IMIS2 solutions to remove investment barriers

2nd Iran Mines & Mining Industries Summit (IMIS2) provided the managers of international companies with an opportunity to present their plans for cooperation with Iran. At the same time, the strengths and weaknesses of Iran’s economy were addressed.
The attendance of Iranian senior officials in the meeting also indicated the fact that policymakers are making an attempt to show the economic and mineral potentials of Iran and at the same time to resolve investment restrictions.
Ayatollah Akbar Hashemi Rafsanjani, late Chairman of the Expediency Council, emphasized the relationship between IMIDRO and foreign companies in the meeting.
He stated that IMIDRO as an organization active in the field of policy-making and as a leader of Iran’s mining and industry sector is to submit the proposals, facilitating the foreign investment to the council.
The council, according to the Iranian constitution, is to develop macro policies in economic, social, political, and security areas.
In the summit held on December 10-11 in Tehran, Rafsanjani noted that foreign investment will be facilitated in the light of negotiation with foreign companies.
He asked IMIDRO to submit the proposals to the council, so that effective actions can be taken in this regards.
«The ground is prepared for the participation of domestic and overseas companies,» he noted.
In the event, Mohammad Reza Nematzadeh, Minister of Industry, Mine and Trade announced that due to the recent amendment to the Mines Act introduced to the government, some minor restrictions affecting investment in the mining sector are lifted.

On his part, Mehdi Karbasian, Chairman of IMIDRO called IMIS as an excellent opportunity for cooperation underlining that the ties will be based on mutual benefits.
Referring to the economy of Iran and the measures undertaken by the government and the Foreign Ministry, Karbasian said ,«The cooperation will be secured based on the supportive laws and regulations along with national commitment.»
According to him, the policies adopted by Rouhani Government on supporting investors are transparent and economic structures have been modified.
«Development plans presented in areas such as steel, aluminum, copper, zinc, gold and infrastructures have provided an excellent opportunity for cooperation between Iran and other countries», he emphasized.
Chairman of IMIDRO asserted that in recent years, IMIDRO has invited tenders for new projects including Parsian port, Parsian Special Economic Energy Zone which was received well by overseas companies.

Risk coverage
In the two-day summit, Ahmad Jamali, Director of Foreign Investment announced that Iran has considered a supporting approach to minimize foreign investment risks, particularly the political ones.
In addition, he announced that over the last 9 months of the current Iranian year (March to December 2016) over $11.5 bn foreign investment has been approved.
According to him, some plans including tax incentives (5-13 year exemption), three-year visa and residence permit for foreign investors and their families are taken in to account.
Director of Foreign Investment noted that the organization has established an unparalleled unit for coordinating and facilitating overseas investment in the country’s capital and 31 provinces.
«According to Foreign Investment Promotion and Protection Act (FIPPA) came into force in 2002, foreign investment is considered as direct investment and under contracts. Likewise, all international conventional methods such as FPI and FDI are accepted within the framework of this law», Jamali clarified.
Foreign investment can be made independently or in partnership with domestic companies.
The official underlined that there is no limitation imposed on money transfer, equipment, outflow of capital and its profit.

Global integration, best overseas investment practice  
Founder and CEO of Euro Invest Trading Ltd, Peyman Molavi, holds that integration with leading global companies is the best practice for attracting foreign investment.
Chairman of Plexus Resources (ATD), Charles Blackmore, is of the view that despite the high potential capacity and diversity of Iranian mines, there is little accurate information in this field.
«Iran needs to develop a strategy in the mining sector and some clarifications are required with respect to local laws and regulations, banking problems, administrative bureaucracy, etc.,» he explained.
Senior Director of ABACO GLOBAL LTD, on his part, emphasized the fact that investors have no precise idea about Iranian mines and a great number of problems are due to the lack of comprehensive knowledge.
On the other hand, CEO of JSC EXIAR, Alexey Tyupanov, from Russia referred to the absence of foreign investment as the main obstacle on the way of full exploitation.
«Iranian banks backed by Central Bank of Iran have made a great contribution in establishing a connection between local and foreign banks,» he added.
Noting that negotiation between his company and Iranian banks is initiated, the Russian economic activist expressed hope that MOUs will be signed to improve relations between the two countries.
Vice President of NFC, Qin Junmen, revealed the company’s plan to provide Iran with the latest energy intensive technologies for producing aluminum ingots.
Anglo American plc’s Head of Exploration, Stuart McCracken, maintains that the company, as an investor partner, is able to apply new technologies in exploration operations in Iran.
«As an exploration company, we are carrying out operations in different countries including Africa, Australia, Europe, U.S., etc. This approach will both expand the company and lead to great profit in the case of successful exploration,» he noted.