Socially Responsible Mining in East Iran: The Sangan Iron Ore Mines

The Islamic Republic of Iran is a very important producer of raw materials in the world. The country holds 68 types of minerals, including salt, sand and gravel, chrome, lead, zinc, copper, coal, gold, and iron-ore. With more than 37 billion tons of measured and indicated reserves and 55 billion tons of total mineral resources, Iran is ranked among the 15 major mineral-rich countries. Sangan iron-ore mines (SIOM) is one of the biggest iron ore mining complexes in Iran, located in a remote, but strategically important area near the Afghanistan border. The Iranian government has planned several mining projects in this region for a stepwise development over the next 5 years to satisfy the growing demand of the Iranian steel industry. In cooperation with private companies, these projects shall be realized as sustainable as possible. This paper introduces SIOM and describes socially responsible activities undertaken during the initial development of this mining complex. The effects of these activities will be demonstrated. Unique attributes of the Sangan area have a significant impact on the acceptance of SIOM by regional stakeholders. The government has made several social investments that benefit workers´ families and the community. They are attempts to build social capital for the mining operations and demonstrate a commitment for socially responsible mining to the communities and the local population. They aim to create a balance between the local and regional expectations and requirements and the necessity to secure the corporate profitability at a reasonable and sustainable level. Investment in socially responsible activities is not a choice but a necessity to improve the relations between mining companies and stakeholders in the communities. It is recommended that social investments should be carefully planned and implemented from the early stages of mining activities, and should proceed throughout the life cycle of the mines.