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Stone's Added Value Outstrips Oil's
 

The production and export of ornamental stones will be improved with the adoption of advanced mineral extraction systems, use of modern high-tech machinery for mineral processing, active participation in international exhibitions and support for investments made by local and foreign private sector entrepreneurs.

In 1376 (1997), Iran accounted for 8.2 per cent of the global output of stone products.

The quantity of stone that can be extracted annually from Iranian mines totals some 70 million square metres.

 

 

Iran is blessed with a bounty of minerals, possessing sizable deposits of marble, granite, travertine, china and many other substances. To fully make use of such riches, proper planning and careful organisation within long-term macro schemes are an imperative and will eventually enable the country to accrue large sums of added value. Most importantly, the growth of mining and related industries is critical in setting up an economy that is free from the capricious dictates of fluctuating oil revenues.

Major policy thrusts of the government in the mining sector include the expansion of private sector activities and ensuring the proper exploration of mines. Measures are currently being instituted aimed at bolstering Iran's standing in this sector.

One material that is abundant in the country is construction stone, some types of which are unrivalled in the world. Dubbed as hidden treasures, with deposits lasting for centuries, construction stones have the potential to be heavyweights among non-oil exports with the infusion of timely investments to develop and properly exploit these resources.

The Third International Exhibition of Mines, Construction and Ornamental Stones, held in Tehran recently, showcased huge domestic capabilities in the production and export of stones. In this industry, the country ranks as the second largest producer of stone worldwide.

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The exhibition, which took up 15,000 square metres of covered area and 10,000 square metres of open space, included 223 Iranian companies and 50 foreign firms representing among others, Germany, Italy, Canada, Sweden, Spain, the Netherlands, Finland, Belgium, France, Austria and the Untied Arab Emirates. Updates in a wide spectrum of fields were presented, including:, exploration and exploitation systems and machinery, stone-cutting equipment, as well as belts, drills, explosives, chemical products, stone glue, heavy and light concrete, road-making machinery, micronised powder, welding machines and heat and cold insulator. Different types of stone products were also put on display, such as doors and windows, fireplaces, construction piles, ceramics, roof tile, in addition to sanitary equipment.

Minister of Mines and Metals Es'haq Jahangiri graced the inauguration and took the opportunity to underline the important role of the mining sector as supplier of raw materials to the construction sector.

"Last year, 56 types of minerals were obtained from 2,000 active mines in the country, of which 1,300 contained construction materials and the remaining 466 had ornamental stones," he said.

Adding that Iran's annual mining output totals six million tonnes of stone, he added: "Policies implemented in this sector should be geared with a view toward long-term objectives and formulated in close coordination with experts and officials who are well-versed with the workings of the industry. With regard to ornamental stones, the country should completely implement a modern stone extraction system and make use of advanced processing technology. We should also participate extensively in international exhibitions, support private-sector investment and pursue export activities."

Referring to this year's new mining law, the official noted that the validity of mine exploitation licences have been extended from five years to 25 years.

He underlined that the sector has many potentials that are still to be fully explored, stating: "While we are the second largest producer of stone worldwide, our products only account for a meagre 0.5 per cent of global trade in these products."

Another speaker at the ceremony was the head of the Munich Exhibitions Organisation who expressed interest to invest in Iran and called for Irano-German cooperation in the manufacture of high-tech machinery and the exchange of technological know-how.

Remarking on Germany's active presence in the fair, he said: "The 25 German firms taking part in the fair occupy the largest space among foreign exhibitors."

Meanwhile, a member of the Industry and Mining Committee of the Iran Chamber of Commerce, Industries and Mines (ICCIM) reported that: "Exports of ornamental stones have been growing by 20 per cent annually from 1373 (1994), last year reaching 144,300 tonnes worth some 29.4 million dollars."

In the meantime, exports of processed construction stones amounted to 61,400 tonnes last year, fetching 15.9 million dollars. The global trade in stone totalled 20 billion dollars in 1997, while the aggregate output of raw stone was 82 million tonnes.

"Iran produced 6.7 million tonnes of stone last year, representing 8.2 per cent of global output. But its exports were scant," the official said. He urged that serious attention be paid to curb a drop in output and exports, a situation that could be brought about by the rising prices of spare parts of equipment used in stone extraction.

Current production capacity for stone per year in the country is around 70 million square metres, 50 million square metres of which are produced by 4,000 small- and large-sized units.

[Iran Commerce No.2, 1999][Publications]

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