Will Iran’s mining sector become key contributor to economic diversification?

Al-Monitor Pro Members

Dr. Bijan Khajehpour

Managing Partner, Eurasian Nexus Partners, Vienna, Austria 

June 13, 2023

In early March, the Iranian government announced it had discovered its first-ever lithium deposits in the Western province of Hamedan, adding to its list of over 60 mineral and metal resources. The mining sector offers Iran significant opportunities to further consolidate an economic diversification process. The country has the needed natural and human resources, inexpensive energy and also access to regional and overseas markets through international waters. However, decades-long neglect and mismanagement have produced a deficient mining industry in need of a major overhaul. The motivation to develop this industry is high, as it would also reduce the country’s economic vulnerability to external sanctions, but many obstacles remain, especially the need for investment and technology.