Bahram Shakouri, head of the Mining Commission of Iran’s regime Chamber of Commerce, announced that 65% of the country’s mines have been shut down due to “numerous problems.” He also stated that 12 economic organizations have sent a letter to Ali Khamenei, the regime’s Supreme Leader, requesting the removal of obstacles for the private sector.
On Sunday, February 2, during a press conference, Shakouri stated that they expect the government to work alongside the private sector to remove obstacles and play a “facilitating” role.
According to him, the challenges in the mining sector are “chains around the feet of economic actors,” and he went on to criticize the impact of “energy imbalances” on mining activities.
Qadeer Qiyafe, vice president of Iran’s Chamber of Commerce, also addressed the economic difficulties in the mining sector during the press conference. He noted that economic actors throughout the entire mining supply chain are currently struggling with financial constraints, and exports are facing multiple challenges.
He identified the root of these problems as the government’s high budget deficit and cited power outages as another issue preventing the achievement of the projected 13% growth.
Officials and media of the Iranian regime use the term “imbalance” to refer to the issue of energy shortages or deficits in Iran—a problem that has, among other things, prevented mines from operating properly and has even led to difficulties in paying wages.
Previously, Mehrdad Akbariyan, head of Iran’s Iron Ore Association, stated in an interview with the state-run IRNA news agency that mines require diesel for machinery, transportation equipment, and extraction operations. However, due to the energy imbalance, this need has intensified.
He described the lack of fuel as a limiting factor that leads to reduced production and higher final costs for mining products.
According to Akbariyan, under these conditions, miners cannot even purchase diesel outside of their allotted quota because the prices are “10 times” higher than the government rate. Additionally, if miners buy diesel outside their quota, they may face “smuggling charges.”
Meanwhile, miners in Iran have been grappling with various accidents in substandard mines for years, sometimes losing their lives in the process.
