Facing Sanctions and War Pressures, Iran Turns to Mining to Replace Oil Revenue
Iron Metal exports
As tensions with Israel and the United States disrupt energy exports, Iran is pivoting to its vast mineral wealth in a strategic move to reduce its reliance on oil revenue. Facing sanctions and market contractions, Tehran has elevated the mining sector to a national priority, aiming to transform its underground resources into global trade leverage.
Iran’s government is focusing on metals like iron ore, copper, zinc, and bauxite, seeking to scale up both raw extraction and refined production to add value and reach high-demand markets, especially in Asia and the Middle East. Analysts at S&P Global note that Iran is expanding investment in mining and refining infrastructure, with an eye on export opportunities—particularly to China.
A Vision to Become the Middle East’s Metal Powerhouse
More than just exporting raw materials, Iran is also ramping up value-added production of steel, aluminum, copper, and zinc, aiming to balance trade deficits and position itself as a reliable regional supplier. With enhanced refining capacity, Iran is building the industrial base needed to support this transformation.
Iron Ore: Backbone of Iran’s Steel Sector
Iran holds approximately 3.8 billion tons of iron ore reserves, accounting for nearly 1.9% of global supply. Major mining sites like Chadormalu, Gol-e-Gohar, and Sangan produce close to 25 million tons annually, fueling domestic steel production and supporting exports to Asian and regional markets.
Zinc: Rising Exports to Turkey and the Gulf
With 15 million tons in zinc reserves, Iran produces nearly 1 million tons per year, primarily from the Angouran and Mehdiabad mines. Refined zinc meets domestic demand, while exports are surging to Turkey, Iraq, and the UAE, according to Economim.
Copper: 5% of Global Reserves in Iranian Soil
Iran commands a significant copper position with 2.6 billion tons in reserves. Annual production includes 1.2 million tons of copper concentrate and over 321,000 tons of cathode copper, representing 1.2% of global supply. Key production facilities include Sarcheshmeh, Miduk, and Sungun, managed by NICICO.
Bauxite and Alumina: Fueling Aluminum Growth
The Jajarm mine anchors Iran’s bauxite production, offering high-alumina content. Overseen by Iran Alumina Company, operations are supported by 10.6 million tons in reserves, targeting 582,000 tons of aluminum production between 2024 and 2025.
Steel: Powered by Energy, Positioned for Export
Iran’s electric arc furnace-based steel sector—led by Mobarakeh Steel, Khouzestan, and Esfahan Steel—has a production capacity of nearly 15 million tons annually, with over 10 million tons of direct reduced iron output. Steel, copper, and iron ore are in high demand across China, Turkey, and regional economies.
Non-Oil Exports Through Mining: A Strategic Shift
Driven by volatile oil revenues and global sanctions, Iran’s pivot to mining reflects an urgent bid to diversify income sources. With robust reserves and growing capacity in metals like steel, aluminum, zinc, and copper, Tehran aims to build a sanctions-resistant, export-driven economy.