BAKU, Azerbaijan, February 27. Over half of the mines in North Khorasan Province in the northeastern region of Iran, specifically around 140, have ceased operations, Mehdi Sajjadi, director of the branch of the Iran Construction Engineering Organization (IRCEO) in North Khorasan, told reporters, Trend reports.
Sajjadi indicated that there are presently 274 operational extraction sites in North Khorasan Province, with the cessation of mining operations being ascribed to elevated operational expenditures, the deficiency of processing facilities, and the inadequacy of financial disbursements.
He also mentioned that the outdated equipment and machinery in the mines, coupled with the rise in foreign currency exchange rates against the Iranian rial, has made the situation even more challenging. This has led to significant issues for the mining sector.
"In North Khorasan Province, mines extract 5.8 million tons of minerals annually, with 70 percent of it being construction materials," he added.
Additionally, Sajjadi brought out the fact that new mining site discovery necessitates large capital, and that the commercial sector has demonstrated minimal enthusiasm for investing in this domain.. Therefore, the government needs to step in and invest in this sector.
To note, the confirmed reserves of mines in North Khorasan exceed one billion tons, with a mineral extraction potential of 11.5 million tons per year in the province.
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