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Dr.Tehrani calls for strategic reforms to revitalize the sector<\/p>\n
Iran’s mining sector faces significant challenges, as highlighted by Dr. Keyvan Jafari Tehrani in Sepher-e Eqtesad. Economic sanctions, restrictive export policies, and political instability have hindered growth, leaving Iran behind global competitors like Saudi Arabia and Australia.
\nDr. Keyvan Jafari Tehrani, a senior expert in international mining and mineral industries, has shed light on Iran\u2019s current standing in the global mining landscape in an insightful article published in Sepher-e Eqtesad, the quarterly journal of the Kerman Chamber of Commerce. The piece highlights Iran’s missed opportunities for growth in mineral production and exports, contrasting its trajectory with that of countries like Saudi Arabia and Australia.
\nThe Missed Opportunities
\nDr.\u00a0Tehrani underscores that over the past decades, Iran has failed to achieve significant growth in mineral production and exports. For a country to secure a place on the global mining map, it must capture a substantial share of targeted markets worldwide. However, he notes that Iran has lagged behind due to economic sanctions, lack of investor confidence, and flawed policies. As an example, Saudi Arabia has aggressively positioned itself as a global mining hub by hosting events such as the “Future Minerals Forum,” one of the largest mining conferences globally, which attracted 18,000 attendees in Riyadh earlier this year. In contrast, Iran’s restrictive export policies and political instability have deterred foreign investors, diminishing its competitiveness in the sector.
\nExport Policies and Their Consequences
\nDr.Tehrani critiques Iran’s heavy-handed export restrictions, particularly on raw iron ore. While restricting the export of unprocessed minerals may seem prudent to boost domestic industries, excessive export duties have discouraged exploration and investment in new mining projects. This policy misstep has led to a severe shortage of iron ore, threatening Iran\u2019s mining industry for the next decade. For instance, in 2013, Iran exported 21.5 million tons of iron ore, ranking sixth globally in iron ore exports to China. However, subsequent restrictive policies caused Iran\u2019s ranking to plummet, leaving it outside the top ten exporters today. Dr.Tehrani warns that when a country lacks a significant market share in target economies\u2014like China\u2014it becomes expendable, unable to exert strategic influence over supply chains.
\nThe Current State of Iran\u2019s Mining Sector
\nDespite ambitious plans outlined in Iran\u2019s Seventh Development Plan, which aims to increase the mining sector’s contribution to GDP by 13%, Dr. Tehrani argues that these goals are unrealistic given the liquidity crisis and capital flight from the country. Private companies, constrained by sanctions and FATF-related restrictions, struggle to repatriate funds or attract foreign buyers, further complicating efforts to expand the sector. Moreover, Iranian commodities are often sold below global prices due to sanctions and market uncertainties. For example, steel is frequently discounted by USD 30\u201340 per ton compared to international benchmarks. Buyers exploit Iran\u2019s weakened bargaining position, knowing that geopolitical risks could disrupt future deliveries. This unpredictability discourages long-term partnerships, marginalizing Iran in global markets.
\nThe Role of FATF Compliance
\nOne of the most striking insights from Dr. Tehrani\u2019s analysis is his emphasis on the importance of complying with the Financial Action Task Force (FATF) standards. He argues that resolving FATF issues is critical not only for lifting sanctions but also for restoring trust among international buyers. Without FATF compliance, money transfers remain cumbersome, deterring potential customers who view transactions with Iranian entities as high-risk. Additionally, ongoing export tariffs introduced during the previous administration continue to hinder trade under the current government. These levies have pushed some prospective buyers away, fearing non-competitive pricing or logistical hurdles. Such barriers exacerbate Iran\u2019s declining relevance in global mineral production.
\nA Call for Strategic Reorientation
\nDr. Tehrani concludes by urging policymakers to adopt a more pragmatic approach to revitalizing Iran\u2019s mining sector. He advocates for easing export restrictions, fostering foreign investment through transparent regulations, and prioritizing FATF compliance to reintegrate Iran into the global economy. Without these measures, Iran risks falling further behind competitors like Saudi Arabia and Australia, whose proactive strategies have solidified their positions as leaders in the mining industry. This interview serves as both a wake-up call and a roadmap for Iran to reclaim its rightful place on the global mining stage\u2014a vision that hinges on bold reforms and a renewed commitment to sustainable development.
\nWhat sets Dr. Tehrani\u2019s perspective apart is his focus on the interconnectedness of financial systems and industrial growth. By linking FATF compliance to mining exports, he highlights how regulatory frameworks shape economic outcomes. His argument underscores that solving Iran\u2019s mining challenges requires addressing broader structural issues, including banking reforms and diplomatic engagement\u2014a holistic approach rarely discussed in mainstream analyses.<\/p>\n