TEHRAN – Manufacturing of agricultural and mining machinery in Iran has increased by 100 percent in the first nine months of the current Iranian calendar year (March 21-December 21, 2022), an official with the Industry, Mining, and Trade Ministry said.

According to Abouzar Jamshidvand, the director general of the ministry’s Office of Agricultural, Construction, and Mining Machinery, during the mentioned nine months 1,800 such machines were manufactured in the country.

“In the first nine months of 1400 [the previous Iranian year], 900 machines were produced in the country, and with the plans made to use the maximum capacity of domestic production to meet the country's needs, the production in the first nine months of this year has doubled,” Jamshidvand told IRIB.

Stating that in the last few years, a suitable production capacity has been created in the field of machinery, he said: “Currently, more than 80 percent of the machinery needed by the mining sector in the country can be produced by domestic manufacturers.”

“Of course, due to the lack of proper supply of machines in the past and the accumulated need in this area, there is still a long way to meet the country's full demand in this sector, so part of the demand should be met through production and another part through imports,” he added.

The official noted that a working group was formed in the Industry Ministry earlier this year to assess the demand and capacities in the field of mining machinery, and some contracts were also concluded between domestic manufacturers and some of the country’s mining companies.

He further noted that there are 26 production units of agricultural, construction, and mining machinery active in the country, of which 15 units are major ones.

“Considering the demand for such machinery in the country, it is necessary to increase the production capacity of such units in the country,” Jamshidvand said.

In mid-July 2022, the deputy, industry, mining, and trade minister for mines and mining industries said that there are more than 15,000 mining machines, which are over 20 years old, in the fleet of mining industries of the country, which need renovation and replacement.

Reza Mohtashami said some of these machines can be renovated, but the rest should be replaced through imports.

He said the government has only allowed the import of mining machinery that cannot be manufactured inside the country.

The import of mining machinery without a history of manufacturing inside the country has been allowed by the government without restrictions, and in this way, a good prospect is expected in the mining industry equipment sector in the future, the official said, adding that in terms of the other machines that can be manufactured inside the country, the import will not be done.

Having 81 different types of minerals, Iran is one of the top 10 mineral-rich countries across the globe. In this regard, the Iranian government is pursuing several programs for promoting the mining sector as a major contributor to the country’s economic growth.

But despite these programs, this sector is facing several challenges.

According to a report released in the past Iranian calendar year by the Research Center of the parliament, the challenges of the mining sector are 44 percent related to laws and the lack of a long and clear mining strategy, 33 percent are related to mismanagement and problems of miners, 13 percent to environmental and natural resources problems, and 10 percent are related to international problems.

Lack of machinery is also a major challenge in the mining sector.

A board member of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) has said: “At present, due to the shortage of these machines, purchase prices have skyrocketed and, in addition, their rents have become very expensive. At these prices, it is not profitable for small and medium-sized mines to rent machinery and become active. Finally, the miner has the mine and the raw material, but it is not economical due to the expensive operation of the machinery”.

EF/MA