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Iran’s Petrochemical Companies; A Review of The First Six-Month Performance

Petrochemical industry refers to the production process of chemical products mainly from available hydrocarbons of crude oil or natural gas. The mentioned industry is one of the strategic industries in the countries which are rich in oil and gas reserves like Iran. The total value of Iran’s non-oil exports in 1395 (previous solar year), 20th March 2016 year-end, was amounted about 43,930 million Dollars. As it is shown in the chart below, the share of petrochemical products in non-oil exports was 32% in this period of time.

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Source: www.tccim.ir

The purpose of this article is the performance review of Iran’s petrochemical industry in the first six-month of 1396 (25th March 2017 to 21st September 2017). The share of main regions from total petrochemical productions, amounts of production and proportion of production relative to capacity in these areas are shown in the charts below. It should be noted that, Iran’s petrochemical products mainly classify in four main groups including methanol, urea, ethylene and ethane.

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Source: www.shana.ir

w3

Source: www.shana.ir

w4

Source: www.shana.ir

The trends for TEDPIX(Tehran’s Exchange Dividend and Price Index) and chemical industry index during recent five solar years till the end of Shahrivar 1396(September 2017) are shown in the charts below:

w5

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As it is demonstrated in the graphs, the trends of TEDPIX and chemical index have a positive correlation. Oil and natural gas prices besides the demand and supply of chemical products are the main factors which have influenced the chemical index and TEDPIX subsequently. The historical data of returns for Tehran Stock Exchange(TSE) and chemical industry return are shown in the table below.

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According to the following table, chemical market value is about one fifth of total market value during recent five years, on average. As a result, this fact can confirm the positive correlation between chemical industry index and TEDPIX which has been mentioned earlier in this article.

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In the following, according to www.codal.ir , some details of major companies active in Iran’s petrochemical industry have been summarized based on their first six-month performance in 1396(Solar Year).

Iran Chemical Industries Investment Co.

jj1

*Refer to the last fiscal year **Earning Per Share ***Refer to fiscal year ending Azar

Shazand Petrochemical Co.

jj2

Kharg Petrochemical Co.

jj3

Zagros Petrochemical Co.

jj4

Fanavaran Petrochemical Co.

jj5

Marun Petrochemical Co.

jj6

Khorasan Petrochemical Co.

jj7

Pardis Petrochemical Co.

jj8 *Refer to fiscal year ending Shahrivar (sixth month of solar year) 1397

Shiraz Petrochemical Co.

jj9

*-222 Rials

Kermanshah Petrochemical Industries Co.

jj10

All in all, total petrochemical production of Iran in the first six-month of 1396 was about 26,848.22 thousand tons which includes 5,576.09 million Dollars of exports and 170,406.23 billion Rials of domestic sales. Marun Petrochemical Company with the domestic sales of 16,971,220 million Rials, Nouri Petrochemical Company with the exports of 650,597.04 million Dollars, Bandar Imam Petrochemical Company with the domestic sales amount of  1,004.30 thousand tons, Zagros Petrochemical Company with the export quantity of 1,470.67 thousand tons and Khorasan Petrochemical Company with the first place in proportion of production relative to capacity, are top petrochemical companies with the best performance report in the first six-month of 1396. It is anticipated that, the most petrochemical companies will announce positive adjustment in their performance for the second six-month period of their fiscal year and that is mainly due to some factors which will lead to increase in prices of oil and commodities such as:

  • OPEC agreement to extend oil supply cuts until 2018.
  • 80% drop in the transportation of oil from the Keystone Canadian pipeline to the United States.
  • some factors on supply and demand sides like supply restrictions of Methanol in Asian countries besides reducing inventory stock level of this product.

D19 Mine, Potential Opportunities for Chadormalu Co. and Steel Industry

Iran is one of the richest countries in the mining sector around the world. Chadormalu Co. is among major companies in the field of producing iron ore concentrate. Nowadays, Department of Environment (DOE) issued the permission of primary discoveries in D19, one of the mines which has been discovered recently in Iran. According to Mohammadreza Bahraman, the head of Iran Mine House, finally it would be possible to initiate exploration in order to get a better estimate of potential capacity available in this mine.

