In post-sanctions era
An Attractive Station for Foreign Investors
Some 140 companies from 29 world countries attended the two-day
Iranian Iron and Steel Conference which was sponsored by IMIDRO.
sector under the sanctions like other economic sectors and due to being
connected to the world market was faced with numerous problems such as
reduced rate of investment, lack of import of modern machinery and equipment
and ultimately banking sanctions for the sale of products and purchase of
equipment. Naturally with the lifting of the sanctions it is hoped that
through appropriate interaction with the world we will be able to leave
these problems behind gradually. Now with the gradual lifting of the
sanctions, the questions raised in many professional circles are: The
economic future of the mine and mining industry sector; the decisions and
policies which should be adopted in order to get out of the present
lifting of the sanctions would take a specific time process in order to have
its effect on different mining industries. Based on the similar experience
of Myanmar and South Africa, it is unlikely that after the elimination of
restrictions imposed by the sanctions the country can make rapid growth. Of
course it should be noted that major changes after the removal of the
sanctions and the process of reconstruction and economic recovery, can
significantly affect the political, economic, and social background and
basis of the countries. In the case of Iran, given that the sanctions were
imposed gradually and within a period of 10 years, no major changes occurred
in the countryís economic financial system so that a new situation would
cause problems; yet it should not be forgotten that policies which were
adopted for confrontation with the short-term impacts of the sanctions will
undoubtedly produce plenty of negative long-term results.
we have collected a lot of experiences in our backpacks and at the same time
have a promising and bright future ahead and do not want to look back at the
The mine and
mining industry sector follows its own specific complications. Supply and
demand in this market depends on many factors. Chinaís stock exchange is
considered to be one of the largest incentives for the mine and mining
industry sector. Meanwhile, regional and domestic developments have
outstanding effect on the prices. However, we monitor the four corners of
the mine and mining industry market in order to make the best decisions for
the next 10 years ahead. In these decision makings we will pay special
attention to foreign companies.
As it is
obvious, Iranís mine and mining industry sector has been one of the
attractive stations for foreign investors. Since the 14 July agreement in
Vienna, Austria, up to date (19 September 2015), some 11 high-ranking
delegations from Italy, Spain, France, Germany, Austria, Switzerland, the
Czech Republic, Poland, Japan, Turkey and Afghanistan have visited Iran.
Also, officials from Britain, South Korea, China and other powerful
countries have visited our country and held discussions with Iranian
partners. In 80% of the above cases, expert meetings were held for bilateral
development of the mine and mining industry sector and IMIDRO (Iranian Mines
and Mining Industries Development and Renovation Organization), in addition
to holding negotiations for the development of the country, has also
supported presence of the domestic private sector beside foreign investors.
we decided to hold a specialized conference in Iran with the focus on steel
continuum. This event took place with the participation of the Metal
Bulletin in order to bring us a step closer to international markets.
international Metal Bulletin institute started its activities 102 years ago
in ferrous and non-ferrous metals and markets by publishing a magazine under
the same name and later developed its activities by holding international
conferences. The institute is now holding more than 60 conferences
throughout the world annually. Metal Bulletin has held conferences with
topics related to Iran outside the country, including in the Persian Gulf
countries. Following the July nuclear deal between Iran and the P5+1 and
after follow-ups by the Iranian authorities, including IMIDRO, it was
decided to hold the 2015 conference on the beautiful island of Kish.
This was the
first international mine and mining industry gathering in Iran which was
hosted on Kish Island. Some 400 guests from inside the country and around
the world attended the event so that the big presence of major foreign
companies surprised both the guests and the organizers.
released by Kish Conference Center show that 55% of the participants were
mine and mining industry giants with some visiting Iran for the first time.
Meanwhile, the European companies and experts with a share of 20% allocated
the largest number to themselves followed by East Asia and Australia
with15%, the Middle East with 15% and North America with 5%. The remaining
45% were Iranian experts and directors.
from Australia, Japan, Germany, Finland, Britain, Oman, Italy, Russia,
India, Turkey, China, Belgium, the United Arab Emirates, etc. were present
some of whom had face-to-face meetings with myself and other officials of
IMIDRO and more importantly a number of sessions were held for further
acquisition of foreign and Iranian companies with each other.
