Iran steels itself for comebackSeptember 24, 2012
Are Western financial authorities taking their eye off the ball by focusing sanctions on Iran’s oil? According to the monthly investor newsletter from Turquoise Partners, Iran is boosting its steel production, and is set to receive a 65 million euro loan from the notorious Islamic Development Bank to expand coal mining in southeast Iran.
Be warned that the Iranian theocracy can use revenues from these sectors not just to diversify their economy, but to help buoy their budget, sustain their jackbooted regime, and fund their nuclear aspirations.
From the latest edition of “Iran Investment Monthly”:
Iran the 15th largest steel producer
According to the World Steel Association, Iran’s crude steel output totaled 7.36 million tons in the first quarter of 2012 and the country was ranked the 15th largest steel producer in the world and the second in the Middle East after Turkey…
Despite global economic sanctions, the country’s steel output increased by 5 million tons during the past two years reaching to 17 million tons…
A EUR 65 million loan to Iranian Mining Sector
Islamic Development Bank (IDB) will be granting a EUR 65 million loan in order to equip Khamroud coal mines in Zarand, Kerman province. According to the Ministry of Economic Affairs and Finance, the issuance of this letter of guarantee by the ministry means that the project has entered its administrative phase. Total funding requirements to equip these coal mines is around EUR 100 million, and the remaining EUR 35 million will be financed through local partners. There are 30 million tons of coal coke in Khamroud mines; through development of this project, some 750 thousand tons of raw coal and 400 thousand tons of coal concentrate can be extracted from these mines over a four year period. A report by IMIDRO indicates that extraction of these reserves can ultimately continue for a 22 year period. The project itself will create 1000 direct and 5000 indirect jobs.
Iran has so far obtained $2.2 billion in loans from the IDB and the country’s major infrastructure projects have been funded partially through the financial assistance of this bank. IDB is a multilateral development financing institution located in Jeddah, Saudi Arabia…
Readers should also take a look at Shariah Finance Watch’s prior coverage of the Islamic Development Bank (IDB). It is fitting that IDB would be active in Iran given the Islamic Republic’s deep involvement and experience with sharia finance.