Azernews.Az

By Aynur Karimova

Japan, which is keen to take the biggest piece of the pie on the Iranian market, is showing a serious will to strengthen economic ties with Tehran.

The two countries have signed a Memorandum of Understanding worth $10 billion in mining sector.

This was announced by Mehdi Karbasian, Iranian Deputy Trade Minister, Mehr News Agency reported.

However, the official did not mention any further details regarding the MoU.

Karbasian further added that the Chinese side has developed a $4.5-billion finance package for developing Iran's mines.

Besides Japan, Iran is in talks with German, Belarusian and Austrian companies, while contracts worth €6.5 billion have been signed with French and Italian companies.

The Islamic Republic of Iran is interested in attracting foreign investment in the country for developing the various sectors of the national economy.

In this regard, President Hassan Rouhani's European tour was of significant importance.

During a visit to Italy on January 25, Danieli Group signed deals worth about $6.2 billion with the Iranian Mines and Mining Industries Development and Renovation Organization for cooperation in the steel and aluminum sectors.

The agreements include the establishment of a joint venture and the supply of high-tech machinery and plants to a number of Iranian steel and aluminum companies, valued at $4 billion, IMIDRO reported earlier.

IMIDRO also signed a cooperation deal in the aluminum production field with the French Fives Group during the Iranian president's visit to Paris on January 27.

The agreement entails the establishment of a joint copper anode production company through an engineering, procurement, construction and finance contract.

Anode, primarily made from petroleum coke, is one of the main raw materials required for aluminum ingot production and its manufacture usually accounts for nearly 30 percent of production costs, the Financial Tribune reported.

The anode production plant, with a production capacity of 450,000 tons per year, requires a close to $400 million investment and is IMIDRO’s largest initiative ever taken to expand Iran’s aluminum production capability.

Iran’s estimated and proven mineral reserves total 60 billion metric tons. Iran holds 3 percent of the world's mineral reserves, which puts the country first in the Middle East and third in Asia.

Iran ranks among the 15 major mineral-rich countries of the world and exports its industrial and mineral products to 159 countries, including Iraq, China, the United Arab Emirates, India and Afghanistan.

Important mines of Iran include coal, metallic minerals, sand and gravel, chemical minerals and salt.

The country has the world's largest zinc and second largest copper deposits and ranks ninth for its iron reserves.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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