Iran in talks with European firms to retrofit mining machinery
Tehran, Iran, June 24
By A. Shirazi - Trend:
Mohammad Reza Bahraman, the head of Iran Mining House, said the non-government organization is in talks with European firms to purchase mining equipment and machinery.
IMIDRO (Iranian Mines and Mining Industries Development and Renovation Organization) has started negotiations with some European companies to rejuvenate the country’s dilapidated fleet of mining machinery, Bahraman said on June 24, ISNA news agency reported.
He added that Iran Mining House is directly continuing the talks with the foreign firms to buy its required machinery through credit guarantees.
The official said Iran's largest producer of mineral machinery, Heavy Equipment Production Company (HEPCO) is producing equipment and machinery under the license of reputable Japanese, Swiss and German firms.
The cooperation could be profitable for both sides, the Bahraman stressed, emphasizing that the country’s liquidity should go to production given the current economic situation of the country caused by the threat of new US sanctions.
On May 23, Volvo submitted the details of a type of 200-million-euro cooperation model to Iran whereby the Swedish construction equipment company vowed to supply heavy machinery and equipment to the Islamic Republic.
As the first phase of the cooperation framework, 200 million euro will be allocated by Volvo and this can be doubled with the help of IMIDRO.
US President Donald Trump announced on May 8 that Washington was walking away from the nuclear agreement, which was reached between Iran and the five permanent members of the UN Security Council - the US, Britain, France, Russia and China - plus Germany.
Trump also said he would reinstate US nuclear sanctions on Iran and impose "the highest level" of economic bans on the Islamic Republic.
Before Trump’s announcement, Iran’s mining sector had more than $10 billion of investment pledges by the Europeans and Chinese under its belt, but they are backtracking on their promises one by one over the new US sanctions.