TEHRAN - Iran has identified significant new reserves of gold ore totaling more than 61 million tons in the country’s east, state media reported Monday, a discovery that comes as officials in Tehran seek to fortify an Iranian economy buckled by years of international isolation.
The findings are located at the Shadan mine in South Khorasan province, already a key site for precious metals in the country. According to the Fars News Agency, citing local media, the discovery of a substantial new gold vein has been officially certified by Iran’s Ministry of Industry, Mine, and Trade, paving the way for a potential expansion of domestic production capabilities.
The newly confirmed reserves are categorized into two distinct types, presenting varied extraction challenges. The find includes approximately 7.95 million tons of oxidized gold ore, which is generally less costly and technically simpler to process. The bulk of the discovery, however, consists of 53.1 million tons of sulfidic gold ore, requiring more complex refining technologies.
While Tehran does not publicly disclose its total national gold reserves, available data indicates a strategic pivot toward accumulation in recent years.
Mohammad Reza Farzin, governor of the Central Bank of Iran, stated last September that the institution ranked among the top five global central banks in gold purchasing volume between 2023 and 2024. Another Central Bank official, Yekta Ashrafy, emphasized that bolstering gold holdings provides essential support for an economy heavily burdened by international sanctions.
Iran currently operates 15 gold mines, with the Zarshuran mine in the northwest being the largest.
The mining sector’s importance is magnified by the severe pressure facing the broader Iranian economy. Sanctions, primarily stemming from Western accusations regarding Tehran’s nuclear ambitions—charges Iran consistently denies—have choked off traditional financial avenues.
The economic crisis has been compounded recently following a 12-day conflict sparked by an unprecedented Israeli attack on Iran, which also saw U.S. involvement targeting nuclear facilities. In this volatile environment, gold has become a critical safe haven for ordinary Iranians watching their purchasing power erode due to runaway inflation and the persistent collapse of the national currency.
On Monday, the rial’s weakness was evident on the unofficial market, with tracking sites showing the U.S. dollar trading at approximately 1.17 million rials, and the euro reaching 1.36 million rials, reflecting the depth of the country’s monetary crisis.
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Infrastructure Investment Push: Following the certification of the new reserves at the Shadan mine, Iranian officials are reportedly drawing up plans for urgent infrastructure upgrades in South Khorasan province to facilitate the transport and processing of the new ore, despite difficulties in importing heavy mining machinery due to sanctions.
Currency Slide Continues: Market analysts indicate that despite the positive news regarding resource discoveries, pressure on the Iranian rial remains intense in unofficial trading, driven by continued geopolitical uncertainty in the region.
Focus on Domestic Processing: The Ministry of Industry has signaled an intent to prioritize domestic technological solutions for processing the more difficult sulfidic ore found at Shadan, aimed at reducing reliance on foreign technology that is currently restricted.
Frequently Asked Questions (FAQs)
Q: Did Iran find 61 million tons of pure gold?
A: No. The discovery is 61 million tons of gold ore. Ore is raw rock containing unprocessed metal. The amount of extractable pure gold will be a much smaller fraction of that total weight.
Q: Where is the new discovery located?
A: The new reserves were found at the existing Shadan mine, located in South Khorasan province in eastern Iran.
Q: Why is this discovery significant for Iran right now?
A: Iran’s economy is severely constricted by international sanctions. The Central Bank has been actively buying gold to bolster its reserves. Domestically, ordinary Iranians are turning to gold as a safe haven against high inflation and the collapsing value of the rial.
Q: What are the challenges in mining this new gold?
A: The majority of the discovery (53.1 million tons) is "sulfidic" gold ore. This type requires higher technology and more complex, expensive processing compared to the smaller amount of "oxidized" ore found.
Q: What is the current state of Iran's currency according to the article?
A: The currency is facing a deep crisis. On the unofficial market Monday, it cost approximately 1.17 million Iranian rials to buy one U.S. dollar.
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