It’s interesting news for Chadormalu (Known as CHML1 in Tehran Stock Exchange) because its current mine reserves could be exploited just for around another six more years. Considering Iran’s 20-year vision plan in steel industry in order to reach 55 million tons production in 2025, totally 150 million tons of iron ore is required to be produced therefore each company should produce more proportionately, including Chadormalu. According to last survey, Iran’s iron ore probable reserves are around 5.1 billion tons, which 3 billion tons of them are proved reserves. These proved reserves are expected to be exploitable only for less than another 20 years. As a result, Iran needs to produce 600 million tons per five years to prevent encountering lack of supply in iron ore and subsequently steel chain.

D19 is located in Ardakan, a town in Yazd province that is 180 kilometers far from Yazd and near other current Chadormalu’s mines. In 2015, Chadormalu and Iran Central Iron Ore Co(ICIOC), won exploitation of this mine in a tender which held by ministry of industry, mine and trade. Primary study shows that there are around 100 million tons reserves of iron ore in D19 and it is expected that the reserves should be more than this. Unfortunately, because D19 is near the home of one of the endangered species which is Iranian cheetah and it is a protected area by Department of Environment(DOE) and according to the Iranian law, DOE is in charge of allowing any exploration activity in these protected areas. Chadormalu’s CEO said the company is obligated to concern about environmental issues and implement plans to preserve this species. He noted this after he got the permission by DOE for new exploration.

In addition, as we discussed about major problems in Iron Ore industry in Iran in the article of “Major Problems in Iron Ore Industry in Iran”, that one of the predicament of iron ore mining companies is governmental interference in pricing. Because iron ore prices in Iran could not soar as prices in international markets, Chadormalu is not able to gain same as international companies. As a matter of fact, domestic iron ore price has not followed the supply/demand mechanism, its price is based on 13% of average price of billet traded in the Tehran Stock Exchange, by this way, it’s an unfair mechanism. Mentioned article discussed about iron ore pricing in detail. Nowadays, Iran has a plan to lift governmental control on iron ore pricing. It would be amazing news for Chadormalu not only by producing more and completing the steel chain, but also by abolishing governmental control on iron ore pricing in the domestic market. By this way, discovering D19 is a vital project for Chadormaul.

At the moment, Chadormalu’s capacity is around 3.5 million tons in pellets, 1.5 million tons in granulated iron ore and 10 million tons in iron ore concentrated, and its mine could support for about 5 to 6 more years, as a result, D19 would be a real blessing for Chadormalu.

To put it in a nutshell, issuance permission for prime exploration in D19 is vital step not only for Chadormalu, but also for all steel chain in Iran. Due to many high graded iron mines located in declared protected areas by Department of Environment, mining companies are able to promote their plans without any environmental damage by implementing green mining and regarding environmental issues.

Consumer Price Index in August 2017

The Consumer Price Index (CPI) increased 0.2 percent in the month of the Iranian year “Mordad” (ending August 22). The inflation rate has advanced 10.0 percent over the last twelve months.

Note: The indices of prices has been calculated based on the new base year 1395 (2016-17) as of July 23.

Summary Results of the CPI for Mordad (August 22); (1395=100)

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The food and beverages index decreased 1.1 percent in Mordad, largely due to the decreases in the indices for fresh fruits by 15.2 percent, fresh vegetables 3.9 percent, and pulses 1.0 percent.

The index for tobacco was unchanged in Mordad.

The clothing and footwear index increased 0.5 percent, mostly as a result of the increases in the indices for footwear by 1.1 percent, tailoring, cleaning and laundering wage 1.1 percent, and clothing materials 0.4 percent.

The housing, water, electricity, gas and other fuels index went up 0.8 percent which was attributed to the advances of the indices for rental equivalence of owner occupied houses by 0.9 percent, rent of residential houses 0.8 percent, and maintenance and repair services of the dwelling 0.6 percent.

The furnishings, household equipment and routine household maintenance index rose 0.5 percent, largely due to the increases in the indices for goods and services for routine household maintenance by 1.0 percent, glassware, tableware and household utensils 0.5 percent, household appliances 0.4 percent.

