The Forum for Partners in Iran's Marketplace

January 2018, No. 86


BIM, a Pioneer in Supporting Mining Industry

Minister of Industry, Mine and Trade, Mohammad Shariatmadari, said: “One of the most important plans of the 12th government is to pay attention to the mining sector, and we will try our best to increase the share of this sector in the national economy and enhance the value added of mineral resources.”

Speaking at a ceremony of signing a memorandum of understanding on the financing of mineral projects between the Mineral Investment Insurance Fund and the Bank of Industry and Mine (BIM), he said: “Both the fund and the BIM play a leading role in supporting the mining sector and mineral industries.”

The meeting was also attended by the IMIDRO (Iranian Mines and Mining Industries Development and Renovation Organization) chairman, the BIM CEO and director of the Mine House.

He noted that with a 10-fold increase in the fund’s capital, more support could be provided and that the MoU was signed to extend facilities to the mining sector.

Shariatmadari added: “4,000 billion rials been put at the disposal of the mining activities and purchase of machinery which is in addition to bank guarantees and facilities.”

He said: “Of the 6,000 thousand billion rials the banking system provides to the economy and industrial and mineral activists, 4,000 billion rials should go to the industry and mine sector, of which 32% has been absorbed.

He reiterated that with the permission of the leadership, $1.5 billion from the National Development Fund has been allocated to implement projects in deprived and rural areas. The mining sector has a special place due to its role in creation and development of production and employment.

“With this trend this year and in the years to come, we will witness the prosperity of mining and mineral industries. We expect the safety of mines to be taken into account, especially coal mines which do not enjoy appropriate safety. The safety of mines will attract more young people to the mining sector,” he said. 

Limit on Mining Sector Loans Lifted: CEO of the Bank of Industry and Mine also announced a one percent drop in loans extended to the mining sector and said the curb on allocation of loans to the mining sector has been lifted.

Ali Ashraf Afkhami added: “Over the past four years, the abandoned projects have received new funding and seven steel projects have been financed. Meanwhile, five other pellet projects have been funded with a total credit of $3 billion, which will increase the country’s steel production capacity by seven million tons.”

The BIM chief noted: “In the meantime, the small mineral industries too should be paid attention to. We intend to allocate 4,000 billion rials in facilities and we have considered no limits. In the economic support sectors, including mineral industries we have done important works in the railway sector and have spent a total of $2 billion on the infrastructure.”

He said: “For the mineral sphere, we have voluntarily reduced the interest rate by one percent to 17 percent.” He said the aim and mission of the BIM is to support the national economy, adding that in the past four years the BIM has fulfilled 47% of the financing of power plants at about $2 billion.

“We have also contributed to the lead and zinc sector and in the small and medium industries we are one of the main suppliers.” 

Mineral Investment Insurance Fund Supports Exploration to Production: IMIDRO chief Mehdi Karbasian said at the ceremony that the fund has been launched with an aim to support activists in the mining sector from exploration up to the last stage. He added that the fund was due to be transferred (to the private sector) but this did not happen and instead its capital was increased from 100 billion to 1,100 billion rials and has granted 4,000 billion rials in the form of loan and guarantees to the miners.

He said that the fund supports small and medium-sized miners, and activists can receive loans from banks by accepting development license as a guarantee. Meanwhile, about 3,000 billion rials in loans and guarantee have been issued under the 11th government.


Subscribe to

  January 2018
No. 86