Free Web Hosting Provider - Web Hosting - E-commerce - High Speed Internet - Free Web Page
Search the Web

The performance of the Ministry of Mines and Metals in the field of exploitation and production of minerals and metals hit the target forecast in the First Development Plan. The amount of exploited minerals with an average annual growth rate of 9.8% rose from 4.7 million tons in 1988 to 71.4 million tons in 1993. Production of iron ore, with an average annual growth rate of 36.1% hit the target growth rate of 24.2% forecast in the plan. Also, in the metals sector, Iran which was an importer of steel at the outset of the plan, began to export the product at the end of the plan (in the year 1993).

Access to exploitation, discovery and production technologies in the mines and metals sector is one of the indexes for progress in every country. The reason is that the mines sector is one of the most job generating ones in each society providing the highest rate of employment. At present, 112,000 people are directly active in the mines and production of metals sector in Iran and the products of this sector are linked with hundreds of various fields including major and minor industries, particularly in the construction, metals and military areas.

According to the statistics published by the macro economic bureau of the Plan and Budget Organization, in the economic report of the year 1372 (March 21, 1993 - March 20, 1994), the value added of the ministry's products was 13.5% which is the highest figure among the industrial ministries and even petrochemical companies. This means that the dependency of the industries under the cover of this ministry on foreign countries is little and reliance on domestic sources such as melting of metals which had the highest growth rate helped the ministry enjoy the highest value added. Also the amount of exports of the mines and metals sector exceeded dlrs. 461 million in the year 1372 (1993).

Moreover, the Ministry of Mines and Metals gained the first and second ranks in production growth rate in the world in the Iranian years 1371 (1992 - 1993) and 1373 (1994 - 1995) through increasing the production of steel in the country.

Iran is rich in mineral reserves. With the average population density of 40 persons in each sq. km, Iran has been given a special place among other countries. The structure of the mountain ranges and Iran's planes also give it a special status compared with other parts of the world from the viewpoint of evolution of the solid crust of the earth.

Iran, not only can meet the needs of its population for minerals, metals and other substances which are used in various agricultural, chemical, construction and mother industries, as well as for fuel, especially oil and gas but also has huge potentials for export of mineral substances. It is noteworthy that in most world countries, either oil reserves do not exist sufficiently or other underground reserves needed for the progress of the industry are not enough. Therefore, one of the privileges of Iran is possession of both categories of raw mineral materials. Iran's mineral reserves have been utilized by the people who have lived in this area since time immemorial.

The decorative and warfare metal tools and coins discovered at ancient civilization centers of Iran including Lorestan, Khuzestan, Kerman, Sistan, Azarbaijan, Kashan on the one hand, and numerous ancient mineral digging works and metal melting furnaces on the other indicate that mine work goes back to more than 7,000 years in this land. The Iranian people have been familiar with mines and mine works since long time ago and some historians have written that the Iranian people have been from among the first persons who knew copper and managed to exploit copper ore and use it for making dishes and other tools after melting it.

A Review of the Activities of the Ministry of Mines and Metals During the First Development Plan (1989-1993) .

The growth rate of the value added of the metals sector (intermediate industries) which had been forecast at 24.3% annually, reached 32.4%

The monetary value of the ministry's products based on international prices in the First Five-Year Development Plan amounted to about dlrs. 11 billion and the figure is expected to reach over dlrs. 20 billion in the Second Development Plan (1995 - 1999).

In the mines sector, iron ore output, which rose to 8.65 million tons in 1993 from 1.85 million tons in 1988, showed an annual average growth rate of 36.1%. The target predicted for the growth of iron ore production was 24.2%.

The iron ore production capacity rose following the inauguration of `Gol-Gohar' iron ore complex with an annual production capacity of 2.75 million tons of iron ore concentrates and the expansion of the existing units.

Also, with the completion and going on the stream of the `Chenareh' and `Hoz-e Mahi' limestone mines, the needs of the country's steel mills for industrial limestone were met domestically.

