TEHRAN, Feb. 7--Minister of Industries and Mines EsÕhaq Jahangiri said in the southeastern city of Zabol, Sistan-Baluchestan province, on Monday that the Khatami administration has tried to encourage private sector companies to participate actively in development projects in the deprived regions by offering greater incentives and facilities.
According to Fars news agency, the minister further said at a ceremony to launch construction works of Zabol Cement Factory, that the government presently offers tax exemptions and up to 50 percent lower rates for banking facilities rendered to private enterprises operating in deprives areas.
He further noted that the deprived province of Sistan-Baluchestan enjoys outstanding economic potential, particularly in mining industry, as it holds huge copper and gold deposits.
Jahangiri said the cement project in Zabol would help supply cement to regional markets, such as Iran and Afghanistan, adding that the project would come on stream within three years.
The Zabol project, once implemented, could produce a million tons of cement per annum and create direct jobs for 300 people. It would help create another 1,000 jobs indirectly.
Some 51 percent of investments has been committed by private companies involved in the giant project.

TEHRAN, Feb. 7--A senior Ministry of Economic Affairs and Finance official here on Monday rejected reports the insurance industry has remained sluggish in recent years, stressing that the industry has recorded a successful performance during the Third Five-Year Development Plan (2000-2005).
Seyyed Hamid Pour-Mohammadi, deputy minister for state companies affairs, told ISNA that the insurance industryÕs earnings have jumped from four trillion rials to 12.7 trillion rials in recent years.
ÒThe payment of compensation by insurance firms has also increased from 2.4 trillion rials to 7.6 trillion rials,Ó he said, stressing that the insurance industry has experienced a favorable growth in recent years following the establishment of private insurance firms.
He said private insurance companies have helped boost competition in the sector, calling for greater private sector participation in insurance industry.
Article 44 of the Constitution has been the main obstacle to privatization in recent years as it bans major industries, banks and insurances from offering their shares on the stock market.
However, the State Expediency Council overturned the key article last year to allow large-scale privatizations in a bid to overhaul the state-controlled economy. The council gave the green light to privatization in downstream oil and gas sectors, mines, banking, insurance, telecommunications, railways, roads, airlines and shipping.
Upstream oil and gas and the airwaves for telecommunications will, however, remain under state control.

TEHRAN, Feb. 7--Turkish Ambassador to Tehran Bozkurt Aran here on Monday called for extensive negotiations between Ankara and Tehran on gas exports to Europe, stressing that Turkey sees Iran as the most cost-effective option available.
The envoy told ILNA that Europe is seeking to diversify its sources of energy supplies, adding that Russia is currently the main supplier of natural gas to the continent.
ÒTurkey believes that Iran is the most economical source of gas supply to Europe as there is no major (technical) problem with the possible transfer of gas from Iran to Europe via Turkey,Ó he said, adding, however, that the two sides would need to take into account all aspects of implementing such a huge project in their talks.
Aran said Ankara must make sure the possible multibillion dollar project would not face a decline in demand for Iranian gas, if it were to allow the hydrocarbon resource-rich country use its territory to export natural gas to Europe.
He said Tehran and Ankara have not yet entered into official talks on gas exports to Europe, stressing that Iran plays a vital role in supplying gas to Turkey.
ÒWe are planning to increase IranÕs share of energy supplies in Turkey,Ó he said, adding that Ankara purchases huge amounts of gas from Russia per annum.
The Turkish ambassadorÕs calls for greater energy cooperation come amid speculations Iran would cancel an agreement with Turkish company TAV to develop the giant Imam Khomeini International Airport.
Aran said earlier the Islamic Republic can forget about investment by the Turkish company after paying some $15 million in compensation.

TEHRAN, Feb. 7--A senior Interior Ministry official said border malls would continue their operations despite repeated calls by the Commerce Ministry and the Iran Customs Administration for putting an end to border trade.
According to ISNA, Ali Mohaqqar, deputy interior minister for international affairs, told reporters that immediate closure of border malls would not be in the best interests of the country, adding that it would be practical to cut down their number but not to do away with them altogether.
ÒThere are several border malls with very low profits for the country,Ó he said, adding that long-term investments and creation of free trade zones in border areas could help make border trade a far more profitable business.
Mohaqqar said smuggling of goods via border areas would decline only when the locals have access to other sources of income.
ÒIn our opinion, many trading activities conducted by border residents are tantamount to smuggling, whereas they themselves do not believe so,Ó he said, adding that the upsurge in demand for certain products is responsible for the increase in their smuggling into the country.
He said the border dwellers live on smuggling, adding that there are plans for organizing economic activities in border areas in partnership with the Management and Planning Organization.
The official said 43 border malls are currently in operation nationwide.

