A recent study published in the Journal of Economic Geology has shed light on the copper industry development programs in Iran, highlighting both the challenges and opportunities that lie ahead for this vital sector. Lead author Adel Rouhi Jouybari, a Ph.D. student at the Faculty of Mining Engineering, Petroleum and Geophysics at Shahrood University of Technology, emphasizes the strategic importance of copper in Iran’s economy, given the country’s substantial reserves estimated at around 34 million tons, which account for 4% of the world’s total.
Despite these resources, Iran’s contribution to global copper production remains disappointingly low, with the country producing less than 1.5% of the world’s 20 million tons of copper annually. This underperformance raises critical questions about the effectiveness of current development strategies. “To maximize the potential of our copper mines, we must adopt a comprehensive industrial strategy that not only addresses domestic needs but also positions us competitively in the global market,” Jouybari states.
The research draws a compelling comparison with India, which, despite facing its own set of challenges, has made significant strides in its copper industry. In 2018, India was recognized as one of Asia’s top economic powers, a status that highlights the effectiveness of its strategic planning. The study suggests that Iran could benefit from examining India’s approach, particularly in areas such as expanding existing mines and revitalizing inactive ones. “By learning from India’s experience, we can develop a roadmap that addresses our unique challenges while leveraging our rich mineral resources,” Jouybari adds.
Among the pressing issues identified in the Iranian copper sector are government policies that hinder growth, including high export duties, salary increases, and fluctuating exchange rates. These factors have created an environment that discourages investment and complicates production. The research also points to the detrimental effects of international sanctions, which have restricted access to modern mining technologies and increased production costs. This has resulted in a cycle of declining exports and market instability, further exacerbated by internal economic policies that favor intermediaries and create barriers to entry for new players in the industry.
The study proposes several strategic solutions aimed at revitalizing the copper industry in Iran. These include a comprehensive nationwide exploration plan, increased budget allocations for mining activities, and a shift towards privatization of mining operations. Jouybari emphasizes the need for a collaborative approach: “The government must step back from direct involvement in mining and allow qualified private sector players to take the lead. This will foster innovation and efficiency in the industry.”
As the global demand for copper continues to rise, driven by its critical role in infrastructure and renewable energy projects, the stakes for Iran’s copper industry are higher than ever. The findings of this research could serve as a catalyst for policy reform and strategic investment, ultimately shaping the future of Iran’s mining sector. By aligning its development programs with international best practices, Iran has the potential to not only enhance its domestic economy but also to become a significant player in the global copper market.
For more insights into this research, you can visit the website of Shahrood University of Technology, where lead author Adel Rouhi Jouybari is pursuing his studies.
