The Mineral Industry of Iran in 2013
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2013 Minerals Yearbook IRAN [ADVANCE RELEASE] U.S. Department of the Interior May 2016 U.S. Geological Survey THE MINERAL INDUSTRY OF IRAN By Staff The mineral industry held a very prominent role in the and to construct facilities to process the mineral production economy of Iran, particularly the hydrocarbon sector, which (U.S. Government Accountability Office, 2013, p. 3–57). included the production of natural gas and oil, the refining of In September, the Ministry of Foreign Affairs took charge crude oil, and the distribution of hydrocarbons. According to of international negotiations concerning nuclear issues from BP p.l.c., Iran was the world’s third-ranked producer of natural the Supreme National Security Council. In November, Iran gas. Iran also was the world’s sixth-ranked producer of crude entered multilateral negotiations regarding sanctions relief oil and condensate (natural gas liquids) and accounted for with the P5+1 group of the United Nations (UN). The P5+1 about 4.0% of the world’s output (combined). About 2% of the group is made up of the five permanent members of the world’s crude-oil-refining capacity was located in the country, United Nations Security Council (China, France, Russia, the and Iran held 18.2% of proved worldwide natural gas reserves United Kingdom, and the United States) plus Germany; the and 9.3% of proved crude oil reserves in 2013 (BP p.l.c., 2014, consortium is also known as the E3+3 group. Also in November, p. 6, 10, 16, 20, 22). the International Atomic Energy Agency (IAEA) and Iran More than 40 mineral commodities were mined and about signed a “Joint Statement on a Framework for Cooperation.” In 20 metals or mineral-related commodities were refined or the joint statement, Iran agreed to cooperate with the IAEA to manufactured in Iran. The country was estimated to account allow IAEA inspectors managed access to the Gchine uranium for about 6% of the world’s output of gypsum; about 3% each mine, to provide information on the proposed locations of of the world’s output of barite, feldspar, and sulfur; and more 16 new nuclear powerplants, and to clarify a 2010 Iranian than 1% each of the world’s output of cement, industrial (or announcement about 10 additional uranium enrichment facilities glass) sand, molybdenum, and nitrogen. Mineral-related issues (International Atomic Energy Agency, 2013a, 12; 2013b, p. 1–3; (specifically uranium enrichment and the potential to produce Rezaian and Gearan, 2013). fissile material for the development of a nuclear weapon) The U.S. sanctions included the Iran Sanctions Act of 1996, negatively affected Iran’s relations with the Governments of as amended; the Comprehensive Iran Sanctions, Accountability, many countries (U.S. Government Accountability Office, 2013, and Divestment Act of 2010, as amended; Executive p. 3–4; Apodaca, 2015a, b; Crangle, 2015; Dolley, 2015; Order 13599 of February 5, 2012; Executive Order 13606 McRae, 2015; Polyak, 2015; Tanner, 2015; van Oss, 2015). of April 22, 2012; Executive Order 13608 of May 1, 2012; Executive Order 13622 of July 30, 2012; Executive Minerals in the National Economy Order 13628 of October 9, 2012; and Executive Order 13645 of June 3, 2013. The National Defense Authorization Act Iran had an extensive mineral production and processing for Fiscal Year 2013 (NDDA–2013) (Public Law 112–239), industry. Production, processing, transportation, and sales which was passed on January 2, 2013, included additional of crude oil and natural gas accounted for about 16% of the sanctions. Mineral sector activities affected by the subsection of country’s nominal gross domestic product (GDP). The mining NDAA–2013 titled the Iran Freedom and Counter-Proliferation and manufacturing sector, of which the production of cement Act of 2012 (Public Law 112–239, §§1245–1254) included the and steel were significant components, accounted for an sale, supply, or transfer (directly or indirectly to or from Iran) of additional 13% of the GDP, and the construction sector, 9% coal, graphite, precious metals, raw (which may include ore) or (tables 1, 2; Central Bank of the Islamic Republic of Iran, semifinished metals (such as aluminum and steel), and software 2014, p. 2). for integrating industrial processes (U.S. Department of the Various sanctions had been imposed by the U.S. Government Treasury, undated). on Iran since 1995. International sanctions related to uranium- The European Union Council Regulation (EU) No. 267/2012 enrichment and uranium-reprocessing activities were imposed restricted European imports of Iranian crude oil and petroleum beginning in 2006 owing to concerns about the potential products; prohibited investment by member States in the Iranian for the diversion of nuclear technology and the potential for petrochemical industry; prohibited trade by member States in Iran to recover and disseminate nuclear material (such as diamond, gold, and precious metals with the Government of plutonium) from spent fuel rods. The subsequent discovery Iran; and prohibited the delivery of newly printed banknotes of