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Renovation of Iran coal mines secures 7 million tons coal production

Business Materials 5 July 2019 18:23 (UTC +04:00)

Tehran, Iran, July 5

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Iran's coal sector has created 17,000 jobs, statistical data show, and the mines have good production capacity of seven million tons of coal, if the renovation and development plans implemented.

Iran's annual coal concentrate production have reached 1.5 million tons, while the current need is estimated at the volume of two million tons, Trend reports citing IRNA.

The recent statistics released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) indicate that the country's current coal reserve is 1.2 billion tons of coal coke and 1.5 billion tons of thermal coal.

Tabas Coal Mines and Central Alborz Coal Company coal have explored 1.7 million tons of coal during last Iranian year (started March 21, 2018), while 131,422 tons of coal were extracted in first month of current Iranian year (started March 21, 2019).

The smelting sector and steel companies annually need 1.7 million tons of coal , and operations of Zarand Steel Company in Kerman require 3.5 million tons of coal concentrate.

The casualties in Iran's mines have increased from 876 cases in 2009 to 1,177 cases in 2012, whereas major part of accidents is not reported by employers.

The statistics of Ministry of Cooperatives, Labour, and Social Welfare show the casualties in 2016 have resulted in to 814 deaths. In total, 43 miners died in Zemestan-Yurt coal mine explosion at Golestan Province In May 2017.

Statistics of the Ministry of Industry, Mine and Trade show 17,000 job places have been created in coal industry, and investors expect that the production capacities will increase from three million tons to seven million tons.

The ministry had announced supportive policies to raise salaries in order to help the sector. Many mine experts are currently stress the importance of privatizations in the sector, and the government plans to implement a cohesive coal plan to increase the competition in the sector. It implies, in particular, improving the safety of mines and renovating them alongside implementing incentives such as tax exemption for importing equipment.

The statistics in coal sector show the exploration reserves is 1.2 billion to 2 billion tons. However, it is expected that exploring annually 1 percent of the volume amounting to 10 million tons will meet the demand.

Some experts in coal industry believe that the current situation is an opportunity for the coal export, while thermal coal is a cheap source of energy and the sector can create more jobs.

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