Chamber of Commerce: 65% of Iran's Mines Have Closed for Various Reasons

An official from Iran's Chamber of Commerce has reported that 65% of the country's mines have closed due to "multiple problems" and stated that 12 economic organizations have requested the removal of obstacles for the private sector in a letter to Ali Khamenei. Bahram Shakouri, head of the Mining Commission of the Chamber of Commerce, said on Sunday, February 3, that they expect the government to work alongside the private sector to remove obstacles and play a role in "facilitation." According to this Chamber of Commerce official, the problems in the mining sector are "chains on the feet of economic actors," and he criticized the impact of "energy imbalance" on mining activities. Qadir Qiafa, vice president of the Chamber of Iran, also referred to the economic problems in the mining sector during this press conference, stating that currently, economic actors throughout the mining chain are facing financing issues and exports are struggling with multiple challenges. He identified the high government budget deficit as the root of the problems and mentioned power outages as another issue hindering the achievement of a 13% growth target. Given that Iran has abundant resources, policymakers have targeted a 13% growth for the mining sector in the seventh development plan. However, as officials state, one of the obstacles to achieving this 13% growth is the problem of energy imbalance. Iranian officials and media use the term "imbalance" to refer to the issue of energy shortages or deficits in Iran; a problem that has prevented mines from operating effectively and even caused difficulties in wage payments. Previously, Mehrdad Akbariyan, head of the Iranian Iron Ore Association, mentioned in an interview with the IRNA news agency that mines require diesel for machinery, transportation, and extraction, and that this need has intensified due to energy imbalance. He described the lack of fuel as a limiting factor that leads to reduced production and increased costs of mineral products. According to Mr. Akbariyan, under such conditions, miners cannot obtain diesel outside their quota because prices are "10 times" the government price, and if miners procure diesel outside their quota, they may face "smuggling charges." Meanwhile, miners in Iran have been dealing with various incidents in non-standard mines for years, sometimes losing their lives.