Iran’s Largest Gold Mine Sees Output Boost: Positive Growth in Production

The Zarshouran Gold Mine, a key player in Iran’s mining sector, has recently reported an impressive increase in its annual production. According to a statement on Iran’s stock market website, the mine’s output rose to 0.963 metric tons (mt) for the calendar year ending on March 19, 2024. This increase of 0.023 mt has been highlighted in a Saturday report by the Fars news agency, showcasing the mine’s growing contribution to the country’s gold production.

In the same report, the Zarshouran Gold Mine revealed that it has incurred production costs of 4.31 million rials (approximately $7 based on average annual prices) for each gram of gold produced during the past year. However, the mine did not provide detailed information about its current gold reserves, leaving some questions unanswered.

Located in Iran’s West Azarbaijan province, Zarshouran is owned by the state-run metals and mining company IMIDRO. Notably, the mine announced in November of the previous year that its proven gold ore deposits had significantly increased from 27 million mt to 43 million mt, indicating a robust future for its operations.

In contrast to Zarshouran’s positive performance, the Mouteh Gold Mine, recognized as Iran’s second-largest gold producer in the central province of Isfahan, reported a decline in its production. According to its statement, Mouteh’s output dropped by 0.19 mt, finishing at 0.246 mt by the end of March 2024. The report did not specify the reasons behind this decline, but it did indicate that Mouteh currently possesses 1.44 mt of gold.

Iran’s total annual gold production stands at approximately 1.2 mt, largely catering to domestic jewelry manufacturers. As gold prices soar, experts believe that Iranian gold miners are poised to attract substantial investments. This optimism is fueled by record-high gold prices, which have enhanced profit forecasts and increased cash flows into the mining sector.

On a noteworthy note, spot gold prices recently climbed by 0.6%, reaching $3,074.43 per ounce on Friday. This surge followed the gold hitting its eighteenth record high this year at $3,086.70 earlier in the day. In Iran, bullion prices closed at 82,866,200 rials per gram on Saturday, although trading was somewhat subdued due to the holidays celebrating the new Persian Year.

• Zarshouran Gold Mine: Increased production to 0.963 mt.
• Production cost: 4.31 million rials per gram.
• Proven gold ore deposits: Increased from 27 million mt to 43 million mt.
• Mouteh Gold Mine: Production decreased to 0.246 mt.
• Current gold reserves: Mouteh holds 1.44 mt of gold.
• Annual gold production in Iran: Approximately 1.2 mt.
• Spot gold price: Reached $3,074.43 per ounce.
• Gold price in Iran: Closed at 82,866,200 rials per gram.

The mining industry in Iran is at a pivotal moment, with opportunities for growth and development. As the country continues to enhance its gold production capabilities, it’s imperative for investors and stakeholders to keep a close eye on the evolving landscape of the mining sector. With rising gold prices and increasing reserves, the future of gold mining in Iran looks promising.