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Locals Are Losers In Iran's Gold Fortune

Iran International Newsroom
Aug 3, 2023, 19:21 GMT+1Updated: 17:37 GMT+1
A worker at a gold mine in Iran
A worker at a gold mine in Iran

China, Russia and the Revolutionary Guards are exploiting gold mines in Iran while locals bear the brunt of their environmental hazards and discriminatory policies.

Earlier this week, the IRGC surrounded poverty-stricken Agh-Darreh village in Takab in West Azarbaijan province after clashes broke out between security forces and residents who were protesting a lack of job opportunities in a nearby gold mine. Over 50 Kurdish citizens were arrested and more than 10 people sustained injuries. 

Takab is the nearest town to two of Iran’s largest gold mines, namely Agh-Darreh and Zarshouran, which account for 40 percent of the total gold production of Iran. Yet, the town – which also has about 58 other mines -- is among the poorest in Iran, along with numerous other towns located near such huge sources of wealth. 

According to Iran International's Mojtaba Pourmohsen, during the past decade, the contracting company in charge of Agh-Darreh mine has laid off hundreds of seasonal workers, leading to tensions between the employees and security forces. In one case a lawsuit was filed against the mine workers and 17 of them were publicly flogged.

A view from Zarshouran gold mine in in West Azarbaijan province (2016)
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A view from Zarshouran gold mine in in West Azarbaijan province

Agh-Darreh mine is owned by Pouya Zarkan mining company, one of the biggest mining cartels of Iran, founded by regime insiders Ali Kolahdouz Esfahani and Majid Ahmadi-Niri who have made millions off the gold while locals continue to live below the poverty line.

Kolahdouz, who was a deputy at Iran’s Ministry of Industries and Mines under former president Akbar Hashemi Rafsanjani, first transferred the mine’s exploitation rights to a Canadian shell company about 10 years ago. The mine was then transferred several times and finally ended up at Pouya Zarkan company. Although the shares of Pouya Zarkan Company were divided among several other companies, the new shareholders are companies belonging to the families of Ahmadi-Niri and Kolahdouz. 

The current owners of the mine, which produces about one ton of gold annually, are members of the two families who currently reside in Canada, including Ali Kolahdouz himself, who lives in a mansion there. Majid Ahmadi-Niri, who was an IRGC member, died two years ago in Vancouver, leaving a huge inheritance that is the center of a legal dispute at the Supreme Court of British Columbia between Ahmadi-Niri's wife, Mojgan Shakeri-Saleh, and their two sons, Mohammad Amin and Mahdiar. Mahdiar has been featured in Dutch automobile news website Autoblog.nl for his large collection of luxury cars.

According to an investigation by the parliament, the Pouya Zarkan Company has offered hundreds of thousands of dollars in bribes to authorities in Takab and West Azarbaijan province to ignore the necessary environmental safeguards in the mines. The tailings dam of Zarshouran mine, located 35 kilometers from Takab, has resulted in cyanide leakage, posing a serious threat to the lives of the region's wildlife.

The grim situation is not limited to Takab as most of the Iranian cities near the country’s greatest mines are suffering from high unemployment rates and lack of infrastructure in addition to industrial pollution. Those in charge of the mines barely employ the locals, and the waste from these mines is so poorly managed that it has led to serious health risks for the people and their livestock. 

In addition to regime insiders and IRGC members, China and Russia are also making the best use of Iran’s gold mines at the expense of the locals. The regime has reportedly handed over gold mines in seven provinces as part of the 25-year cooperation agreement with Beijing and a 20-year deal with Moscow.

Mazraeh-Shadi mine in Varzaqan, in East Azarbaijan province, estimated to have two million tons of gold ore, was handed over to a Chinese company. This company even brings its own miners from China and has only employed 20 local workers from Varzaqan. Andaryan gold mine, also near Varzaqan, with 30 million tons of gold ore, was also handed over to a Russian company.

Losing sovereignty over its rich natural resources to foreign powers, will no doubt cost the Iranian public greatly. Handing over the country's mines breaks even the regime's own constitution but once again, the authorities bend the rules around the priorities they deem greater than the needs of its own people.

Germany-based journalist Mehdi Mahdavi-Azad told Iran International, “Such audacity is not even seen in colonial contracts”.

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Taliban Says Over 40,000 Afghan Refugees Deported From Iran

Aug 3, 2023, 18:49 GMT+1

More than 40,000 Afghan refugees were deported from Iran in the last month, according to the Taliban's Ministry of Refugees.

Acting Minister for Refugees and Repatriation Abdul Rahman Rashid, stated that approximately 46,000 people returned voluntarily, while around 43,000 others were deported from Iran due to lacking legal documents for residence.

