Foreign company to invest $600M in Iran’s mining project
Baku, Azerbaijan, Nov.17
By Fatih Karimov - Trend:
A foreign company will invest up to $600 million in a mining project in Iran.
Head of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mehdi Karbasian said the development of Sangan iron ore mine, located in northeastern province of Khorasan Razavi, needs $1 billion, and a foreign company has agreed to provide 60 percent of the funding, Iran's ISNA news agency reported on November 17.
He did not provide any information about the mentioned foreign company.
The plan is aimed at producing five million metric tons of iron ore concentrate and five million metric tons of pellets per year at Sangan mine.
Sangan mine holds an estimated iron ore reserve of 1.2 billion metric tons. The project will come on stream by 2017.
In December 2013, Abolfazl Poudehi, an Iranian economy ministry official said 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," Poudehi stated.
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.