Categories: Base Metals / General Market Commentary / Precious Metals
Topics: General Base Metals / General Market Commentary / General Precious Metals

Resurgent Iran to impact copper, zinc prices through 2020

Oct. 12, 2016

Resurgent Iran to impact copper, zinc prices through 2020

 

While not expecting a boom, BMI Research in a new report is positive about the medium-term growth outlook for Iran’s mining industry following the lifting of decades old Western sanctions at the beginning of the year.

Over the next five years, new investment from Europe and Asia will accelerate the growth of the Middle-Eastern nation’s mining sector, which contains vast underdeveloped reserves but is in dire need of modernization and new technology.

BMI cautions progress will be slow given that the industry remains dominated by state-owned companies despite two rounds of privatization of state-owned copper producer Nicoco (shares were taken up other government enterprises and banks).

The country's inefficient bureaucracy, corruption, inadequate infrastructure and low mineral prices will also drag on development limiting growth of Iran's mining industry value to an annual average rate of 4.2% through the end of the decade reach a total of $26.6 billion. Output growth across the sector will slow to 4.9% from 2016–2020 compared to 6.6% during the previous five years.

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