Prerequisites of Attracting Foreign Investment to Iran’s Mining Industry

Foreign Investment

An Iranian official says besides international conferences, Iran’s mining sector needs to work on its imperfect infrastructure and data systems to attract international investors.

While there is no detailed information about Iran’s mining sector, authorities endeavour to introduce mining opportunities to foreign investors during conferences and meetings.

“Despite the small number of international meetings held in Iran, they have proved to be effective in attracting foreign investment,” said Kourosh Shabani, a manager in Iranian Mining Engineering Organization.

“Of course we should show the realities of mining as they are so that foreign investors know how are the conditions of this industry.”

“Many groups of investors have travelled to Iran, but just to examine the circumstances. No one has invested in mining industry. Banks didn’t provide facilities as they should. No goal will be realized by the mere participation of foreigners in conferences.”

“It is better to distinguish between domestic and foreign investors,” he noted, referring to international investors who tend to analyse all circumstances before taking action.

“By adopting a different approach to foreign investors, we can encourage them to take part in Iranian mining sector,” he added, according to a Farsi report by SMT newspaper

“We should build necessary infrastructure, improve business conditions and stabilize our rules to make foreign investors sure that they can transfer their money into Iran to take part in mining industry. Any investor – domestic or foreign – wants to be certain of his investment profitability.”

While Iranian mining industry has a huge capacity for international investment, imperfect infrastructure may put off measures, he added.

“Government and related organizations should develop the required infrastructures such as transportation, water and gas,” he noted.

“We can also cooperate with foreign investors in infrastructure planning and building.”

Shabani also emphasized the importance of accurate information about mining sector.

“While Iranian Engineering Organization is very well-informed about active mines and level of sources, we still haven’t collected any detailed, reliable data.”

“We lack a comprehensive data bank in mining sector to be used by international investors. If a particular organization is responsible to develop such a system, the information will lag the factual data just for a few months.”

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