Investment Output Gap in Iran's Mines: Copper and Iron Ore's Production Share Doubles Their Investment Share

Based on Statistical Center of Iran data on operating mines for the Iranian year 1403, iron ore accounted for 35 percent of total mining sector investment while generating 50 percent of the sector's production value, and copper, with a 12 percent share of investment, produced 26 percent of output. According to Donya-e-Eqtesad, the production value of copper ore reached about 137 trillion tomans in 1403, while its recorded investment was only about 2.7 trillion tomans, putting its production to investment ratio at 51 times.

By contrast, gold ore absorbed 6 percent of mining sector investment but generated only 1.5 percent of production value, and sand and gravel, with a 13.5 percent investment share, accounted for just 4 percent of output. The report said the production to investment ratio across Iran's mining sector averages about 24 times, but cautioned the figure should not be read as a rate of return, since investment recorded in a given year does not necessarily translate into that same year's output, and some investment, particularly in exploration, only affects production with a time lag.