Iran’s gold mine shows 16% output rise in H1 fiscal year

Gold production in a key Iranian mine has increased by 16 percent in the first half of the current calendar year.

A report by IMIDRO, the Iranian government’s metals and mining company, said gold production at Mouteh mine, located in the central Iranian province of Isfahan, had reached 162 kilograms (5,714.38 ounces) in the six months to September 21.

The report cited head of the miner company at Mouteh as saying that the mine had expected to reach an output target of 140 kilograms over the period.

Alireza Talari said annual output from the mine is expected to reach 300 kilograms (10,582.2 ounces) by the end of the fiscal year in late March.

Increased output at Mouteh have come despite a global decline in gold production in recent months mainly as a result of measures adopted by governments to curb the spread of the new coronavirus pandemic.

Iran’s mining and metals sector has seen a general increase in activity in recent years mainly as a result of sanctions imposed by the US on the country’s sale of crude. Washington has enacted similar sanctions targeting Iran’s trade of metals although the bans have largely failed due to technical difficulties that exist in tracking shipments.

Iran, a country with 440 metric tons of gold reserves, has seven active gold mining complexes. Annual production figures were stable at 5.8 tons in 2018 and 2019, far short of a domestic demand of 70-80 tons a year.

Talari said American sanctions had impacted the Iranian gold industry mainly through restrictions imposed on the imports of sodium cyanide by miners.

However, he said mines will continue to build out despite the bans as Mouteh Gold Complex plans to start production from a third mine and has plans to discover additional reserves.

 

Source: Press TV