Iran Launches Gold Processing Plant

Iran has said that they have officially opened the doors of a new gold processing plant, and according to reports, it is one of the largest of its kind in the Middle East. RT reports that Iran aims to increase their production of precious metals — potentially doubling it — that will allow them to annually mine and produce about three tons of gold. Iran already mines gold, silver, and mercury at a domestic profit of millions of dollars a year.

Significant gold production is more than just a way for Iran to make even more cash, though. It’s part and parcel of the country’s so-called “economy of resistance” that is linked to their foreign policy. The goal of the economy of resistance is to counter the impact of sanctions put in place on Iran by other countries over Tehran’s highly controversial nuclear program.

The sanctions put in place on Iran in 2012 are over claims by the west that their nuclear program is in fact being used to develop atomic weapons. Iran has routinely denied that the program is for anything but peaceful purposes and for use at the civilian, not military, level. In order for sanctions to be lifted, one prerequisite is that Iran put certain restrictions on the program.

Iran is in the process of negotiating a final agreement with world powers on its atomic program. After a year of diplomatic negotiations, Iran is up against a deadline on November 24 to come to an agreement about the program.

In the meantime, RT, citing reports from Iranian state TV, reports that Iran’s new gold processing facility is situated near one of Iran’s most robust mines in the northwest part of the country. There are rumored to be about 20 million tons of gold reserves in that particular mine.

The Associated Press has also reported that Iran is boosting its gold processing capability with the new plant. At the inauguration celebration of the plant, Iran’s First Vice President Ishaq Jahangiri was part of the crowd in the northwestern town of Takab, where the plant is located.

The gold mine, known as Zarshouran, is also going to put out about 2.5 tons of silver and 1 ton of mercury every year.

The new plant is valued at more than $31 million. As part of Iran’s “economy of resistance,” the plant will be part of the country’s policy to strengthen the domestic economy by maximally exploiting domestic resources. There is also a push to promote the knowledge-based economy that includes innovations.

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