Page 52 - IRANRptAug21

9.1.11 Metallurgy & mining sector news
Iran’s tyre output up 10% y/y in Persian Q1
Iran’s iron ore discoveries ‘grow by billion tonnes in six years’
Iran’s annual mineral exports fall 11% to $7.6bn
Iran’s NICIC says set to add 400,000 tonnes of ‘copper conc’ output
Iranian tyre production gained by 10% y/y in the first quarter of the Persian calendar year (started March 21) to over 11.137mn units, weighing 60,447 tonnes, according to Mehr News Agency.
Iran has 11 active tyre production companies including Goldstone, Kavir and Yazd Tire. The country is a regional leader in tyre-making, operating with a low cost of production, exporting regionally and benefiting in terms of export prices from the huge devaluation seen in the Iranian rial (IRR) in the past three years. Regional export markets include Iraq, Pakistan, Afghanistan, Azerbaijan and Armenia.
In the Persian 1Q, motorcycle tyre production saw the biggest jump, with the number of units moving up 58% y/y. Some 2,062 such tyres were produced. More than 5.89mn car tyres were made.
In August last year, the Ministry of Industry, Mining and Trade said that increasing investment in tyre production in the country was necessary as Iran's transport fleets were growing and demand remained strong.
Iran's total annual capacity for the production of tyres is 426,000 tonnes. The country accounts for 41% of regional tyre production.
The official data showed several tyre-making enterprises were operating at 60-70% of their capacity because of dependence on imported raw materials.
Around one billion tonnes of additional iron ore reserves have been identified in Iran over the past six years, according to the Iranian Mines and Mining Industries Development and Renovation Organization (Imidro), as reported by Tehran’s Financial Tribune.
Total iron ore reserves reportedly stand at 2.74bn tonnes.
The newspaper report added that Imidro said explorations for more reserves were currently under way in 30 provinces, across 107 zones spread over 660,000 square kilometres.
The value of Iran’s mineral product exports fell 11% y/y to $7.6bn in the 2020/2021 Persian calendar year (ended March 20) at a volume of 55mn tonnes, 21% down year on year, according to the Iranian Mines, Mining Industries Development and Renovation Organisation (IMIDRO), the Financial Tribune reported on May 2.
Tehran has in recent years attempted to boost its mineral exports to help counter dwindling oil sales amid US sanctions. But the coronavirus crisis likely hindered that effort last year.
The data showed steel exports worth $4.1bn and copper exports worth $958mn. A figure of $758mn was given for cement shipments.
The value of mineral product imports was 6% up year on year to $3.4bn at 4.15mn tonnes, 13% up year on year.
National Iranian Copper Industries Co’s (NICIC’s) three copper-related projects are set to come online this year to produce an extra 400,000 tonnes of copper concentrate, according to local media reports.
The projects would bring the privatised company estimated additional revenue of $800mn, according to a Tehran Times report that cited NICIC managing director Ardeshir Sa'd-Mohammadi.
Production of copper concentrate in Iran rose 6% y/y during the 11 months from March 20, 2020 until February 18, 2021 (namely, the first 11 months of the past Iranian calendar year). Over 46mn tonnes of copper concentrate was
52 IRAN Country Report August 2021 www.intellinews.com