Why Iran is Moving to Halt Exports of Raw Minerals

As the Iranian government plans to reach output of 55 million tons of crude steel by 2025, it appears reasonable to end or somehow minimize the selling of raw minerals — including iron ore — to complete the steel production chain and increase the industry’s share of GDP. However, as critics like Ghoroqi and Moradi say, the government can’t ban miners from exporting raw iron ore since it would only lead to the closure of mines.

Experts also note that even if the new processing plants become operational in the coming months, domestic demand for iron ore is still far less than production and miners will thus have no choice but to export their goods to finance their projects. They say it would take at least a decade to reach a position in which there is enough domestic demand for iron ore.

However, the government can speed up the process by supporting miners and providing them with reasonable banking facilities to help them invest in processing plants and complete the country’s steel production chain. For the time being, experts say a uniform strategy can’t be applied to all mines as they vary in terms of capacity, scale and type among other properties.

As such, the hasty implementation of the government’s plan could end up harming domestic producers, some of which have already been forced to close their production units due to a drop in global iron ore prices.

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