TEHRAN, Iran, Jan.30
Iranian Mines & Mining Industries Development & Renovation (IMIDRO) is seeking to increase its capital to secure more insurance coverage in mine sector, said Deputy Minister of Industry, Mine and Trade.
"The increase of investment in the Mining Investment Insurance Corporation will create more development of mines in private sector," said Jafar Serghini, Trend reports citing IRNA.
The Mining Investment Insurance Corporation was established in line with the country's macroeconomic strategies and according to the article 31 of Mines act 1998 with the mission of strengthening and protecting investment in the mining sector.
"Increase of capital of the Corporation up to $238 million is justifiable due to the rise of demand for raw material in mineral industries, boosting transportation of mineral material and production," Serghini said. "The responsibility of the fund is to support these areas including revival of small mines".
In his words, although the investment is not sufficient, initially, $83 million will be invested in the Mining Investment Insurance Corporation in current Iranian year (started March 21, 2019) and $119 million will be assigned in next Iranian year (starts March 21, 2020).
"There are 4,000 inactive mines in the country that needs financial support, and IMIDRO uses two approaches related to the activities of the Mining Investment Insurance Corporation to address the issue," the deputy minister added.