Energy and transportation are high-efficiency industries: Vice President of MMDIC

Vice President of Financial and Economic Affairs of Mines and Metals Development Investment Company (MMDIC), Morteza Ali Akbari, announced the company’s plans for portfolio diversification.
“The value of the MMDIC portfolio is about 66,000 billion Rials. Given the portfolio’s focus on investing in the mining sector (iron ore) and metals (steel), there has been a decline due to the recession in recent years. So, we are determined to invest in other sectors and reduce the risk of investment,” he revealed.
According to him, the major investment of the company was in copper and steel. In the mining sector, the main investment was allocated to the iron ore mines as well as coking. MMDIC has recently invested in lead and zinc mines as well.
“To reduce the risk of investment, we have entered into the sectors required by the industry such as clean energy, electricity and combined transport. Currently, there is a relative recession in the industry, but we will face a shortage of electricity following the economic boom. So, investing in this sector will bring in considerable revenue because electricity is one of the basic needs of the industry,” Ali Akbari noted.

 Vice President of Financial and Economic Affairs of MMDIC maintains that another basic need of metal and mineral industry is transportation and one of the measures to control the costs is using rail transportation.
“The major part of the country’s products is currently transported by roads leading to an increase in the final cost of the production. Given the plan to produce 55mt and export 20mt steel in 2025, there is a need to develop railroad and maritime transport. That is why we decided to expand investment in both sectors,” he clarified.
Referring to recent discoveries in the field of mining and exploration of new iron ore mines, he said “It is necessary to invest in exploration and exploitation areas. We also need foreign investment and overseas companies are interested in the joint venture in the field of metals.”
Signaling the status of MMDIC in the production of metals, he noted “Currently, the company, with the cooperation of Omid Investment Group, supplies more than 75 percent of the country’s need for iron ore and steel. If we intend to pursue the set goals, we need to attract new and inexpensive foreign capitals.”
Ali Akbari believes that MMDIC and its subsidiaries which are mainly active in the fields of minerals and metals enjoy the enormous potential for attracting foreign finance. After the implementation of JCPOA, negotiations have been made in the areas of exploration, exploitation, development, and others.
“Recently, Korea Eximbank has created a credit line in the country. We negotiated with a bank to use this credit line. We are also negotiating with foreign companies and their representatives to select the best options for cooperation and investment,” he cited.
Commenting on the stock portfolio of the company and the industry’s recession, he said “The total portfolio of MMDIC is about 66,000 billion Rials ($1.7bn), and the company’s capital is 31,000 billion Rials ($815.7mn). The major portfolio of the company is in the field of steel, iron ore and copper. The years of recession affected the portfolio of the company causing a decrease to 35,000 billion Rials($921mn). Fortunately, with the improvement of the situation, the portfolio of the company is again showing a stable trend.”
Ali Akbari emphasized that investing in the production of strategic goods, like steel will be profitable. Also, considering the country’s future goals and the global markets’ demand, the development of infrastructure and operations in the field of the railroad and maritime transport will be an appropriate investment for the company.