Corporate News & Business

 

Iranian private consortium signs US$1b lead-zinc deal (Financial Tribune, 13 March 2017)

A consortium of Iranian private companies has signed a deal worth $1 billion with the Iranian Mines and Mining Industries Development and Renovation Organization to develop Mehdiabad Mine, one of Iran’s largest lead and zinc mines. According to IMIDRO Chairman Mr. Mehdi Karbasian, the consortium is made up of Iran Lead and Zinc Industries and Mining Association and six private companies, led by Mobin Mining and Construction Company. Mehdiabad Mine is a world-class oxide, sulfide and mixed oxide/sulfide zinc, lead and silver deposit. It has 154 million tons of proven and up to 400 million tons of estimated reserves, 70% of which are zinc and the rest are lead, silver and barite. According to IMIDRO, the mine’s reserves can reach up to 700 million tons through further explorations.

 

India, Iran need to take swift steps to bolster trade: FIEO (India Times, 12 March 2017)

The Federation of Indian Export Organisations (FIEO) has urged India and Iran need to take immediate steps like enhancing cooperation in the banking sector and rationalising duties on agricultural commodities to boost bilateral trade. Iran’s import duty on our basmati rice is about 45%. FIEO Director General Mr. Ajay Sahai said that there is huge potential to increase basmati rice exports from India but Iran should reduce duty to about 20%. Iran produces about 2 mt of rice against the demand of about 3 mt and imports the commodity mainly from India and Pakistan. Mr. Sahai urged the RBI to grant permission to Iranian banks to open branches in India as that could help facilitate bilateral trade. According to him, five Iranian lenders Bank of Pasargad, Saman Bank, Parsian Bank, Bank Mellat and Persia International Bank have applied for setting up branches in India.

 

Finance

 

Tehran and Muscat ink banking MoU (Mehr News Agency, 13 March 2017)

A joint session between central banks of Iran and Oman as well as a number of commercial banks of the two countries convened in Tehran and led to the signature of a cooperation agreement aiming to boost banking cooperation between the two sides. Central Bank of Iran (CBI) Governor Mr. Seif suggested that similar sessions be held regularly every six months in a bid to probe into barriers to reinvigoration of relations.

Task force formed between Iran, Finland to overcome banking barriers (Tehran Times, 12 March 2017)

Finland’s Ambassador to Tehran Mr. Harri Kämäräinen has announced the creation of a task force,comprised of high banking officials of the two countries to overcome the present obstacles as regards bilateral banking ties.

 

 

Oil & Gas

 

Hyundai seals contract for €3b petro refining project in Iran (Tehran Times, 12 March 2017)

On 12 March 2017, South Korea’s Hyundai Engineering Company (HEC) signed a €3-billion-worth Engineering, Procurement, Construction and Financing (EPCF) contract with Iran’s Ahdaf Investment Company for the construction of the second phase of Kangan Petro Refining Complex in Iran’s southwestern Bushehr province. Managing Director of Ahdaf (a subsidiary of Iran’s Oil Industry Pension Fund) Mr. Asghar Arefi said that with €120 million of investment, the first phase of the complex has witnessed a 30 percent progress so far, adding that the second phase includes building four plants for producing olefin, MEG, HD and LLD. According to Mr. Arefi, 95% of the project’s finance will be provided by South Korean banks within nine months and when the financing is finalised the project will be immediately put into operation.

 

 

Economy & Society

 

Iran to collect 30b $ tax income next year (Financial Tribune, 13 March 2017)

The budget law of the upcoming fiscal year (March 2017-18) has projected US$ 30.59 billion in tax and customs revenues. Last year’s tax revenues, excluding earnings from duties levied on goods and services, stood at US$ 17.6 billion. Tax revenues constitute 36% of the government’s total revenues and close to 50% of the current budget come from tax collections. Recovering unpaid taxes is INTA’s priority this year. Up until now, the administration has managed to collect nearly US$ 3.5 billion in arrears. About 60% of Iran’s economy do not pay tax, including 40% that are exempt from tax and 20% that evade tax payment. Tax evasion is estimated at US$ 7.7 billion annually. According to Head of the Iranian National Tax Administration Mr. Kamel Taqavinejad, value added tax and duties on goods and services account for half of tax revenues and the remaining 50% come primarily from direct taxation.

 

Iran 95% self-sufficient in water, electricity equipments (Tehran Times, 13 March 2017)

Iranian Energy Minister Mr. Hamid Chitchian said that more than 95% of Iran’s equipments needed in water and electricity sectors are produced inside the country. However, Mr. Chitchian stressed the importance of communication with the world saying that being self-sufficient doesn’t mean isolation from the world. After the implementation of Joint Comprehensive Plan of Action (JCPOA), Iran’s water and electricity sectors have experienced a great boom and foreign companies from all around the world expressed willingness to contribute to these sectors.

Iran transits 950k tons of commodities through rail (Mehr News Agency, 12 March 2017)

Deputy Head of the Islamic Republic of Iran Railway Company for Operation Affairs Mr. Hossein Ashouri said travel time remained as a major concern for goods owners adding that Iran Railways (RAI) is seeking to shorten transit time in a bid to boost rail freight transport. Mr. Ashouri stated that in the first 11 months of the Iranian year (21 March 2016-20 February 2017), 950,000 tons of goods transited using rail transport. He noted that the launch of regular scheduled trains has helped reduce travel time from Sarakhs to Bandar Abbas (distance of 1,620 kilometres) to less than three days.

 

By Natela Outtier
Follow Natela on LinkedIn