Not only in oil and gas, but also Iran is rich in mineral reserves of industrial and base metals.
As one of the 15 most mineral-rich countries in the world, Iran has more than 68 kinds of mineral with total proven reserve of 43 billion tons and probable reserves of 20 million tons with an estimated value of 700 billion USD.
With 4.1 percent of the world’s iron ore reserves, Iran is the 10th largest holder of iron ore calculating over 35 million tons of output per year. Being the second largest copper reserve holder, Iran has 7 percent of the world’s proven reserves of copper, according to Iranian Mines & Mining Industries Development & Renovation (IMIDRO). There are over 5,000 mines currently in operation in Iran divided into metal with 12 and non-metal with 36 ores being exploited. It’s important to mention that Mines and Mining Industries currently employ more than 620,000 people in Iran, according to IMIDRO.
The previously mentioned potential of reserves, along with various energy sources and cheap labor force, brings a competitive advantage for the base metal industry in Iran.
So far, the most important weakness of the industry has been unfavorable contract structures limiting profitability for foreign investors, as all of the mine’s exploitation license belongs to the government, although changes have been made to the foreign policy recently and it seems to be generous opportunities for foreign investors.
Market Share of mine and mining industries in Tehran Stock Exchange is more than 25% of total value of Stock Exchange. The average P/E ratio in this section is 5.05x.
Below is the list of top companies listed in the Tehran Stock Exchange (TSE) along with their market shares:
The chart below depicts the performance this industry has made during the past decade.
It is forecasted that in the post sanctions era, and after recovering from the global recession in the commodity markets, the base and mineral metals industry has the potential to bolster economic growth in Iran.