The index for health increased 1.2 percent, mostly as a result of the increases in the indices for hospital services by 2.9 percent, “medical, paramedical and dental services” 1.1 percent, and “medical products, appliances and equipment” 0.2 percent.

The transport index went up 0.5 percent in Mordad that was principally attributed to the increases in the indices for passenger transport by road by 1.9 percent and operation of personal transport equipment 0.2 percent.

The index for communication increased 0.5 percent, mostly as a result of the increase in the index for telephone and telefax equipment by 2.7 percent.

The recreation and culture index rose 0.9 percent in Mordad, largely due to the increases in the indices for package holidays by 3.0 percent, recreational and cultural services 1.1 percent, TV, radio, recording and production of sound and pictures 0.8 percent.

The education index advanced 0.2 percent over this month, mostly as a result of the increase in the index for supplementary courses tuition fees by 0.8 percent.

The index for restaurants and hotels rose 1.1 percent, mainly due to the advances in the indices for catering services by 1.7 percent, food away from home 1.0 percent.

The miscellaneous goods and services index increased 0.9 percent in this month.

Increases in the indices for goldsmith wage by 1.9 percent, personal care 1.0 percent, and personal effects 0.8 percent were the major reasons for this rise.

Aromatic Industry; Revealed and Untapped Opportunities in Iran

Aromatics refer to the group of organic compounds including benzene and its derivatives. Aromatics are usually used in chemical industries, industrial resins and solvents. Globally, the three basic aromatic compounds including benzene, toluene and xylenes are produced on large industrial scale with a total volume of approximately 140 million metric tons in 2016. According to the recent report published by International Conference on Information Systems (ICIS), aromatics industry will have an optimistic future till 2020 because of the appearance of the new markets and technologies. The sharp decline in the production of pyrolysis and finally more dependency on benzene in United States can be pointed as an effective factor regarding increase in demand for one of the main aromatics which is benzene. The amounts of main aromatics’ production in 2016 are shown in the chart below:

french-1

Source: www.ihs.com/index.html

In Iran, the major aromatics producers are: Isfahan Petrochemical Co., Bandar Imam Petrochemical Co., Bouali Sina Petrochemical Co. and Nouri petrochemical Co.

Nouri Petrochemical Company also known as Borzuya is the biggest global producer of Aromatics with the capacity of 4.5 million tons per year. The mentioned company was founded in 1998 in South Pars Special Economic Energy Zone. Nouri Company has been privatized by the Iranian government to Persian Gulf Petrochemical Industries Co.. Nouri produces p-Xylene, o-Xylene, benzene, raffinate, heavy aromatics, LPG, heavy hydrocarbons, pentane cut, light hydrocarbons mainly through condensate and pyrolysis gasoline as feedstocks which are provided from South Pars and Jam Petrochemical Co. . The nominal capacities of products are shown in the table below:

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Source: www.bpciran.com

One of the strategic projects in Nouri Petrochemical Co. is heavy cutting sweetening project which will lead to higher quality through elimination of sulfur compounds from petroleum hydrocarbons. The capacity of the foresaid project is about 2 Million tons per year. In this regard, France has promised to transfer technical knowledge in Nouri petrochemical Co. and this was the first contract in aromatics industry with value of about 150 Million Euros in Iran. Nouri is going to run two downstream plans in Asaluyeh region and increase the profit margin through the completion of the value chain by implementing the mentioned development plan.

To sum up, France has been pioneered in signing different contracts in Iran’s petrochemical industry and there are still lots of opportunities available in this industry. It should be noted that, there are too many investment opportunities in Iran. As an example, according to the ICIS report, the process of increasing production of shale gas in United States will lead to replacing of gas with naphtha in the cycle of aromatic production in coming years. In this regard, the major producers of aromatics from naphtha in Iran like Buali Sina and Isfahan petrochemical companies can be more attractive for foreign investors because of their numerous advantages such as easy access to the feedstocks and also better condition for road transportations, besides bright future of aromatics market.

