Iran inks $1 billion deal to develop Mehdiabad zinc mine

BEIJING (Asian Metal) 15 Mar 17 - Iran has inked a $1 billion deal with private investors to develop Mehdiabad, one of the world's largest zinc mines, which is expected to come on stream in the next four years and produce 800,000tpy of zinc concentrate.

The state-owned Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) signed the contract with a consortium of six private companies, led by Iran's Mobin Mining and Construction Company.

According to media reports, Mehdiabad has zinc ore grades of between 2 to 4 percent, meaning 800,000tpy of zinc concentrate would add between 16,000 to 32,000 tonnes of refined zinc to the 13.7 million tonne per year global market.

IMIDRO noted that Mobin was talking to international mining firms in Switzerland and Spain about joint ventures to develop the Mehdiabad mine.

According to IMIDRO, Mehdiabad, a zinc, lead and silver deposit, has 154 million tonnes of proven reserves, and the reserves are expected to reach 700 million once exploration is completed.

The private consortium will run the mine for 25 years, though their contract could be extended.

Additionally, IMIDRO stated that on top of the targeted 800,000 tonnes of zinc concentrate, Mehdiabad is also expected to see an annual output of 80,000 tonnes of lead and silver concentrate.

.Asian Metal Copyright7 million tonne per year global market.Asian Metal Copyright