Baku, Azerbaijan, Oct. 17
By Elnur Baghishov - Trend:
In recent months, investments of Iranian companies in the mining sector of the country have increased as a result of the US dollar’s surging and the increase in price of mining products, said Amir Sabbagh, economic and investment development manager at the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), ISNA reported.
The rise in the US dollar is both a threat and an opportunity for foreign investors, he said.
He noted that the rise in the US dollar caused many industries to incur losses.
However, companies in oil, petrochemical and mining sectors, which export goods and sell them for the US dollars, observed an increase in revenues, he said.
Increase in revenues resulted in increased investments in the mining sector, he noted.
So, the companies are increasing small and medium-sized investments and exploration activity, he added.
These investments are mainly made at the expense of companies’ own revenues, he said.
Presently, instead of international investors, domestic producers are investing in the mining sector of Iran, he added.
“Foreign investments have always been limited in the mining sector,” he said. “Presently, it is even more difficult to raise foreign investments. So far, there have been no major investors in the mining sector. Only five small investors were involved in activities related to steel and ferroalloys.”
Sabbagh said that investments in Iran are profitable for foreigners because of devaluation, workforce, energy, and cheap transport in the country.
“Presently, many investors from different countries are interested in Iran, because they have a short-term strategy,” he noted. “However, the situation of companies is different. Companies have a long-term strategy and investments are not for their benefit.”