining industry have the capacity to become an important economic pillar of our country. These resources must be used properly.