Industry & Mining
Overview
Steel, weaving, food processing, car, electrical and Electronics Industries are among the key industries in the country.Iran now produces a wide range of manufactured commodities, such as telecommunications equipment, industrial machinery, paper, rubber products, steel, food products, wood and leather products, textiles, and pharmaceuticals. Iran is also known throughout the world for its hand-woven carpets. The traditional craft of making these Persian rugs contributes substantially to rural incomes and is one of Irans’ most important export industries
The pharmaceuticals, paper, sugar, packaging, and textile segments have been identified as key growth areas of the industrial sector by the Industrial Development & Renovation Organization of Iran. Industrial output continued to grow into 2012, buoyed by the strong mining and steel sectors. Advances in aerospace and agri-business are also firming up the manufacturing sector.
Automotive • Iran produced 1.4 million cars from 2Q2011 to 1Q2012. Total sales, including imported and domestically produced vehicles, totaled $18.8 billion. • A booming auto industry requires a booming auto parts industry. Iran has just that. Now supplying much of the industry’s needs, producers are ramping up exports.
Mining Iran is rich not only in oil and gas, but in mineral deposits’, as well. Iran has the world’s largest zinc reserves and second-largest reserves of copper. It also has important reserves of iron. Uranium, lead, chromate ,manganese, coal and gold .In addition to the major coal mines found in khorasan razavi,kerman,semnan,mazandaran,and gilan, a number of smaller mines are located north of Tehran and in Azarbayjan and Esfahan provinces. Deposits of lead, zinc and other minerals are widely scattered throughout the country. The mines at sar cheshmeh in Kerman province contain the world’s second largest lode of copper ore. The government owns %90 of all mines and related large industries in Iran and would like To attract foreign investment for the development of the mining sector. As per Article 44 of Constitution of Iran, the government has been actively promoting the privatization of all mines.
Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) is the major state-owned holding company. Although 90% of the country’s mines and related large industries are in state hands; the government has stated its intention to further develop the sector through private and foreign investment. Minerals targeted for investment include aluminum, copper, and iron ore. By the end of the current Five-Year Development Plan (FYDP), which began in 2010, the government expects to boost the mining sector’s contribution to GDP to 1.2% as well as boost total mineral production to 500 million tons. With 12% of the Persian Gulf region’s aluminum reserves, the implementation of development projects could boost production to 1.5 million tons by 2025 and turn Iran into one of the top 10 producers in the world. The private sector is also being mobilized to get the mining sector to work with modern equipment.
• There are approximately 5,000 mines in operation in Iran, with 12 metals and 36 non-metal ores currently being exploited. • Increased investment and private sector involvement will see mineral production increase in the coming years as modern machinery and equipment are put to use. • Iran is one of the top 10 global producers of iron ore, with over 35 million tons of output per year. • Iran’s precious stones have become an object of admiration for onlookers as well as a profitable industry for the country as it aims to diversify its economic strengths. • As one of the 15 most mineral-rich countries in the world, Iran enjoys export links with 159 countries, including Iraq, China, the UAE, India, and Afghanistan. Mining products represent over 30% of the country’s non-oil exports, and the sector also employs 100,000 people directly and up to half a million indirectly. • Developments in the country’s base metals segment, including copper, aluminum, zinc, and lead, also continued over the last 12 months. Iran has the world’s biggest zinc reserves, second largest copper reserves, and ninth largest iron reserves. • Iran is also rich in zinc and lead, with over 220 million tons of proven reserves. Production remains below 200,000 tons for zinc and lead, with just under half exported.
Investment Facilities %80 of the income from producing and mining activities ,which is derived and declared by producing and mining enterprises of cooperatives of private sectors of whom exploitation licenses are issued , or with whom extraction and sale contracts are concluded, from the beginning of the year 2002,on words by relevant ministries ,shall be exempt from the tax set forth in the article 105 here of for a term of 4 years beginning from the date of exploitation or extraction the less developed regions ,the exemption shall apply to %100 of the income for a term of years.
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