Iran Economy in Brief – No.67

Yurt Mine Tragedy

Last week an explosion in the Yurt coal mine in the province of Golestan left 42 people dead. The Deputy Minister of Industries and Mining announced the cause of the accident as using an external battery starter instead of a compressed air starter for starting a locomotive in the tunnels.

Mohammadreza Bahraman, Head of Iran Mining House said that the safety equipment in the coal mines such as alarm devices for dangerous gases, anti-spark systems, air conditioning and equipment for holding the walls and ceiling in place are highly inadequate.

“Based on statistics from the Ministry of Mining, there are currently 10,000 people working in coal mines across the country which must produce 2.5 million tons of coal concentrate that is needed by Isfahan Steel Company. Based on the increased capacity of Isfahan Steel Company and other steel companies adopting the blast furnace method, it is expected that the need for coal will also increase” explained Mr Bahraman.

Hopefully so do the safety equipment.


Mostazafan Foundation takes part in  civil projects

Following the visit of the Head of the Mostazafan Foundation, Mohammad Saidikia, to Iraq on invitation from the Iraqi Minister of Housing, Building and Urban Services, Dr. Ann Nafi Aussei, Mostazafan agrees to delegate construction projects in Karbala and Najaf to its companies. “The Iraqi Ministry of Housing, Building and Urban Services is to provide the land and appropriate licenses in Karbala and Najaf as well as infrastructure services”, said Mr Saidikia.

The Mostazafan Foufndation was established in 1980 as a public institution on the order of Ayatolah Khomeini. The Foundation is neither private nor governmental and therefore the Government cannot interfere with its affairs.

Read more about Mostazafan Foundation


IRITEC becomes a private company

The remaining shares of the state-owned company IRITEC were sold by the Privatization Organization this week. IRITEC is an engineering contractor active in metallurgy, mining, oil and gas. Part of the company shares were previously transferred to the private sector and the remaining 40% were recently sold for 800 billion IRR ($24.6m) via auction.

This year, i.e. March 2017 to 2018, 337 state-owned companies will be transferred to the private sector in two categories: in the first category, 100% of shares must be transferred to the private sector. However in the second category, the Government can keep 20% of the company shares. This year, 230 institutes have been placed in the first and 107 institutes in the second category.


40% of imported tea is smuggled

Head of the Iran Tea Organization, Mohammadvali Roozbahan, admits that smuggling of dried tea is vast, however, the trend is declining: “Around 80,000 tons of dried tea is imported into the country; official importation is 50,000 tons and the rest is smuggled into the country.”

The accelerated revival of tea gardens has been effective in the reduction of trafficking. “In order to revive tea gardens, similar to previous years, this year 60 million IRR is being paid as pruning loan per hectare of tea field. This is a zero interest loans which is to be paid back in five years. In the past few years, approximately 4000 hectares of abandoned gardens have returned to production. The revival of each hectare of tea gardens creates a new job”, continued Mr Roozbahan.

Based on statistics from the Tea Organization in 1395 (March 2016 – 2017), approximately 32,000 tons of dried tea was produced in the country which is equal to 70% of domestic consumption.