Iran mines revenues to hit 8 trillion rials by year-end

Business Materials 17 December 2013 11:54 (UTC +04:00)

Baku, Azerbaijan, Dec. 17

By Rahim Zamanov - Trend:

Iranian government will earn 8 trillion rials ($266.6 million based on the exchange rate of USD at the free market) through development of state-owned mines in the current calendar year (to end March 20, 2014), Deputy Industry, Mine, and Trade Minister Jafar Saragheyni said, the ISNA News Agency reported on Dec. 17.

"Due to some disputes over the interpretation of the law, the government has failed to receive its share of the mines' revenues so far this year," he said, adding that the government hopes to receive the money by the end of current year.

Abolfazl Poudehi, an official with the Iranian economy ministry, said on Dec. 10 that the mining sector of Iran requires $400 billion to meet objectives of the Fifth Five-Year National Development Plan (2010-2015).

"The private sector, banks, and the capital market will secure some 60 percent of the necessary fund, and 40 percent will be provided through foreign sources," Abolfazl Poudehi stated.

Former Minister of Industry, Mine, and Trade Mehdi Ghazanfari said in July that some $807 million (based on official rate of 24,782 rials per each dollar) from the National Development Fund of Iran were allocated for the development of mines, ISNA news agency reported in July 17.

Ghazanfari said in the current year's national budget about $20.18 million is allocated for exploration projects.

Iran is among the 15 major mineral-rich countries of the world and exports its industrial and mineral products to 159 countries, including Iraq, China, the United Arab Emirates, India, and Afghanistan.