Less than three weeks ago, a military official in Sistan and Baluchestan province reported the return of thousands of Afghan refugees in just one day, solely through one Iranian border crossing.Parviz Ghasemzadeh, the commander of the Zabul border regiment, claimed that 4,767 Afghan citizens were arrested for reasons such as illegal entry, illegal stay, or expired passports, and were transferred to Afghanistan through the Milak border crossing in the north of Sistan and Baluchestan province.

According to the latest figures communicated by the Government of Iran to the UN's refugee commission (UNHCR), 762,000 refugees live in Iran, of which 750,000 are Afghans and 12,000 are Iraqis. Around 586,000 Afghan passport holders with Iranian visas also live in Iran.

The UNHCR claims that in 2022, the government of Iran undertook a headcount of all undocumented Afghan nationals in the country, including those who newly arrived following the Taliban takeover in 2021, through which some 2.6 million Afghans were registered.

According to official figures from Iran, 500,000 undocumented Afghans did not participate in the headcount and it is estimated that since the US withdrawal in August 2021, a total of 1,000,000 Afghans have fled to the country.

China, Russia Avoid Investment In Iran Due To Sanctions

Aug 3, 2023, 16:15 GMT+1

The Iranian Oil, Gas, and Petrochemical Products Exporters Union has revealed that China and Russia avoid business in Iran due to international sanctions.

In a recent interview with Iran Watcher, Hamid Hosseini said major Chinese and Russian companies, renowned for their international presence, have refrained from engaging in business with Iran due to the prevailing sanctions on the country’s oil industry.

This is despite Iran's 25-year contract with China, signed on March 27, 2021, in a ceremony at the Iranian Foreign Ministry in Tehran and a proposed 20-year economic trade deal with Russia which is still in negotiations.

Initially proposed by Iran's Supreme Leader Ali Khamenei during President Xi's 2016 visit to Tehran, the China agreement has remained a contentious issue within the country, with details largely undisclosed to the public.

Hosseini expressed that the sanctions have rendered major Chinese state-owned companies unable to collaborate with Iran, despite the contract.

While Iran has indicated its intention to strengthen trade relations with Asian countries, especially China, as talks with the United States and Europe over Tehran's nuclear program have yet to yield a resolution, China has been cautious about challenging existing US sanctions. Beijing's cultivation of closer ties with the Persian Gulf Arab countries and Israel has further complicated the situation.

Many Iranians have voiced their discontent with the cooperation agreement with China and the proposed 20-year deal with Russia, expressing concerns that the agreements may compromise the nation's interests.

However, dealings with Russia continue, not least in the field of drones and ammunition, with the two sanctioned nations finding ways to do business around global sanctions. Only in June, Russia's TASS news agency claimed that a free trade zone agreement between Iran, Russia and several countries in the vast Eurasian region spreading from the borders of Eastern Europe to Western China is possible by the end of the year.

Bread Prices Jump In Iran As Government Subsidies Stay Flat

Aug 3, 2023, 15:20 GMT+1
•
Maryam Sinaiee

Iran's state television has confirmed an increase in 13 provinces in the price of bread, the main staple in Iranians’ diet, after weeks of contradictory statements. 

In the past few weeks various government officials had repeatedly denied media reports about the government’s intention to increase the price of bread, supposedly because following subsidy reforms in May 2022, former Minister of Economy Ehsan Khandouzi had stated that an increase in the price of bread was “the President’s redline” and other officials had repeated it.

The increase in the price of bread has now officially been announced in several provinces including Khorasan-e Razavi (Razavi Khorasan), South Khorasan, Markazi (Central), Qazvin and Fars. 

Coming months after large anti-government protests, the higher bread prices carry the danger of renewed unrest.

Last week Iranian media reported an increase of around 40 percent in the price of bread, without any prior announcement, in the northeastern province of Khorasan-e Razavi, followed by several other provinces. 

According to Ahmadreza Keshtgar, Chairman of Bakers’ Union in Mashhad, capital of Khorasan-e Razavi, the union had proposed an increase of 110 to 115 percent but the province governor’s office did not agree to raise the prices more than 40 percent. 

A barbari bakery in Iran   (file photo)
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A barbari bakery in Iran

Reza Ramezani, deputy governor-general of Mashhad, told Khorasan newspaper on July 26 that the plan to increase the price of bread had been in the pipeline for a while because bakers are paying higher for labor, rents, tax, and utilities. 

Bakers say despite the lower cost of subsidized flour, other production costs (labor, other ingredients including yeast and oil) have increased so much in the past year and their sales have dropped so that they are still not able to make a profit.

Earlier in June the Bakers’ Union had revealed that subsidized flour allocations to some bakeries had dropped by more than half their quota. 

The traditional semi-flat bread called barbari, for instance, the unbaked loaf of which is supposed to weigh 400 grams, sold at 8,500 rials ($0.17) before the increase but has now risen to 12,000 rials. ($0.24). Although this might seem cheap by world standards, the average salary in Iran is about $200 a month and people’s purchasing power is severely curtailed after the currency rial fell to historic lows last year.