The ministry's annual concentrated copper output topped 416,000 tons from 165,000 tons in the First Five-Year Plan, fulfilling the predicted rise of 20.2% on the average.

Moreover, coal production reached 970,000 tons from 885,000 tons over this period and the number of active mines in Iran climbed to 2,328 in 1993 from 1,400 in 1989.

For better exploitation of mines to supply the raw materials needed by productive factories and exporting minerals, the trend of mineral exploitation was upward during the first five-year development plan.

Some 71.4 million tons of minerals were extracted in 1993, registering a 9.8 percent increase annually. The figure was 44.7 million tons in 1988. (See Mines Table Below)

Iran imported about four million tons of steel annually up to the early years of the First Five-Year Development Plan, but the country turned into an exporter of minerals in 1993 when its annual minerals output jumped to four million tons from 1.34 million tons in 1988.

As for steel products, the country's output showed an average growth rate of 24.2% annually which exceeded the rate predicted in the plan (22%).

In the meantime, the Mobarakeh Steel Complex has been put into operation with a production capacity of 2.4 million tons of industrial steel sheets per year.

Ahvaz Steel Complex, a project left semi-finished during the Iraqi imposed war (1980-1988), was completed and put into operation in the first development plan to run with an annual production capacity of 1.55 million tons of billet and steel slabs.

Moreover, projects for reconstruction and extension of the units affiliated to the national Iranian steel industrial group and for enhancement of the Isfahan Still Mill, and Kavian hot roll plant were fully implemented within the said period.

With regards to production of non-ferrous metals, the targets forecast in the plan were achieved. Anode copper output has an average growth rate of 22% annually which was more than the target predicted in the First Development Plan. Its output rose to 128,000 tons in 1992 and about 102,000 tons in 1993 from 58,000 tons in 1988. (The reason for the drop in output of the year 1993 in comparison with the years 1991 and 1992 was the major repair operations carried out on the anode furnace number one).

Aluminium output registered an increase of 26.3 percent annually and reached 90,000 tons in 1993 from 30,000 tons in 1988. The First Development Plan had forecast a target production of 65,300 tons of aluminium in 1993. Also aluminium moulding amounted to 103,000 tons in 1993.

For the first time in the country, a plant for production of lead and gold ingot as well as cathode zinc sheet became operational in the course of the First Development Plan. At present, the lead output of these units are being exported to world markets.

The annual output of gold ingot, lead ingots and cathode zinc sheets amounted to 548 kg, 15,000 tons and 206 tons respectively in 1993.

The ministry managed to raise the annual production of fire resistant bricks and materials to 120,000 tons in 1993 from 90,000 tons in 1988. This showed a six percent increase per year.

It is to be noted that a major part of the fire-proof products needed by productive units were previously imported. (See Metals Table Below)

This sector became very active and dynamic by implementing infrastructural plans and investment aimed to revive the mines sector. Broad measures were taken to equip and exploit decorative stone mines and principled methods such as using processing machinery instead of wrong and irresponsible explosion procedures were applied.

Iranian stone processing plants are now capable of producing about 1.5 million square meters of decorative stones per year. The volume will reach about 1.7 million sq. meters by taking into account the 200,000 square meters produced by small factories in various parts of the country at present.

However, the volume could be doubled to reach nearly 3.5 million square meters in the next three or four years.

Germany, Japan and the Persian Gulf littoral states account for 35% of the world's total import of stones (3.5 million tons of stones and about 1.2 million tons of processed stones).

The country's present stone output stands at five million tons of which 35,000 tons are exported annually.

If Iran managed to meet 10 percent of the stone requirements of the aforementioned countries, then its stone exports would increase 10 folds to reach 350,000 tons a year.

In that case, the country would earn between dlrs. 70 million and 150 million annually from export of stones. The prices of stones and processed stones on international markets are currently. $150 and $500 per ton respectively.