Private Sector’ Participation in “Mehdiabad”

Safari_02

 

With over 150 million tons of extractable lead and zinc, Mehdiabad Mine has opened a new window of opportunity for lead and zinc industry of Iran, creating a huge number of jobs in the area by its development plans as well as assisting establishment and flurishment factories of further down scale relevant to this industry. In an interview for Government’s Week, Amin Safari stated the above and carried on to calling operationalization of Mehdiabad development plans realization of Resistance Economy. For the full interview, read the below:

Please provide a history of Mehdiabad Lead and Zinc Mine.

With the first exploratory activity in 1950, Calamine Mine was operated underground, resulting in extracting approximately 15 thousand tons of calamine ore at a grade of 35%, upgraded to 45% later before exporting overseas. Afterwards, around 57 thousand meters of exploratory excavation in 215 borehole in Mehdiabad Mine have been performed.

In 1993, to reach the central deposit, which is Sulfide and located 150 meters underneath, a circular well was excavated with initial diameter of 4.5 meters and 324 meters of depth. However, the activities in this section were stopped after 10 years as the excavations were far expensive, explorations in Central Plane were completed, and open extraction of Mehdiabad ore was justified. The section is now supplying the water required by the Mine.

In 2005, the Industries and Mines Ministry then issued the operation license of Lead and Zinc and Barite Mine of Mehdiabad, which is now under name of IMIDRO (Iranian Mine and Mining Industries Development and Renovation Organization), and considered a Big Mine as stated by the relevant Ministry. Therefore, in 2006, waste removal, extraction and sales of mineral materials were initiated, and are currently ongoing. Regarding the plans to establish factories of zinc bars and concentrates as well as barite processing in future, processing and therefore a huge value added will be seen from Mehdiabad Mine Complex.

The Mine deposits are in 3 categories of lead and zinc, barite, and calamine, with the first one being reviewed by Mohandesin Moshaver Koosha Madan Company to estimate economic reserve of Mehdiabad ore and to plan an optimize pit for it in 2016. The company estimated the geological deposit of the Mine to be 716 million tons and the extractable deposit as much as 154 million tons. The main pit of the Mine will be 1903 meters long, 1433 meters wide, and 340 meters deep.

In barite, in 2013 it was decided that the deposit of the mineral as well as its operational plan should be reviewed. Therefore, Moshaverin Madan Zamin Company stated the barite ore deposit of BaSO4 to be 124 million tons after planning and estimating economic reserve of Barite Mine of Mehdiabad.

In the third sector (Calamine Mine), since 2010, a series of extractions initiated in north-western ore of Mehdiabad targeting one million and 849 thousand and 200 tons of minerals at a lead average grade of 18 to 20 percent. However, later, after explorations discovered and more studies conducted, actual deposit of calamine was estimated to be 322 thousand tons with grade of 9.5 percent of lead by Madan Zamin Company in 2012, making the continuation of the project economically impossible. Finally, it closed down in September 2013, but activities carried on in central part. By activities in Calamine Mine resulting in removal of 2 million and 281 thousand and 625 tons meter square waste, approximately 210 thousand tons of mineral with average grade of 10 percent were extracted.

What is your evaluation of Lead and Ainc Company of Mehdiabad in recent years and how much have they manufactured in the first 5 months of Iranian year?

In the recent years, exctraction of barite as one of the main products of Lead and Zinc Company of Mehdiabad has enjoyed a steady rise, with the complex extracting 37 thousand tons of barite in 2013, 330 thousand in 2014 and 580 thousand in 2015.

Also, the company broke a new record of extracting 336 thousand tons of barite in the first four months of the current Iranian year. This is 67 percent of the plan of the year.

What are the development plans of the company in terms of capacity, cost, execution, operation time and job creation?

The complex has long been attempting to attract investors to extract mine and to establish processing factories, regarding the huge deposits of lead and zinc. The attempts finally worked by planning policies and persistence of managers of the complex and IMIDRO and other relevant organs in 2016 and a consortium consisting of Mobin (one of the most powerful mineral contractors with the machinery needed), Kahanroba Engineering Company (one of the most experienced engineering and technological companies with experience to establish approximately 200 thousand tons capacity of lead and zinc in Iran and overseas), a number of companies in collaboration with Galankor, was formed and won the call and assigned as the investor of the complex.

A waste removal operation of 185 tons of waste and establishment of concentrate processing plants with capacity of 800 thousand tons or equivalent in 4 years are part of the development plans.

What is the capacity of Lead and Zinc Mine of Mehdiabad, and how will it effect the neighboring areas and country as well as lower grade industries once its development plans, and what will be achieved by it in general?

The geological deposit is 716 million tons and the extractable deposit is 154 million planned for 25 years. The capacity of plans is also planned to be used to establish concentrate zinc plants with 800 thousand tons of capacity as well as concentrate lead and silver plants with 80 thousand tons of capacity.

Having these national plans launched, lower grade processing units and hence more job creation and increased value added will be achieved as well as significant job creation in the area and value added in economy, with the final result of economic development and increased exports. Ultimately, such a plan can meet objectives of Economy of Resistance.

What is the position of Mine of Mehdiabad in the lead industry?

Regarding the fact that Mehdiabad deposit is in global class and is considered seriously by Iranian and foreign activists of lead and zinc industry, utilizing all capacities of the country along with facilitiations and specific assistances are required for the success of this national plan. Supplying the infrastructures of the plan such as water, power and licenses required is an example which takes national courage as well as cooperation of heads of other ministries and relevant organs.

Considering the downward trend of lead and zinc price in global markets, what do you think of the future of lead and zinc industry for Iran and the world?

Currently, zinc price is enjoying an uptrend in world markets and the future is bright for lead and zinc processing companies. As Mine of Angooran deposit, as the only supplier of lead and zinc units of Iran, is finishing, development of Mine of Mehdiabad operations is highly required to prevent any lack of raw materials.