December 21, 2018
The government says it is stepping up production of gold to cushion the economy against the impact of US sanctions.
The public, frightened by the collapsing rial, has engaged in panic buying of gold in recent months, and the government would prefer to see that gold supplied from inside the country.
But the amount of gold that can be expected to be mined is likely much too small to have any real economic impact.
The Iranian Mines and Mining Industries Development and Renovation Organization (IMMIDRO) says it has signed a memorandum of understanding with a private company, which was not named, to resume production at six small gold and copper mines in the provinces of East Azerbaijan, West Azerbaijan, Esfahan and South Khorasan.
The World Gold Council says demand for gold is flat around the world, but has shot up in Iran this year. It said sales in Iran totaled 15.2 tons in the second quarter of the Western year.
The Financial Tribune says Iran’s gold output this year is about 5.8 million tons. At the recent price of about $40,000 a kilo, that would value total production this year at around $230 million, not enough to make much of a difference economically.
