Iran (IMNA) - Mineral resources alone contribute about 5% to this total, valued at $1.4 trillion, assuming a 50% recovery rate during extraction and processing. Throughout its history, Iran has relied heavily on minerals such as copper, iron, zinc, turquoise, and silver, which have been integral to its civilization. However, the discovery of oil in the early 20th century shifted the focus to hydrocarbon reserves as the main source of income, diminishing the importance of mineral resources.
Currently, the mining sector represents around 2.5% of Iran's GDP and provides employment for 1% of the workforce. Despite being among the top ten mineral-rich countries globally with about 15,000 mining sites, Iran holds the sixth-largest zinc reserves, seventh-largest copper reserves, ninth-largest iron ore reserves, and fifth-largest gypsum and barite reserves. Additionally, it possesses 3% of the world's total lead and zinc reserves along with considerable manganese and coal deposits.
These estimates are primarily based on surface mining operations; Iran has yet to explore deep underground mining, which offers a lower environmental impact compared to shallow methods. The extractives sector is increasingly viewed as vital for transitioning from traditional energy sources like coal and oil to renewable alternatives.
The global demand for lithium-ion batteries—crucial for electric vehicles (EVs) and portable electronics—has surged, increasing the significance of minerals such as lithium, cobalt, nickel, graphite, manganese, rare earths, copper, and aluminum. Given that these minerals are concentrated in a few countries, they play a strategic role in the global supply chain. Consequently, new extraction projects are anticipated to rise due to mineral nationalism amid supply security concerns.
Geopolitical tensions between the US and China pose challenges to the EV revolution. The Democratic Republic of the Congo (DRC), home to around half of the world's cobalt reserves alongside copper deposits, is experiencing conflict as government forces clash with Tutsi-led M23 rebels backed by Rwanda in a region rich in critical minerals.
In South America, Bolivia leads in lithium resources followed by Argentina and Chile within the "Lithium Triangle," where a rush for this valuable resource is underway. While Iran does not directly participate in the global supply chain for EV battery minerals, it has substantial opportunities due to its other mineral resources like nickel and copper.
Iran's strategic location as a bridge between Asia and Europe positions it as a vital transportation route within this mineral supply chain. Policymakers in Iran are encouraged to analyze ongoing geopolitical dynamics to identify optimal paths for leveraging these opportunities effectively.
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