A Strategic Snapshot of Iran’s Mineral Power

Iran, endowed with over 7% of the world’s mineral reserves, holds a strategic position in the global mineral supply chain. With vast resources of copper, iron ore, coal, gold, and rare metals, alongside its renowned oil and gas wealth, the country offers enormous potential for industrial partners worldwide.

From fueling key markets like China, India, and the UAE to developing domestic value-added industries, Iran plays a vital role in both raw material exports and regional economic growth.

However, like any major producer, Iran faces certain logistical and financial challenges, which it continues to overcome through innovative trade strategies, new infrastructure, and regional partnerships.

Iran’s Mineral Wealth

resource utilisation, and proactive management, Iran will capitalise on its potential for economic and industrial advancement while meeting the world’s growing needs.

Mining development in Iran is ongoing. The country possesses 68 types of minerals, with 37 billion tons of proven reserves and over 57 billion tons of potential reserves. The estimated value of Iran’s mineral reserves was approximately $770 billion in 2014.

Mineral extraction accounts for about 0.6% of the country’s GDP, increasing to around 4% when related industries are included. Major mines in Iran include coal, metallic minerals, sand and gravel, chemical minerals, and salt. The largest number of active mines is located in Khorasan Province.

Iran holds significant undeveloped reserves of zinc (the largest in the world), copper, iron, uranium, and lead.

With roughly 1% of the world’s population, Iran controls more than 7% of global mineral reserves. According to 2017 estimates, Iran ranks second in natural gas and third in oil reserves worldwide.

Most of Iran’s mines are open-pit and globally significant, including the Sarcheshmeh copper mine, Angouran zinc mine, Maragheh zinc mine, Sanganeh iron ore mine, and Gol Gohar mine.

Strategic Access to International Waters

Iran enjoys unique and strategic access to international waters through two main routes, significantly boosting its potential in global mineral exports.

Southern Access

Iran’s southern coastline borders the Oman Sea, which is part of the Indian Ocean. Through the Strait of Hormuz and the Persian Gulf, Iran has direct access to open seas and major international shipping lanes. This southern route facilitates efficient export shipments to key global markets, including Asia, Europe, and Africa. The proximity to the Strait of Hormuz — one of the world’s most important chokepoints for maritime trade — allows Iran to quickly connect with global buyers and ports, reducing transit times and transportation costs.

Northern Access

Although the Caspian Sea is a landlocked body of water, Iran benefits from its northern coast by utilising a complex waterway network. Through the Volga River and an interconnected canal system, shipments from Iran can travel from the Caspian Sea to the Black Sea, and onward to the Mediterranean and the Atlantic Ocean. This northern corridor opens additional export routes to Eastern Europe and Central Asia, providing diversified logistic options and reducing dependency on a single export path.

Import Benefits From Iran

Diversified Shipping Routes: Having both southern and northern access allows Iranian mineral exporters flexibility to choose the fastest or most cost-effective routes depending on destination and geopolitical circumstances.

Reduced Transit Times: Direct access to the Indian Ocean via the south facilitates quicker shipments to large consumer markets in Asia and beyond.

Enhanced Market Reach: The northern waterways connect Iran to European and Central Asian markets that might otherwise be harder to access, expanding export potential.

Risk Mitigation: Multiple access points help mitigate risks related to geopolitical tensions or shipping disruptions in one region.

These strategic waterways significantly strengthen Iran’s position in global mineral trade by enabling efficient, flexible, and cost-effective export logistics.

• Competitive costs Advantages

Iran stands out in the global mineral trade not just because of its vast reserves, but also due to the cost-efficiency it offers to international buyers. Several key factors contribute to this advantage:

• Low Energy Costs

Iran is one of the world’s top energy-producing countries, which translates into significantly lower electricity and fuel costs for mining and mineral processing. This reduces the overall production cost compared to countries that rely on imported energy.

• Affordable Labour Market

The cost of skilled and semi-skilled labour in Iran remains lower than in many neighbouring or competing countries. Mining operations, transport, and handling can be conducted at a fraction of the cost found in industrialised economies.

• Shorter Supply Chain for Regional Buyers

For importers in Asia, the Middle East, and parts of Europe, Iran offers a geographically closer source of minerals, which means reduced shipping times and costs compared to sourcing from distant countries like South America or Australia.

• Integrated Mining Infrastructure

Many of Iran’s mining zones are equipped with nearby processing plants and logistics facilities (such as railways, highways, and ports), enabling smoother and more efficient movement of goods from mine to port.

• Competitive Export Pricing

Due to the combination of lower extraction costs, local processing, and currency exchange advantages, Iranian suppliers are often able to offer very competitive FOB and CIF prices — without sacrificing quality.

Challenges & Recent Developments

Despite its rich mineral resources and strategic location, Iran’s mineral export sector faces several challenges. However, recent developments and strategic adaptations are helping to overcome many of these barriers.

• Sanctions and Banking Restrictions

International sanctions have limited Iran’s ability to engage freely in global trade, particularly in terms of banking and payment channels. For many international buyers, conventional methods such as direct wire transfers or letters of credit (L/Cs) may not be feasible.

• Practical Solutions:

To address these concerns, many Iranian exporters now operate through regional offices or intermediary hubs in neutral trade zones.

At Raivaco, we have established a commercial office in Oman, enabling us to facilitate transactions smoothly through secure and internationally accepted banking channels. This provides peace of mind for our clients who prefer to finalise deals outside of Iran while still sourcing directly from our mines and facilities.

Conclusion & Outlook

Iran is emerging as a key supplier in the global mineral market. With vast reserves, cost-effective production, and access to strategic trade routes, the country offers unique opportunities for international mineral buyers.

Although certain trade restrictions remain, experienced exporters have successfully adapted by leveraging regional trade hubs and upgrading their operations to meet international standards.

Raivaco is proud to be more than just an exporter — we are mine owners. This means that we supply minerals directly from our sites, without intermediaries. As a result, our clients benefit from lower prices, consistent quality, and full supply chain transparency.

With a commercial office based in Oman, we are able to facilitate international transactions through secure and compliant banking channels. This allows our partners to work with ease and confidence, even in complex markets.

If you are an importer, distributor, or investor looking for a reliable source of Iranian minerals — from raw materials to sorted and processed grades — Raivaco is ready to be your trusted long-term partner.

📩 Contact us to get the best FOB/CIF prices or for More Information:

Mob & WhatsApp:
Oman: +968 7840 7278
Iran: +98 919 114 2266
Website: www.raivaco.com
Email: info@raivaco.com