TEHRAN, Nov. 27--Commerce Minister Seyyed Massoud Mirkazemi said the government is planning to launch a program next year to pinpoint the factors involved in inflation and high manufacturing costs, stressing that relevant studies have already begun, ISNA reported.
Speaking at his third press conference since taking office in August 2005, the minister blamed imbalances between supply and demand as well as the injection of liquidity into the market for the high inflation rate.
He said that the government is also planning to make the subsidy system targeted, which means state subsidies will be only allocated to certain goods while financial support for the remaining will be withdrawn.
“However, we will be trying to formulate subsidy policies in a way that they do not affect production costs (negatively),“ he said, adding that measures aimed at supporting the manufacturing sector, farmers and workers should not lead to price hikes.
He said the average import tariff rates stand at 10.7 percent, stressing that if the figure reaches 16 percent, prices of all goods made from imported raw materials will be affected.
The minister said greater cooperation between the government and the parliament is vital for controlling fluctuations.
Asked whether cellphone import tariffs would be slashed following the apparent failure of plans to manufacture handsets, the minister said the tariff will remain the same even if production does not begin soon.
Mirkazemi said the unanimous view is that cellphones should be produced domestically.
To a question whether the ministry has any plans to improve the quality and raise prices of bread, he said a decision on bread would not be possible as long as a decision on wheat and flour remains on hold.
He rejected reports that the United States is exerting pressure on Iran’s economy via the neighboring Persian Gulf sheikhdom of Dubai, United Arab Emirates, stressing that since UAE is a member of World Trade Organization (WTO), it offers goods at low tariffs which is why many Iranian merchants conduct business with the emirate.

TEHRAN, Nov. 27--A senior lawmaker here Monday announced that lack of funds and failure to set the objectives for the development of free trade zones are the main impediments to the progress of Iranian zones.
Iraj Nadimi, who also heads the Free Trade Zones Research and Investigation Team, told Fars that all issues pertaining to the performance of FTZ managers and the limits of legal and illegal communication are being defined, adding that no one could expect more of the zones as long as they are self-financed or even financed through green cards or other similar methods.
In practice, free trade zones lost the race against time and failed to establish the required infrastructures which were set up earlier by their counterparts worldwide, he regretted, adding that the stagnant situation of the zones would continue as long as the financial problem is not addressed and removed in the 2006-7 Budget Bill.
He said that all the zones could play a crucial role in offering educational and training services nationwide and worldwide, adding that the officials failed to seize the opportunities offered by the country’s six free trade zones.
He further referred to the atmosphere and contractors as the two concepts generating major economic movements in Iran and other countries, elaborating that by ’atmosphere’ he means the prevalent economic conditions.
He said that economic conditions for investment are rarely met in the domestic free trade zones, clarifying that the differences between the facilities offered by Iranian zones and those in the UAE, Qatar, Bahrain and Amman led to the outflow of capital to the latter zones where investors were provided with more banking facilities and faced far fewer economic constraints.

TEHRAN, Nov. 27--A mining industry official in the resource-rich western province of Kurdestan said Monday that mining operation in Sarigouni goldmine will begin soon.
Abdolfattah Hessami, who heads the Kurdestan Industries and Mines Department, told Mehr that $250 million will be invested in the project, adding that the required exploitation permit is expected to be issued in a week.
“The Ministry of Industries and Mines’ Mining Council is studying the project,“ he said, adding that the main issue has been over the total amount of the mine’s reserves.
He said the mine is believed to hold 14.8 million tons of ore, adding that Zarkouh company, a joint venture between Iran and Britain, has applied for the operation license.
The official said the foreign party will be investing in 70 percent in the project and the remaining 30 percent will be provided by the Iranian side.
In late September, Iran Geological and Mineral Explorations Organization announced that it has discovered 10 new gold reserves across the resource-rich country.
Behrouz Borna, the organization’s exploration affairs manager, said that two new gold zones have been found in Piranshahr and one in Sardasht, both in West Azarbaijan province, one in East Azarbaijan province, three in Khorasan Razavi and three others in Kerman province.
He said Iran’s proven gold reserves stand at 300 tons.
He further said that Iran ranks 57th in the world in gold production.
Over 60 percent of the world’s total 2,600 tons of annual gold production is consumed in Asia.
Some 16 tons of the 35 tons of gold for which exploration permits have been issued are said to be in Sarigouni goldmine.
Some 1,000 gold-rich regions have been identified in 20 provinces.

Given that the cotton production of the country declined from 254,000 tons to 80,000 tons over the past 26 years, the industry cannot even meet one third of the domestic cotton demands.

TEHRAN, Nov. 27--A senior textile industry official here Monday announced that exports of textile products have increased by 45 percent in the year to March 2007.
According to the Persian daily Jahan-e Eqtesad, head of the board of directors of the Textile Industries Association Jamshid Basiri blamed complicated regulations as the main problem facing the industry, adding that the political stance of Middle East states towards Iran has, for example, caused the tariffs imposed on Iranian products to be 12 percent higher than those of Turkey.
He said that Iran does not produce fine wool which is used in Fastony-weaving and carpet-weaving industries and thus has to import the commodity from Uruguay, Argentina, New Zealand and Chile.
“Given that the cotton production of the country declined from 254,000 tons to 80,000 tons over the past 26 years, the industry cannot even meet one third of the domestic cotton demands,“ he noted.
While each kilogram of cotton brings about $120 in revenues and creates 15 to 30 jobs, no subsidy is allocated to the sector, he lamented, adding that the government has failed to provide textile industry with required facilities.
Basiri listed the problems facing the textile industry as high taxes, insurance tariffs and lending rates.
Although the market itself sets prices for textile commodities and there has never been a specific source responsible for fixing prices and regulating the textile markets, no case of bankruptcy has ever been reported in the key sector.