More than 70 out of 152 reservoir dams built in the post-Islamic Revolution era have become operational.

ZAHEDAN, Sistan-Baluchestan, Feb.7--Deputy Energy Minister Reza Amrollahi said here Sunday that Iran ranks third in the world in terms of dam building, according to an IRNA report.
Talking to reporters here on Sunday, Amrollahi said Iran will host the international conference on big dams next year.
He said that 72 out of 152 reservoir dams built in the post-Islamic Revolution era have become operational.
He said that 175 dam projects have been taken up for implementation over the past eight years, of which 49 have been put into operation.
The official said more than 1,100,000 hectares of farmlands have been irrigated or drained in the post-Islamic Revolution era.

TEHRAN, Feb. 7--Iranian ambassador to Syria, Mohammad Reza Baqeri, conferred with head of Aleppo Chamber of Commerce, Mohammad Saleh Al-Mallah late Sunday to discuss ways of expanding bilateral trade.
According to IRNA, Baqeri toured Aleppo, some 355 kilometers north of Damascus, on the occasion of the Ten-Day Dawn (Jan. 31-Feb. 11) marking the 26th anniversary of the victory of the Islamic Revolution. Aleppo, which is known as SyriaÕs trade hub, is its second largest city with a population of 1.7 million.
During the visit, Al-Mallah described the progress made in the economic zone as important and expressed hope that commercial ties between Tehran and Damascus can keep up with political relations.
Referring to the consistent approach of the two countries to regional and international economic developments, Al-Mallah pointed out that the determination of political leaders is a source of encouragement for Syrian tradespersons to redouble efforts to upgrade cooperation with their Iranian counterparts.
He voiced satisfaction that Iran-made industrial products and goods are abundant in Syrian markets and called for organizing specialized exhibitions as a strategy to improve bilateral transactions.
Based on the latest figures, trade between two countries exceeds $100 million. Some 250,000 Iranian pilgrims visit holy shrines in Syria annually. The accommodation and food cost for every pilgrim is estimated about $300 per week.
A group of entrepreneurs from Aleppo, who was also attended the meeting, called for signing customs agreement.
Baqeri, for his part, welcomed SyriaÕs keenness to expand trade cooperation with Iran. He added that the ground is prepared for swapping technical and engineering know-how.
A number of projects are currently being operated by Iranian investors in Syria, at a cost of $900 million, the ambassador said. The most important of these projects are the construction of a number of grain silos, renovation of a power plant in Banias Port, building a glass company in northern Syria, launching production line for Samand car and building a cement factory in Hama.
Referring to the Joint Economic Commission Meeting, which is due to be held in Tehran mid-February, Baqeri hoped that related ministries would reach consensus on trade agreements.

Some 200,000 tons of steel were exported during March-September 2003.

AHVAZ, Khuzestan, Feb.7--Managing Director of Iran National Steel Industrial Group said here Sunday that once the 430,000-ton capacity steel ingot plant becomes operational, the country will save $140 million in hard currency.
Ahmad Aminifar told IRNA that the domestic needs of the plants affiliated to the group is also valued at approximately $140 million.
"The plant is currently under-construction and over $50 million has been spent on facilities and equipment."
Also, the national currency investment on the plant is estimated to top 20 billion rials. On completion, the plant will provide 190 direct and 3,800 indirect job opportunities, Aminifar added.
The project is estimated to be completed in the first half of the next Iranian year (starts March 21), he said.
A senior steel industry official said last month that steel exports in the first half of the current Iranian year (started March 20, 2004) stood at 500,000 tons, showing an increase of 40 percent compared to the amount for the same period last year.
Taqi Bahrami, head of Iran Steel Producers Association, said that 200,000 tons of steel were exported during March-September 2003.
He disclosed that the public will be able to purchase up to five tons of steel directly from the Tehran Metal Exchange (TME) in the near future.
Iran ranks 21st among world steel producers.