companies from 29 world countries attended the two-day Iranian Iron and
Steel Conference which was sponsored by IMIDRO. According to the officials
of the Metal Bulletin, the event was beyond expectations. Creditable
companies such as Essar, Kobe Steel, MCC, MME, Nippon Steel, Mitsubishi and
Auto Tech as well as major Iranian companies in mine and mining industry
sector such as Sangan, Khuzestan Steel, Mobarakeh Steel, Isfahan Steel Mill,
Ianís National Steel Company, Oxin Steel and some other companies active in
the downstream industries were also present. This, together with scores of
specialized sessions for holding face-to-face talks is indicative of the
importance of the position of Iranís mine and mining industry sector for the
conference, domestic and international directors and experts examined Iran
and attraction of investment in iron and steel fields in the post-sanctions
era. Simultaneously with the conference, an international exhibition was
held with an aim of presenting the latest software and hardware achievements
in the iron and steel sector to the audience.
Main speaker of
the opening session was Minister of Economic Affairs and Finance Dr. Ali
Tayyebnia. After the minister I delivered my speech as the Deputy Industry,
Mining and Trade Minister and Chairman of the IMIDRO Board in which the
situation of the mine and mining industry and investment opportunities in
the sector were reported a copy of which is available on the official
website of IMIDRO at
In addition to
welcoming the presence of foreign countries in Iran, we also visited a
number of countries with an aim of restoring our lost share in the world
markets. In the conference in Vienna, Austria, Iranís mine and mining
industry sector had a satisfactory presence which was welcomed and useful
sessions were held. Recently we also visited the Republic of Azerbaijan upon
an invitation extended by the Azeri officials.
During the trip
which was held in pursuant of the joint commissions discussed cooperation of
the two countries in the field of mines.
In this visit,
two meetings were held one with the Azeri Minister of Economy and Industry
Shahin Mustafayev who is also the Chairman of the Joint Commission and the
other with Kamaladdin Heydarov, Minister of Emergency Situations on the
expansion of economic cooperation in the field of mine and mining industry.
In the meetings
using technical and scientific capacities of Iran in the advancement of mine
and mining industry of the Republic of Azerbaijan, steel in particular, was
among topics discussed. It was decided that the Azeri minister of industry
pay a visit to Iran to further discuss expansion of cooperation.
proposals were made for the presence of investors from the Republic of
Azerbaijan in Iran for making investment in the field of exploration and
mine safety. A delegation from Baku is to visit Iran in this regard.
Bilateral cooperation in free zones such as Aras and Chabahar in the field
of steel was among other topics discussed in the meetings. An Azeri
delegation will visit Iran in a near future to hold more discussions in this
regard. Also, in the Republic of Azerbaijanís Chamber of Commerce, a meeting
was held with the officials of Baku Steel on bilateral cooperation in the
field of mining and steel. In a meeting with Azeri minister for emergency
situations, views were exchanged on the expansion of economic cooperation in
the field of mining. In this meeting, the Azeri minister referred to the
determination of the presidents of the two countries for the development of
relations and announced his readiness to pay a visit to Iran in a near
future. Heydarov pointed to the positive developments in Iran especially the
nuclear agreement and lifting of the sanctions and termed the economic
future of the two countries in the field of mining as highly promising.
As for the
Guinea bauxite which is one of the large mines of IMIDRO negotiations are
underway and we have a number of different scenarios for it. Soon we will
take measures for attracting foreign participation or investors. The Middle
East has been turned into an aluminum production hub and products of this
mine have proper market.
Transparent Regulations, Requirement of Investor Companies:
Organizations and officials that are responsible for the attraction of
foreign investors in the country should note that providing a package of
investment rules and regulations and the related tips, is among the most
important issues required by foreign companies.
So far, since
the past two years over 50 top companies of the world have requested
presence in Iran and investment in different mine and mining industry
sectors but there is no transparent picture available regarding internal
rules and regulations for the investment. Therefore, with regard to the high
potentials of the previous development plans and also strengthening of those
potentials in the Sixth Five-Year Development Plan of the Islamic Republic
of Iran, within the shortest possible time, presence of foreign capitals,
especially capitals of the Iranians residing abroad should be facilitated in
minister of industry, mining and trade has issued appropriate instructions
for the removal of bureaucratic rules and regulations on the way of domestic
and foreign investment. IMIDRO is taking serious steps in cooperation with
the industry ministry to improve the rules and regulations for the mine and
mining industry sector. In conclusion, once again I would like to invite all
the investors, owners of technology and multi-national companies to meet in
Tehran and play a role in our market.