Creamer Media Login

Sanctions to have limited impact on Iran’s mining industry – BMI

15th May 2018

Font size: - +

JOHANNESBURG (miningweekly.com) – The re-imposition of US sanctions on Iran will have only a limited impact on the country’s mining and metals industry in the short term and is expected to do “little additional damage to an industry already crippled by a myriad of domestic operational challenges”.

This is according to BMI Research, which states that foreign investors are already steering clear of the country’s mining and metals industry, owing to inefficient bureaucracy, inadequate infrastructure and corruption. The sector is also consolidated and consists primary of domestic and State-owned miners, which will continue to limit new miners from entering the market.

However, European and Asian investors have shown interest in mining projects in Iran, but BMI notes that should more signatories follow in President Donald Trump’s footsteps and withdraw from the Joint Comprehensive Plan of Action (JCPOA), the country’s economic growth will suffer, resulting in less domestic demand for metals and ores.

Domestic construction and infrastructure developments are a key driver of demand for iron-ore and industrial metals.

BMI is forecasting short-term growth of between 5% and 6% for the Iran mining industry.

The JCPOA is also known as the Iran nuclear deal. Trump announced on May 8 that the US will withdraw from the plan and that it will discontinue waivers for sanctions on the country. The first batch of sanctions, targeting the automotive industry among others, is scheduled to be re-imposed in August, followed by a second batch, which includes the oil sector, in November.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