Iran Announces Discovery of Major New Gold Reserve

Iran has announced the discovery of a substantial new gold reserve within one of the country’s largest gold mines. The information was reported on Monday by local media, according to AFP. The newly identified vein structure, described as a “Shira” formation, was found at the privately owned Shadan gold mine located in the eastern province of South Khorasan. Fars News Agency has referred to the site as one of the country’s most significant mines. The agency reported that the new deposits have been formally verified by the Ministry of Industry, Mining and Trade.

The report further stated that the confirmed reserves of the Shadan gold mine in eastern Iran have increased considerably following the discovery of the extensive gold vein. It noted that the mine now contains 7.95 million tonnes of oxide gold ore and 53.1 million tonnes of sulphide gold ore. Oxide ore is generally easier and less costly to extract. Iran has not officially disclosed the full extent of its national gold reserves, although it has claimed a substantial rise in gold purchases in recent years.

In September, the Governor of Iran’s Central Bank, Mohammad Reza Farzin, stated that the bank was among the five largest gold purchasers globally during 2023–2024. Local media, quoting Central Bank official Yekta Ashrafi, reported that increasing the country’s gold reserves would help strengthen the economy amid international sanctions. Iran has a total of 15 gold mines, the largest of which is the Zarshouran mine in the north-west. Sanctions imposed by the United States and Western nations—following accusations that Tehran sought to militarise its nuclear programme—have negatively impacted the Iranian economy. Tehran has consistently rejected these allegations. The economic crisis has further worsened during the 12-day conflict following Israel’s unprecedented assault, during which the United States temporarily aligned with Israel in targeting Iran’s nuclear facilities. With soaring inflation and the depreciation of the rial reducing purchasing power, many Iranians now view gold as a secure asset. On Monday, the US dollar traded on the informal market at nearly 1.17 million rials and the euro at roughly 1.36 million rials, according to exchange rate monitoring websites Bonbast and Alanchaand.

Khaborwala/SS