Russia’s UMMC eager to cooperate with Iran in mining industry
Tehran, Iran, May 27
By Kamyar Eghbalnejad - Trend:
A Russian metallurgical company based in Verkhnyaya Pyshma, the second largest copper producer in Russia, has expressed willingness to cooperate with Iran in the country's mining sector.
“We can cooperate with Iran in various fields by having access to Iran’s projects,” Sergo Kurbanov, an official with UMMC (Ural Mining and Metallurgical Company) said during a meeting with Iranian Deputy Minister of Industry, Mining and Trade Mehdi Karbasian in Tehran on May 27.
Karbasian, for his part, said given the wide range of tasks this holding is capable of doing, the two sides can enhance their cooperation in the field mining and mine industries, the press office of the Iran’s industry ministry reported.
“At present, there are plans underway to increase the country’s reserves of copper, gold, and other rare metals,” he said.
The two sides can also expand their cooperation in the sector of drilling and exploration, Karbasian said.
The Iranian mining sector was surrounded by much fanfare following the lifting of nuclear sanctions on the Islamic Republic in 2016.
Government officials and economists, expecting an influx of foreign investment, deemed mining revenues as a reliable way out of an oil-dependent economy.
Fast forward to date, the sector has staged an underwhelming performance and accounts for only 5-7% of the Iran’s GDP. This is while mineral trade volume and value have been continuously on the rise for the past two years, accounting for close to 30% of Iran’s total non-oil trade.
Mining companies account for 15-20% of the total 4.1-quadrillion-rial ($102.54 billion) value of Iran’s stock market, according to reports.
Their market cap is poised to increase further, following the past few months of global price growth. In fact, mining firms, and especially base metal producers were the primary drivers of Tehran Stock Exchange’s growth in the second quarter of the year. The sector is also highly attractive in terms of reserves.
Iran is home to 68 types of minerals with more than 37 billion tons of proven reserves and 57 billion tons of potential reserves.
According to the US Geological Survey, Iran holds the world's largest zinc, ninth largest copper, 10th largest iron ore, fifth largest gypsum and barite and 10th largest uranium reserves. Overall, Iran is home to more than 7% of global mineral reserves.