According to the Mining Investment Insurance Corporation’s public relations, Farid Dehghani said in his interview with ISNA, considering the corporation’s activities in 2020,: “despite all the problems caused by the COVID-19 pandemic, and the many other things which slowed us down during 2020, we had a very profitable year, considering the issuance of the insurance policies, supporting the technology section of the Mine and Mining Industry, and we could set new records. Despite all the commuting limitations for the supervising and primary inspections of the mines, the technical team of the corporation was able to increase these inspections to a considerable amount.
Beside the financial provisions from banks, the corporation was also able to financially support the small mines through capital market, which would be a new path for providing financially for the small (mining) stock exchanges which do not have enough sources to participate in huge capital markets. The Corporation will act as a guarantor here. Due to the new agreements by the Corporation, it is now possible to have financial facilities from the capital market and the stock market too, beside the banks. We have signed contracts with INIF to grant facilities to the mines which are more progressive in mining technology and innovation. Aside from these facilities, we have also considered for these companies facility interest subsidy, which would be paid, according to IMIDRO’s decisions and approvals.”
For the Small Mines to Function, It Is Absolutely Necessary to Support Domestic Machinery Producers
Pointing out that there has been done a lot to support domestic machinery manufacturers, Mr. Dehghani continued: “if we want the mining section, and specially the small mines, to function properly, we need to support those domestic companies which manufacture mining machinery and tools. We shouldn’t forget that without the renovation and improvement of the machinery, we would have a huge reduction in production and extraction, and so in processing during the next few years.”
The Consoler of the Deputy of Mining of the Ministry of Industry, Mine and Trade added: “Despite all our efforts, we couldn’t reopen the path of registering and ordering machines from abroad because it was blocked, and so we couldn’t use this potential in the first three months of 2021. We hope to be able to register again with the reopening of the tariff.”
Things Were Not Carried Out as Planned
“During the last year, in covering the risks of discovery, there wasn’t enough support for our potentials and the applicants, since the budget considered for technical and credit help of the managed funds from the Planning and Budget Organization was not enough, and so there was the lack of needed sources, and things were not carried out as planned, we hope to do better in 2021.
To solve this problem and get enough support for new discoveries, and for being able to cut the needed funds of this section from the managed funds, we referred to what was there is the S.28, second addendum, so that we could get enough sources considered in this section for IMIDRO and IMPASCO and use them for primary and supplementary discoveries.”
Pointing out that there has been done considerable amount of work so that more banks could register our insurance policies, the CEO continued: “we are at the moment working on an agreement with Tejarat Bank so that other banks could also help the mining section and grant facilities to the mining industry, specially to the small mines. To facilitate the processes for the applicants, everything is being done electronically since last year, and the number of applicants coming to the corporation reached its minimum.”
A 500 Billion Tomans Increase in the Corporation’s Capital, the Most Important Case in 2020
The most important thing in 2020, according to Mr. Dehghani, was the 500 billion Tomans increase in the corporation’s capital, which happened with the help of IMIDRO’s management team. He said: “According to our plans, this will increase in 2021 to 1000 billion Tomans. We have got the required approvals for it, and we hope to be able to keep our position in supporting the mining section and so help the small mines get on their feet.”
The Biggest Flaw of the Mining Section Is Ignoring the Systematic Discoveries and the Lack of a Well-Written Strategy
Explaining the biggest flaw in the mining section, by removing which the mining section can step towards the “production: support and eliminating obstacles” motto, Mr. Dehghani said: “not paying enough attention to the systematic discoveries can be the biggest flaw in the mining industry, which needs planning and serious consideration. There is also the lack of a mutual conversation between the financing section, the environment section and the management of some of the mining sections, which leads to us not knowing, even now, which strategy will help us expand the mining industry, supporting the small mines or expanding the large ones, because there is no fixed and written strategy for us to know which way we should go in the mining section.
The mining section is a costly one, with all its business and structure risks all over the world. Whatever support and regard for the mining section requires long-term strategies brought by the management teams, which are approved by beneficiaries and people who work in this section. It is not possible that there wouldn’t be any written and updated structure from the environment department, which should be communicated to us, and we expect the mining section to continue its activities regarding the preservation of the environment. At the same time we cannot continue doing anything for either small or large mines without communicating with the Natural Sources Organization. In all the countries, the mining sections plan a long-term strategy, but we don’t have it here. In Chile, for example, small mines do not work, and the mining section focuses on the large ones, so they do deep explorations and so it is the large mining companies who do the discoveries, and they do mining whenever they have enough supplies, but here, we have the same outlook towards both the small and the large mines.
The Environment department is against developing small mines since it still doesn’t have a fixed and updated instruction for it, so there would come the problems. In the private section, since investors are not familiar with the bureaucracy, they face a lot of challenges at the beginning of their activities, and so their capital is blocked.”
Which One Is the Main Administrator of the Mining Section?
The CEO of the Mining Investment Insurance Corporation said: “despite the existence of three very important organizations and management teams in the mining section such as IMIDRO, the Mining Deputy of the Ministry of Industry, Mine and Trade, and the Geological Survey & Mineral Explorations Organization of Iran, there is no definite responsibility assigned to any of them, and it is not clear which one is the main administrator of the mining section, so it is obvious that the mining section, the private sector and the investors would be confused. The main problem, is the structure which has to be written and announced. Unfortunately, since we do not have enough communication with other countries, we’re far behind them when it comes to mining technologies.”
Plans for 2021
At the end, considering the road map drawn for this corporation for 2021, Mr. Dehghani said: “our first priority in this year is to increase the capital, and then identifying the successful stock exchanges in technology, and we will definitely continue our support with the increase in our capital. For the second half of 2021, we are working on other things. If we could double the number of the insurance policies, then we could say we’ve been successful.”