Iran says China-funded steel projects delayed by banking issues
(Minews) - Seven major steel projects in Iran that are dependent on billions of euros of investment from China have been delayed by financing issues, Iranian state-owned mines and metal holding company IMIDRO said on Tuesday.
The Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) said it was working with China Metallurgical Group Corp (MCC), itself a state-owned enterprise, to resolve the issues which involve the Chinese central bank.
Local press reports in Iran said the MCC Group has secured 1.8 billion euros of funding for the projects. This could not be independently verified by Reuters.
Iran plans to boost steel output to 55 million tonnes a year by 2025 in a bid to replace at least a small part of the revenue lost to sanctions on oil sales, but industry experts say its target is ambitious.
It hopes to export 10 million tonnes a year by 2025, up from an average of 1.35 million tonnes a year in 2011 and 2012. Iran was never barred from selling steel under U.S. and EU sanctions over its disputed nuclear programme.
But the Islamic Republic is subject to financial restrictions banning banks from processing dollar payments for trade with Tehran. IMIDRO did not say if the financing problems with MCC were linked to sanctions.
The state-owned group is hosting an international summit on Iran's mine and mining industries in a bid to boost foreign investment in the sector and capitalise on the current thaw in relations with the West.
Publish date : Wednesday 17 December 2014 20:30
Story Code: 18017
