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Chinese Contractor Prevents Workers from Operating at 'Mazraeh Shadi' Gold Mine

Feb 2, 2026 February 2, 2026 2 min read 📰 VOA Persian
📋 Key Takeaway

Workers at the Mazraeh Shadi gold mine in Varzeqan are facing potential unemployment due to a Chinese contractor's prohibition on their entry to the workplace. This situation arose after the workers sought to assert their legal rights, raising concerns about their livelihoods and the role of Chinese investment in Iran's economy. The incident underscores ongoing tensions regarding foreign investment and local worker rights.

🔍 Quick Context Guide
💡 Bottom Line: The barring of local workers from the Mazraeh Shadi gold mine underscores the tensions between foreign investment and local labor rights in Iran.

👥 Key Players

Chinese Contractor MENTIONED
Employer at Mazraeh Shadi gold mine
"Their actions reflect the influence of foreign investment in Iran's resource sector and the treatment of local workers."
Iranian Workers MENTIONED
Local employees at the mine
"They represent the local labor force affected by foreign investment practices and labor rights issues."
ILNA News Agency MENTIONED
Iranian media outlet
"They provide coverage on labor issues and represent the voice of workers in Iran."
Iranian Government MENTIONED
Regulator of foreign investments and labor rights
"Their policies and agreements with foreign entities shape the economic landscape and labor conditions in Iran."

📰 What Happened

Workers at the Mazraeh Shadi gold mine have been barred from entering the site by a Chinese contractor, leading to fears of unemployment. This situation arose after the workers attempted to assert their legal rights regarding their employment conditions.

  • 60 local workers with 8 to 10 years of experience have been prevented from entering the mine.
  • The mine has been operated by a Chinese investment company since 2016 under a 25-year contract.

💡 Why It Matters

🇮🇷 For Iran: This incident highlights the challenges faced by local workers in asserting their rights against foreign contractors, raising concerns about labor exploitation.
🌍 Regional: It reflects broader issues of foreign investment in the region, particularly China's growing economic influence in Iran.
🌐 International: The situation may draw attention from international labor rights organizations and could affect Iran's relations with foreign investors.

📚 Background

Iran has increasingly relied on foreign investment, particularly from China, to develop its natural resources, often at the expense of local labor rights. The Mazraeh Shadi gold mine is a key example of this dynamic.

Foreign investment in Iran Labor rights in Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
ILNA is affiliated with the Iranian government, so its reports may reflect official perspectives and priorities.

Iranian media reported the potential unemployment of workers at the 'Mazraeh Shadi' gold mine in Varzeqan due to a Chinese employer's prohibition on their entry to the workplace. The ILNA news agency, affiliated with the government organization 'House of Workers,' addressed this issue in a report stating: 'Since the beginning of this week, the employer and the Chinese contractor have temporarily halted operations at the Mazraeh Shadi gold mine, preventing workers employed at this unit from entering.' Reports indicate that this action by the Chinese contractor has raised concerns among contract workers, with the possibility of layoffs looming. In this context, ILNA noted that this incident occurred after workers pursued their legal demands, with 60 workers, who have between 8 to 10 years of experience, being barred from their workplace. ILNA reported that all workers are locals from surrounding villages and have not only been deprived of the benefits of this mine but also their livelihoods, which relied on agriculture, animal husbandry, and beekeeping, have been affected by the mine. The news agency emphasized that the Mazraeh Shadi gold mine in Varzeqan has been extracted by a Chinese investment company for years, yet the amount of gold extracted by this company remains unspecified. The village of 'Mazraeh Shadi' is located 125 kilometers from Tabriz city, in the Varzeqan district, and has 110 households with a population of 500. The Mazraeh Shadi gold mine, with a reserve of 2 million and 175 thousand tons of gold ore, is one of 12 mines in Varzeqan county, identified and introduced by geological engineers in 2000. This mine was transferred to the Chinese in 2016, and the Varzeqan governor stated in March 2017 that 'the Mazraeh Shadi gold mine in Varzeqan will be constructed with the participation of investors from China and Iran.' The behavior of the Chinese at this mine has heightened concerns regarding their presence under a 25-year contract with the Islamic Republic in Iran, as the unclear dimensions of the contract and the transfer of many areas and projects to the Chinese could effectively make them a key player in Iran's economy.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 90%

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