- Equipment and Machinery modernization: The average age of mining machinery in the country has reached over 20 years. This obsolescence reduces productivity and increases operational costs. Therefore, the refurbishment and modernization of equipment should be the top priority.
- Establishing a Mining Modernization Fund:Having a “Mining Modernization Fund” with the banks and financial institutions participation can facilitate the way for securing financial resources for purchasing new equipment and upgrading mining technologies.
- Technology Transfer from Leading Countries: Negotiating and collaborating with countries like Russia and China for the transfer of modern extraction and processing technologies is a necessary step for updating the country’s mining industry.
- Diversifying Financial Resources: Finance, attracting domestic and foreign investment, as well as reciprocal agreements with neighboring countries can be complementary tools for financing mining projects.
- Removing Restrictions and Economic Reforms: To achieve double-digit growth in the mining sector, it is necessary to remove international restrictions, attract foreign investment, and implement structural reforms in the country’s macroeconomic.
- Reforming the Method of calculating the Government Royalties: A good governance example in this sector is changing how government royalties are calculated. Previously, these calculations were based on the amount of extraction. However, from 2024, with the approval of the new regulations, the basis has been determined as a percentage of the sales value, which is considered fairer and more efficient.
- Supplying Explosive Materials for Extraction: To address the shortage of explosive materials, the Ministry of Industry, Mine and Trade should work closely with the Ministry of Defense and domestic manufacturers to ensure that a sufficient supply of these strategic materials is available to the mines.
- Fuel Supply Management: Diesel fuel shortages are a major obstacle to mining activities. Allocating a special quota and establishing regional fuel distribution bases in mining hubs can help ensure sustained and stable operations.
- Reviving Inactive Licenses: Transferring inactive licenses with special conditions will not only lead to direct and indirect job creation for approximately 200,000 people but will also increase the mining sector’s share in the gross national product (GNP) by about 2 percent.
- Focusing on Collaborative Governance: Combining domestic and foreign investment, along with cooperation between the government and the private sector, can create a platform for transparent, accountable, and development-oriented governance in the mining sector.
Mohammadreza Bahraman, Head of Iran Mining House