Mining Sector         Based on the provision of this law, exploration of mineral resources subject to the agreement of the government may be carried out by governmental, cooperative and private sector (individuals or legal entities), or by the Ministry of Industries and Mines itself. When mineral resources are found for the first time the explorer may apply for a license within one year after discovery of the mine to enjoy Priority Right. The law also permits those who have registered their discovery, individuals and legal entities, cooperatives, private sector and general users of minerals to apply for exploitation license through the Ministry of Industries and Mines. The validity of such license would be commensurate with the reserves of mine, endorsed plan of exploitation and facilities available at the mine. Based on the exploitation plan, the effective period for operating the mine ranges from minimum two years to fulfill the capital return to maximum twenty-five years. At the end of the period, validity of exploitation license may be extended upon request. By virtue of law, the exploitation license is a legal document in force that can be transacted or conveyed to the third party. According to the latest Legal Act, excavation of Class (I) and (II) mines (big and small scale mines) by private sector and cooperatives is permitted, however, exploitation of Class (III) and (IV) mines is merely restricted to the government. The largest Mineral Mines of Iran Further to rich oil and gas reserves, Iran is enjoying a variety of mineral resources. Huge deposits of iron ore, copper, coal, cobalt, chrome and other metals emphasize this fact. Based of data released by Iranian Statistical Center the total mineral reserves of the country amounted to 4855 million tons in 1998. The biggest mineral mines of Iran are ranked as follows: Sarcheshmeh and Miduk copper mines, Gol Gohar, Choghart and Chadormaloo iron ore mines, Angooran lead and zinc mines in Zanjan province, Sangrood, Karsang and Kiasar coal mines in central Alborz mountain chains and Pabdana coal mine in Kerman province. Operational Mines According to reports released by Iran Statistical Center some 2436 mines were being exploited in 1998 among which 401 mines are currently being operated by governmental sector and 2035 mines by private sector. Among all operational mines, sand, gravel, ornamental and mass stones with 971, 375 and 259 mining pits consist the greatest number of mines in the country. These operational mines in different mineral categories are as follows: 1- 20 iron ore mines 2- 60 coal mines 3- 2083 sand, gravel and stone mines 4- 39 non-iron metal mines 5- 230 other types of mines Based on data released by Iran Statistical Center in 1998, Khorassan and Esfahan provinces with 212 and 156 units of mines and East Azerbaijan as well as Khuzestan provinces both equally with 137 units operate the greatest number of pits, respectively. The total value of mineral output in 1998 hit Rls2,695 billion among which iron ore, coal and ornamental stones with revenues of Rls495 billion, Rls494 billion and Rls441 billion yielded highest annual income for the country. In 1998, 551 mines (23 percent) by explosion, 340 mines (14 percent) by drilling, 180 mines (7 percent) by wire cutting and 1492 mines by some other methods out of 2436 operational mines were excavated. Excavation and Steel Mill According to data released by Ministry of Industries and Mines some 104 million tons of minerals have been excavated in 1999. The figure shows %4 increase compared to the corresponding figure of the preceding year. During the same year, output of metals and minerals sector with an increase of %18.4 amounted to 9.7 million tons. In the same year, the production of pig iron (including blum, Slobe and ingot iron) and stock steel with %11.9 and %17.4 growth reached 5.3 and 6.3 million tons, respectively. Furthermore, total aluminum output (produced by Iran Aluminum Corporation) gaining %6 increase hit 230.1 thousand tons. In the same year, excavation of copper with a slight increase amounted to 13.7 million tons and total output with %1.5 decrease comparing to the preceding year stood at 26.1 million tons.