Iran's mineral, industrial products up, despite lower export

By Dalga Khatinoglu, Temkin Jafarov

The latest statistics released by Trade Promotion Organization of Iran (TPOI) indicates a huge increase in Iran's non-oil exports, while the figures for mineral and industrial commodities decreased during last fiscal year, ended March 20.

That's while the country's industrial and mineral production increased significantly during last year, the year that Iran got rid of two-year longed stagflation.

The head of Parliament's Mining and Industry Commission Reza Rahmani told Trend April 30 that it expects rapid growth in both output and export of mineral-industrial products in coming years.

According to the International Monetary Fund's estimations, Iran's economy contracted by 6.6 percent and 1.9 percent in 2012 and 2013 respectively, but the GDP growth reached 3 percent during last year.

However, according to TPOI's statistics, the country's mineral and industrial products exports decreased by 24 percent and 0.4 percent during last year.

Rahmani says Iran has some 68 kinds of mineral reserves in huge amounts.

According to official statistics, there are 38 billion metric tons of proven mineral reserves, alongside 52 billion metric tons of potential mineral reserves in Iran, of which 5,200 mines are active. However, the share of mining in Iran's GDP is only about 3 percent.

Rahmani said that during last year, some 500 million metric tons of minerals were extracted, but this figure can soar after putting the needed investment and commencing new projects in coming years.

According to official stats, Iran's mineral products increased by 7.4 percent last year.

Iranian MP believes with elimination of sanctions and entrance of foreign companies in Iran’s mineral sector, the production level can increase more and more, allowing Iran to replace the crude oil export with mineral revenues.

The crude oil export shares about 15 percent to 16 percent of Iran's GDP.

According to Rahimi, Iran's auto production increased by 60 percent and the petrochemical sector experienced good progress during last year.

Iran was producing about 1.64 million various cars in pre-sanctions year (2011), but the figure plunged to 625,000 autos in 2013. However, after an interim nuclear deal, achieved in November 2013 and halting the sanctions on Iran's auto sector, the country's car production level re-increased to 1.15 million in 2014.

Iran also increased the petrochemical production level by 10 percent to 44 million tons during last year, but it is still less than the potential production capacity, which is about 60 million metric tons per year.

Rahmani said that Iran's home appliances production increased by 35 percent, while apparel products output up 17 percent during last year.

Iranian MP says that the country's petrochemical sector needs huge amount of foreign investment as well.

Ahmad Mahdavi Abhari, secretary of the Association of Petrochemical Industry Corporations (AIPC) announced April 19 that the value of half-finished projects in Iran's petrochemical sector amounts to USD 70 billion, proving that the sector has a good potential to attract foreign investment.

/By Trend/