Dr. Keyvan Jafari Tehrani, a senior expert in international mining and mineral industries, has shed light on Iran’s 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.
The Missed Opportunities
Dr.Tehrani 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.
Export Policies and Their Consequences
Dr.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’s 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’s 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—like China—it becomes expendable, unable to exert strategic influence over supply chains.
The Current State of Iran’s Mining Sector
Despite ambitious plans outlined in Iran’s 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 30–40 per ton compared to international benchmarks. Buyers exploit Iran’s weakened bargaining position, knowing that geopolitical risks could disrupt future deliveries. This unpredictability discourages long-term partnerships, marginalizing Iran in global markets.
The Role of FATF Compliance
One of the most striking insights from Dr.Tehrani’s 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’s declining relevance in global mineral production.
A Call for Strategic Reorientation
Dr.Tehrani concludes by urging policymakers to adopt a more pragmatic approach to revitalizing Iran’s 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—a vision that hinges on bold reforms and a renewed commitment to sustainable development.
What sets Dr.Tehrani’s 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’s mining challenges requires addressing broader structural issues, including banking reforms and diplomatic engagement—a holistic approach rarely discussed in mainstream analyses.
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