Iran has announced the discovery of a major gold deposit in one of the country’s largest mines, local media reported on Monday.
The new vein structure was identified at the private Shadan gold mine in the eastern province of South Khorasan, which Fars news agency described as “one of the most important in the country.”
The agency noted that the new reserves have been formally validated by the Ministry of Industry, Mines and Commerce.
According to the report, “The proven reserves of the Shadan gold mine in the east of the country have seen a significant increase following the discovery of a vast vein of gold.”
It said the newly discovered vein contains “7.95 million tonnes of oxidized gold ore and 53.1 million tonnes of sulphide gold ore”. Oxide ore is usually easier and more profitable to mine.
Iran has not publicly revealed the exact size of its national gold reserves, but maintains that its purchases have increased significantly in recent years.
In September, Central Bank Governor Mohammadreza Farzin said the bank was among the world’s top five gold-buying central banks in 2023-2024, according to ISNA news agency.
Local media also quoted central bank official Yekta Ashrafi as saying that increasing gold reserves would help strengthen the economy as Iran continues to face international sanctions. The country currently operates 15 gold mines, including the largest, the Zarshouran mine in the northwest.
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Iran’s economy has long been hit by sanctions imposed after the United States and Western nations accused Tehran of trying to weaponize its nuclear program, a claim the government denies.
The situation has worsened since the 12-day war triggered by Israel’s unprecedented attack on Iran, during which the United States briefly joined Israel in attacking Iranian nuclear facilities.
Gold remains a safe asset for many Iranians facing weakened purchasing power, soaring inflation and the persistent depreciation of the rial against the dollar. On Monday, the US dollar was trading at around 1.17 million rials in the informal market, while the euro stood at around 1.36 million rials, according to exchange rate tracking platforms Bonbast and AlanChand.
(AFP)
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