Minerals and Raw Materials

Iran is the 5^th richest country in the world in terms of natural resources. Around 7% of the world’s minerals and raw materials are in Iran. Vast reserves of minerals such as oil, gas, crude iron, gold, silver, copper, phosphate, and coal set Iran a significant position in the global mining and raw material market.

Every year, millions tons of minerals and raw materials are exported from Iran for construction, manufacturing, and industrial applications. Growing global demand for industrial and construction materials has made Iran a profitable choice for international buyers and domestic suppliers.

Mineral and raw material exporters need to determine their field of activity. Then, they should focus on marketing strategies. Understanding the right mining product and the target countries, based on market’s demand, plays a vital role in a successful international trade.

The Importance of Mineral and Raw materials from Iran

There are several key reasons that exporting mineral and raw materials from Iran is profitable.

Abundant and Diverse Resources

Iran is among the first ten countries in the world in terms of mineral diversity and volume. Over 7% of the world’s mineral reserves and more than 68 kinds of active minerals are in Iran. The diversity and abundance of Iran’s mineral materials makes a huge supply base and minimizes sourcing costs.

High Global Demand

Mineral and raw materials are used vastly in global industries, from construction and manufacturing to chemicals and electronics. Many countries such as China, Russia, and European countries choose Iran as a reliable source to meet their growing needs.

Strategic Geographic Location

Iran is located at the crossroads of major trade routes between Europe, Asia, and the Middle East, giving it access to a vast consumer market. Iran also has a long coastline on the Caspian Sea, Persian Gulf, and the Gulf of Oman, further enhancing its strategic position.

This strategic location in the Middle East is a key factor in minimizing the costs and time of transportation.

Low Extraction and Processing Costs

The costs of labor, energy, and operation are affordable in Iran. Plus, the price of raw materials is often lower than other countries. Therefore, local exporters and international buyers can gain significant profit margins.

Government Support and Infrastructure

Mining sector in Iran acts as a major driver for non-oil exports. The Iranian government has prioritized this sector by providing incentives and developing infrastructure to support mining and export operations.

Favorable Exchange Rates

The currency exchange rate in Iran makes Iran’s exports more competitively priced, compared to similar industry materials from other regions.

Underdeveloped Potential

Many mineral reserves of Iran haven’t been exploited yet. This is a good opportunity for early entrants to invest in mining operations at competitive rates, or secure long-term supply contracts.

Top Exported Mineral and Raw Materials in Iran

Some minerals and raw materials exported from Iran are:

Iron Ore

Iran is one of the Middle East countries which holds the richest iron ore reserves. In the first half of 2024, over 9 millions tons of iron ore was exported from Iran. Iron ore is one of the raw materials in steel production.

Iron ore exporters usually export their products to China, Turkey and India. As the demand for steel grows globally, the potential for exporting Iranian iron ore will be high.

Copper

Iran holds 6% of the world’s copper reserves, containing 60 million tons of copper. In 2024, Iran ranked 6^th globally in terms of copper. The Sarcheshmeh Copper Complex is one of the largest global producers of high purity copper, concentrates, and other derivatives. Copper is a vital industrial metal in the power industry, construction, and renewable energy technology.

Iran’s copper is mainly exported to large industrial countries such as China. In fact, China has the biggest copper export market due to its wide manufacturing space and infrastructure projects. Turkey is also Iran’s other major copper export target. Other important Iranian copper export destinations are South Korea, Japan, Armenia, Georgia, Azerbaijan, India, Pakistan, Russia, Oman, Qatar, the United Arab Emirates, and other Asian countries.

Gypsum and Limestone

Iran is very rich in gypsum and limestone reserves. Plus, Iranian gypsum and limestone are highly qualified and have a minimum percentage of impurities. This has increased the demand of Iran’s gypsum globally.

Gypsum and limestone are foundational materials for cement and drywall production. Many neighboring countries such as Iraq, Qatar, UAE, India, and Kuwait are the major Iranian gypsum buyers due to their large infrastructure projects.

Zinc and Lead

Iran is a main exporter of both zinc and lead in the world. Over 80% of Iran’s zinc and lead production are exported. This country is also one of the largest regions in terms of zinc and lead production. In 2023, It ranked 11^th in the world and 4^th in Asia for zinc production.

Zinc is used as an important metal in the galvanizing industry, and lead is used in the battery and automotive industries. Most of the Zinc exports from Iran go to Turkey , India , and Ukraine.

Chromite

Iran is one of the largest countries in producing chromite. The export of industrial raw materials from Iran, especially chromic export, plays a significant role in Iran’s economy. Chromite is an important raw material for different industries, specially in stainless steel production.

The Asian region is the major market for Iranian chromite. China is the top importer of Iran’s chromite because it is the largest producer of steel in the world. Nearly 99% of Iran’s chromite is exported to China. India is also the other importer for Iranian chromite ore due to its growing steel industry.

In addition to these countries, Iran’s chromite is exported to Turkey, Oman, Turkmenistan, Japan, Spain, Indonesia, Malaysia, Singapore, Philippines, Hong Kong, Pakistan, Sri Lanka, Egypt, Georgia, and Armenia.

Bitumen and Gilsonite

Bitumen and gilsonite are the other top Iran’s exported raw materials. The export of iran’s bitumen is very profitable due to its high quality and affordable price. Bitumen and gilsonite are widely used in the oil drilling industry, construction, and insulation.

Despite Iran’s sanction, The global demand for Iranian bitumen is high. Iraq and Afghanistan are two main buyers of Iran bitumen. In addition to Asian customers, bitumen exports to European and American countries are also boosting.

Silica Sand and Industrial Salts

Iran possesses the vast deposits and high quality of silica and rock salt. Moreover, Iran is equipped with the most advanced devices and technology for processing silica. This makes Iran an ideal option for purchasing silica.

Silica sand is one of the most widely used Iranian minerals. E xported silica is used in different industry due to tis high purity, such as the production of glass, ceramics, concrete, bricks, and tile adhesive treatment.

Almost all countries require silica sand and industrial salts for their industrial projects. China, Iraq, Afghanistan, Turkey, Qatar, and Oman are the major buyers of Iranian silica sand and industrial salts.

PITCO Shanghai: Your export facilitator

Parsian International Trading (Shanghai) Co., Ltd. (PITCO Shanghai), with 14 years of experience in international trade, are ready to provide you with services. Our trading consultant services support you in all export and import stages, from getting permits to shipping.