standalone uranium enrichment facilities in Iran, which and coinage to the Government of Iran. The UN had adopted potentially could produce highly enriched uranium for nuclear Resolution 1929 in 2010 in response to Iran’s apparent lack of weapons, resulted in additional economic sanctions. In the appropriate response to previous UN resolutions that obliged past few years, international sanctions had begun to affect Iran to suspend uranium reprocessing and enrichment activities Iran’s economy significantly, especially sanctions directed at (United Nations Security Council, 2010; European Union, 2012; mineral sector activities (such as the production, refining, and European Commission, 2016). transport of crude petroleum and metal ores), which historically have required large investments to develop the deposits Iran—2013 [ADVANCE RELEASE] 52.1 Government Policies and Programs Some foreign investment continues to be made, primarily in the petroleum sector, by state-owned Chinese and Indian companies. The Mining Code of 1998, which was based on Articles 44 Other issues (besides sanctions) that are expected to affect the and 45 of Chapter 4 of the 1978 Constitution of the Iranian mineral sector include high inflation and the relative Islamic Republic of Iran, and various amendments to the Mining lack of investment in the petroleum sector (Khajehpour, 2013; Code, regulate the mineral sector. The Petroleum Act of 1987 Rezaian, 2013; Trend News Agency, 2014; Melito, 2015, p. 3–4). clarifies the Government’s authority in the oil sector. References Cited Production Apodaca, L.E., 2015a, Nitrogen (fixed)—Ammonia: U.S. Geological Survey Data on mineral production in Iran are in table 1. Mineral Commodity Summaries 2015, p. 112–113. Apodaca, L.E., 2015b, Sulfur: U.S. Geological Survey Mineral Commodity Structure of the Mineral Industry Summaries 2015, p. 156–157. BP p.l.c., 2014, BP statistical review of world energy June 2014: London, United Kingdom, BP p.l.c., 44 p. The Ministry of Industries and Mines administered all mining, Central Bank of the Islamic Republic of Iran, 2014, Economic trends: smelting, and refining industries, except the oil and gas sectors, Central Bank of the Islamic Republic of Iran, no. 75, Fourth which were administered by the Ministry of Petroleum. Basic quarter 1392 (2013/2014), November, 30 p. (Accessed March 13, 2015, at geologic exploration and most initial evaluations of the nation’s http://www.cbi.ir/page/12242.aspx.) Crangle, R.D., Jr., 2015, Gypsum: U.S. Geological Survey Mineral Commodity mineral resources (except hydrocarbons) were performed by Summaries 2015, p. 70–71. the Geological Survey of Iran. In March 2013, the Iranian Dolley, T.P., 2015, Sand and gravel (industrial): U.S. Geological Survey Mineral Center for Statistics reported that there were 5,316 active Commodity Summaries 2015, p. 138–139. mines in Iran. Most of Iran’s mines were privately owned, European Commission, 2016, Information note on EU sanctions to be lifted under the Joint Comprehensive Plan of Action (JCPOA): Brussels, Belgium, although the Government, primarily through the Iranian European Commission, European External Action Service, January 23. Mines and Mining Industries Development and Renovation (Accessed April 20, 2016, at http://eeas.europa.eu/top_stories/pdf/iran_ Organization (IMIDRO), controlled many of the larger capacity implementation/information_note_eu_sanctions_jcpoa_en.pdf.) mining and mineral-processing companies, especially those that European Union, 2012, Council Regulation (EU) No. 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing produced aluminum, ammonia, coal, copper, iron and steel, and regulation (EU) no. 961/2010: European Union, March 24, 112 p. (Accessed salt (table 2; Statistical Center of Iran, 2014). December 7, 2013, at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do? uri=OJ:L:2012:088:0001:0112:en:PDF.) Mineral Trade International Atomic Energy Agency, 2013a, IAEA, Iran sign joint statement on framework for cooperation: International Atomic Energy Agency press release, The Central Bank of the Islamic Republic of Iran reported November 11. (Accessed January 11, 2016, at https://www.iaea.org/newscenter/ that hydrocarbons accounted for about 68% of the total value pressreleases/iaea-iran-sign-joint-statement-framework-cooperation.) International Atomic Energy Agency, 2013b, Implementation of the NPT of exports in 2013. Crude oil exports accounted for most of the Safeguards Agreement and relevant provisions of Security Council total hydrocarbon exports, which included condensate, natural resolutions in the Islamic Republic of Iran: International Atomic gas, and refined petroleum products. In 2013, total hydrocarbon Energy Agency, November 14, 13 p. (Accessed March 13, 2015, at exports were valued at about $63 billion compared with about http://www.iaea.org/sites/default/files/gov2013-56.pdf.) Khajehpour, Bijan, 2013, Can Rouhani resolve Iran’s economic conundrum?: $78 billion in 2012 and about $118 billion in 2011. The decrease Washington, DC, Woodrow Wilson International Center for Scholars, was attributed to the effect of international sanctions.