Coal Price will Increase for 20 percent

Mining News -“Increasing capacity in this field of coal is a long term process and for increasing the capacity for 20 percent, 2 years is required therefore, in the first two months of 1397 (Iranian calendar) the process is like before. While 1.5M tons of coal concentrate produced last year so it seems producers could reach this number.” Saeed Samadi told Madan News reporter.

“The country needs 3.5M tons coal a year and most of this requirement is supply by importation. However, the ministry of Industry, Mine and Trade promised to give facilities to coal producers in order to improve the production.” He added. “Estimation for coal security is about 90 Billion IRRs but the investigation is continuing. Facilities are giving to the producers in the fields of mines safety, 4 provinces of safety and rescue and infrastructures development.”

“By the effects of Trump’s decision and possibility of sanctions return so local producers are responsible for supplying local requirements. While Iran has a rich reserves of mines then we could supply local need with a proper plan.” He said.

“Recent exchange rate fulucation is increasing the public inflation and this will affect mines and goods very soon and coal mines aren’t an exception. These mines are still using pre-purchased equipment and, in other words, there is no tsunami of inflation to the shore of coal.” He continued. “20% increase in manpower costs which is the most important part of coal mines, we will certainly see 20% increase in the price of coal. Of course, accurate assessments should be made and all the factors should be taken into account for this increase, which is why the price increase should be finalized at the coal support strategic committee held by the Minister of Industry, Mine and Trade.”