TEHRAN, Nov. 27--Some 4.6 million people have so far received justice shares, the Privatization Organization chief has announced.
According to ISNA, Gholamreza Heidari Kord-Zanganeh said at a press conference that justice shares’ distribution began last February, stressing, however, that the initiative is only a part of the privatization drive.
“The latest reading of Article 44 of the Constitution (which allows large-scale privatizations) has removed many ambiguities,“ he said, adding that the country is determined to implement privatization policies.
The official further noted that state monopoly has to be removed, stressing that the country needs legal frameworks to fight monopoly.
He said those covered by charity services rendered by the Imam Khomeini Relief Committee and the State Welfare Organizations as well as the jobless war veterans were prioritized in the first phase of the justice shares initiative.
Heidari Kord-Zanganeh said in the second phase, rural population and tribesmen would receive the shares.
“Directives on identifying those eligible to receive justice shares (in the second phase) have been issued and the shares will be distributed (among the rural residents and the tribesmen) after receiving their national code number,“ he said.
The official said up to 6.5 million rural residents who qualify for the shares have been identified and that 1.2 million more people are yet to complete their documents.
He called for promoting the shareholding culture in Iran, adding that the total number of shareholders has reached 700,000 people and this figure is expected to reach 24-25 million.

ALGIERS, Algeria, Nov. 27---Algerian Minister of Energy and Mines Chakib Khelil is expected in Tehran on Monday at the head of a high-ranking delegation, it was reported here on Sunday.
A reliable source told IRNA yesterday that while Khelil has in the past attended several international gatherings in Tehran, this would be his first visit to the Iranian capital at the invitation of his Iranian counterpart.
The source added that during the minister’s official visit and as special envoy of Algerian President Abdul-Aziz Bouteflika, he will be visiting a number of Iranian oil installations. Iran and Algeria along with Saudi Arabia, Kuwait, UAE, Nigeria, Iraq, Libya, Venezuela, Indonesia and Qatar are the 11 members of the Organization of Petroleum Exporting Countries (OPEC).

Abouzar project is the first to be fully managed by Iranian experts thus breaking the monopoly of foreign rivals on the offshore oil industry.

TEHRAN, Nov. 27--Three giant offshore projects, Abouzar Offshore Production Complex Renovation & Construction in the Persian Gulf near Khark Island, Redevelopment of South Pipelines and Platform Modification (RSPPM) off the coast of Mumbai, India and Salman Oilfield Development are reportedly in the final stages.
Public Relations Office of Iranian Offshore Engineering and Construction Company (IOEC) quoted Majid Shamlou, the company’s project control manager as saying that the final documents of the India’s RSPPM project, which is located 150 kms off Mumbai, are being compiled and the project is scheduled to be completed and handed over to the Indian side within three months, Mehr reported.
He announced that the project has so far shown a physical progress of 98 percent, adding all restoration and maintenance works are being implemented while some operations, including the hydro test of two pipelines, crossing of one pipeline and a minor portion of platform maintenance, remain to be done.
“Salman project has so far shown a progress of 90 percent,“ he said, adding that the only operations to be carried out are the in-field spool installation and hydro tests, which depend on the installation of oilfield decks by the Iran Offshore Industries Company (Sadra).
He also disclosed that the hydro test of the Siri-Salman pipeline would be complete by the weekend.
Referring to Abouzar Project, he said that the executive works of the offshore project would be complete by early December.
He recalled that Abouzar project was the first to be fully managed by Iranian experts thus breaking the monopoly of foreign rivals on the offshore oil industry, adding that some domestic companies have even managed to implement offshore construction and installation operations at the regional level.
Iranian experts not only managed to install spools, but also initiated new methods in implementing shore pull operations and made use of ordinary vessels in implementing Salman project, he said.
He noted that the RSPPM project is Iran’s largest overseas offshore project in which Iranian experts established an unprecedented record.

L90 can be considered inexpensive in that it is a modern car which is to be sold at a low price compared to other cars available on the domestic market.

TEHRAN, Nov. 27--A senior industrial official said here on Monday that the government is planning to manufacture budget cars for low income citizens, stressing that Renault L90 cars, which will hit the market next year, will have a price tag of 80-100 million rials (8,800-11,000 US dollars).
According to ILNA, Mehdi Mofidi, who heads Iran’s Industrial Development and Renovation Organization (IDRO), further said during a tour of L90 production line at the joint Iran Khodro-Pars Khodro plant in Tehran that talks are underway with China for the production of $6,600 cars, stressing that customers should not expect such a car to offer all the options.
He said that L90, which has been introduced here as a budget car, could be considered inexpensive in that it is a modern car which is to be sold at a low price compared to other cars available on the domestic market.
The official remarked that if the current dispute with Turkey on the import of Renault Megane cars is not resolved, the two countries’ entire trade ties would be affected.
It was announced in September that the joint venture with France’s giant carmaker Renault would begin production of L90 cars from late October and that some 20,000 units will be produced by next March.
Iran is one of the fastest growing auto markets in the region. Major carmakers Iran Khodro and Saipa manufacture a million cars a year.
The two carmakers are involved in the multibillion-euro L90 project with Renault, making it one of Iran’s largest foreign investment ventures.