The subsidy was introduced in April 2018 by the government of President Hassan Rouhani when former US president Donald Trump signaled his intention to withdraw from the Obama-era nuclear agreement with Iran known as the Joint Comprehensive Plan of Action (JCPOA), and Iran’s national currency began to nosedive. Prices for imported goods skyrocketed and the government decided to provide cheap dollars to importers of essential goods including flour to keep prices low. 

On May 1, 2022, the parliament voted to allow the government to scrape an annual $10-14 billion subsidy for essential food and medicine despite warnings of higher inflation, which already stood at around 40 percent, and hardship for the most vulnerable. This led to a ten-fold increase in the price of flour. 

The government of President Ebrahim Raisi then introduced a “smart plan” to continue the bread subsidy and issued digital cards that had to be used at the time of purchase, arguing that the plan would prevent the smuggling of subsidized flour and bread to neighboring countries where they sold at much higher prices. 

Bakers complain that the ration card system is causing them many problems including disruption of trade when the internet is down. They also say the government does not always reimburse them for its share of the price of bread purchased by customers (subsidy) on time. 

The massive jump in the price of flour after removal of its subsidies has affected the price of a wide range of other goods including pasta, biscuits, and cakes. Meanwhile, non-traditional loaf breads are available at in other bakeries at unsubsidized prices.


Regime Blames Protests For Iran's Economic Woes

Aug 3, 2023, 14:17 GMT+1

The Iranian regime has blamed the country's economic woes on the Woman, Life, Freedom movement and the nationwide demonstrations since September.

Iranian government spokesperson Ali Bahadori Jahromi alleged that the protests, in the wake of the death in morality police custody of Mahsa Amini, led to an increase in the exchange rate and capital flight, ignoring the likes of global sanctions for its nuclear program, which have only worsened since it was revealed the regime has been supplying drones to Russia in its invasion of Ukraine.

Jahromi simply blamed the uprising on international influence, which he called a “conspiracy” by the United States, one of the country's arch-enemies. Jahromi's remarks come as the rial has experienced a tenfold drop in value over the past five years, with the economic situation further deteriorating before the protests occurred.

The rial has proven to be highly sensitive to news surrounding the nuclear talks which recently saw a closed-door revival with the Biden administration's attempts to bring Iran back to the table. The currency began to steeply fall in early 2018, prompted by former US president Donald Trump's indications of withdrawing from the Obama-era nuclear accord, known as the JCPOA.

The impasse in the talks has further strained Iran's economic situation, with its crude oil exports remaining sanctioned by the US, and its banking system isolated from the international financial system.

In a bid to disguise the dire situation where a huge portion of Iranians are now living below the poverty line while money is still funnelled across the region to the regime's military proxies, Jahromi made the unsubstantiated claim that "all indicators show we are moving towards reducing the inflation rate".

He meanwhile mockingly urged people "not to get the wrong information from Ayatollah Google", suggesting the government spokespeople are the only reliable sources to trust.

IRGC Warns US To Leave Persian Gulf Region

Aug 3, 2023, 13:23 GMT+1

Amid continuing tensions in the Persian Gulf, the IRGC commander reiterated Tehran's demand for the United States to leave the region.

Gen. Hossein Salami claimed the countries of the region are capable of establishing the security of the Persian Gulf.

Tensions in the Persian Gulf heightened on Wednesday as the Islamic Revolutionary Guard Corps (IRGC) initiated unexpected military exercises on three Persian Gulf Islands disputed by the United Arab Emirates.

Salami speaking about security in the region stated, "The regional states are capable of establishing the security of the Persian Gulf based on Islamic brotherhood and loyalty, without the need for the presence of US or its allies."

The military exercise, conducted by the IRGC Navy, saw the participation of operational combat units, boats, missiles, drones, electronic warfare, and rapid response forces.

During the exercise, the IRGC unveiled two "advanced weapons systems" - the Qadir cruise missile and the Fath 360 ballistic missile, both claimed to be equipped with artificial intelligence capabilities. Unmanned aerial vehicles (UAVs) allegedly with AI capacity were also deployed, successfully destroying predetermined targets.

The operationalization and equipping of new IRGC boats with missiles, with a range of 600 km, was another part of the exercise.

The IRGC's military maneuvers were primarily centered around Abu Musa Island, with additional troop landings on the Greater Tunb Island, the islands disputed by the UAE.

The United States has boosted its military presence in the region following Iran's attempts to interfere with maritime traffic in the Strait of Hormuz and its surrounding waters.

In response to the US deployment, Salami issued a warning, stating, "Our nation is vigilant, and it gives harsh responses to all threats, complicated seditions, secret scenarios, and hostilities."