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.
The mining 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
Basically 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.
However, today 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 past.
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.
In continuation 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
The 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.
Statistics 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.
Also companies 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.
Some 140 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 world.
In this 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
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
Meanwhile, 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 Iran.
The honorable 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.