Private sector crucial for achieving 13 growth in mining sector

‘Private sector crucial for achieving 13% growth in mining sector’

TEHRAN – Mohammad Reza Bahraman, deputy head of the Iran Chamber of Commerce, Industry, Mines and Agriculture (ICCIMA), has stated that achieving a 13 percent growth in the mining sector is possible if the government assumes a purely supervisory role and leaves the execution of projects to the private sector.

In a recent interview with ICCIMA portal, Bahraman emphasized that the mining sector’s growth potential is immense, particularly as Iran holds significant mineral reserves, including copper, lithium, nickel, manganese, cobalt, zinc, iodine, and rare earth elements. These resources, which have seen market growth over the past five years, are expected to see substantial increases in global demand by 2040, requiring global investments of up to $1.7 trillion.

Bahraman added that for the mining sector to contribute to Iran’s economic growth target of 13 percent in the Seventh National Development Plan, the country must attract an additional 55 billion euros in net capital over the next five years.

He pointed to the revitalization of the Mehdiabad mine, which was revived by the private sector after 72 years of closure, as an example of successful private-sector involvement. Bahraman stressed the importance of private sector participation in driving growth, and emphasized that the government should only play an oversight role, allowing private entities to take the lead in economic development.

Reflecting on recent developments, Bahraman noted that the Iranian mining sector had seen an 11 percent increase in investment in 2023 despite a 26 percent decline in global funding for international projects. He added that energy imbalances and regulated pricing were key challenges facing the industry, which were discussed in a meeting with President Masoud Pezeshkian during a recent exhibition on the capabilities of the industry.

The exhibition, which was attended by senior officials, including President Pezeshkian and Minister of Industry, Mining, and Trade Mohammad Atabak, aimed to explore solutions to the sector’s challenges and was a platform for showcasing private sector capabilities. The event also included specialized discussions to explore strategies for achieving the targeted eight percent growth in Iran’s industrial and mining sectors.

As part of this ongoing effort, Bahraman highlighted the need for continuous collaboration between industry and academia, pointing out that approximately 320 students are currently involved in mining-related studies across the country.

EF/MA

source: tehrantimes.com