Economic Analysis of the Copper Mining Industry of Iran

Citation

Oraee K, Goodarzi A & Oraee-Mirzamani N (2011) Economic Analysis of the Copper Mining Industry of Iran. In: SME Annual Meeting & Exhibit and CMA 113th National Western Mining Conference 2011. 2011 SME Annual Meeting & Exhibit and CMA 113th National Western Mining Conference "Shaping a Strong Future Through Mining", Denver, Colorado, 27.02.2011-02.03.2011. Colorado, USA: Society for Mining, Metallurgy, and Exploration ( SME ), pp. 132-138. http://www.smenet.org/public/Core/Events/eventdetails.aspx?iKey=AME2011&TemplateType=A

Abstract
Mining of copper ore and the related industries play an important role in Iran’s economy. Copper ore production in Iran accounts for 75% of the total production in the Middle East. All activities related to copper, that is, exploration, production, refinement etc are owned and managed by state owned companies. Decisions have been made to privatize all these activities. To assess the success of this privatization process, different components of the industry must be subject to economic analysis. In this paper, the cost estimation of all operations has been carried out. The total potential and attainable revenues have also been estimated using historical data available from the industry. Risk is a major factor in all mining activities and the copper industry of Iran has been subject to risk factors arising from many internal and external variables. These variables have been recognized and their effects evaluated. The effect of risk on the economic feasibility of the operations in the industry has also been analyzed.

Keywords
copper; economic analysis; Iran; Copper ores Iran; Mineral industries Iran; Mines and mineral resources Iran