Iran, China’s Economies Complementary: Minister

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Iran-Russia Gas Plans Affect World Market: Minister

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Russia Hosting Conference on Iran-North Caucasus Cooperation

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Iran’s AKT, Switzerland’s Autoneum Sign License Deal

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Tehran-Baghdad Oil Swap Deal to Last for One Year: Iraqi Minister

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بازه زمانی دریافت خبر:

Iran, Iraq Sign Deal to Swap Kirkuk Oil

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بازه زمانی دریافت خبر:

Iran President Submits Budget Blueprint to Parliament

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بازه زمانی دریافت خبر:

Turkmenistan to Take Gas Dispute with Iran to Arbitration: Report

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  • برای دریافت خبرنامه آدرس ایمیل شما ضروری می باشد
  • هر زمان که نیاز به ویرایش این اطلاعات داشتید، با وارد کردن ایمیلتان تغییرات را ذخیره کنید
  • در صورتی که تمایل به ادامه اشتراک نداشتید، در ایمیلی که از سوی ما دریافت می کنید، عدم اشتراک را انتخاب کنید
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بازه زمانی دریافت خبر:

Iran to Purchase 120,000 Tons of Soymeal: European Traders

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  • برای دریافت خبرنامه آدرس ایمیل شما ضروری می باشد
  • هر زمان که نیاز به ویرایش این اطلاعات داشتید، با وارد کردن ایمیلتان تغییرات را ذخیره کنید
  • در صورتی که تمایل به ادامه اشتراک نداشتید، در ایمیلی که از سوی ما دریافت می کنید، عدم اشتراک را انتخاب کنید
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Oil Minister Slams Pakistan’s Inaction on Gas Deal with Iran

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  • برای دریافت خبرنامه آدرس ایمیل شما ضروری می باشد
  • هر زمان که نیاز به ویرایش این اطلاعات داشتید، با وارد کردن ایمیلتان تغییرات را ذخیره کنید
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Gazprom signs MoU to tap Iran’s LNG

TEHRAN, Dec. 14 (MNA) – According to an announcement made by Russian gas giant Gazprom, the Russian company will tap Iranian LNG in partnership with two Iranian national companies.

Russian gas giant Gazprom said on Wednesday it had signed a memorandum on possible cooperation in a liquefied natural gas project in Iran, Reuters reported.

The news outlet quoted the Russian company saying the memorandum was signed with Iranian Oil Industry Pension, Saving and Staff Welfare Fund.

Iran LNG is designed to have two lines of 5.25 million tonnes of annual capacity, each with a view of eventually increasing total production to 21 million tonnes per year. Its key shareholders are National Iranian Oil Company as well as Oil Industry Pension, Saving and Staff Welfare Fund.

Gazprom has a number of gas memorandums with Iran.

Production of LNG requires a technology heavily patented by American companies. That technology cannot thus be provided to the Islamic Republic due to sanctions by the US against the country.

Foreign companies are also banned from developing any LNG project on Iran’s soil due to the same sanctions.  The country had previously devised three liquefaction projects – Pars LNG, Persian LNG and NIOC/Iran LNG – but had to shelve them after investors – Total and Shell - refused to push them forward as a result of sanctions.

Gazprom is already a major player in the global natural gas liquefaction market.  It currently supplies LNG to ten countries – Japan, Korea, China, India, Taiwan, Britain, the USA, Kuwait, the United Arab Emirates, Mexico – as well as others.

The company’s only operational LNG project is Sakhalin II which has an annual capacity of 9.6 million tonnes and was built in 2009 in cooperation with Shell. A second key liquefaction project is Baltic LNG which the Russian company is planning to develop - again with the help of Shell.

The technicalities through which Gazprom would cooperate with Iran over production of LNG without falling afoul of US sanctions are not known.

Gazprom further said in its statement that it has signed another basic agreement with Industrial Development & Renovation Organization of Iran (IDRO) over the past few days over joint gas liquefaction projects in third countries. The agreement also envisages projects in the field of advanced gas processing and petrochemistry in the territory of Iran, it added.  

Iran has for long been discussing with Oman to produce LNG in its Qalhat liquefaction plant.  The project involves piping gas from southern Iran to the Persian Gulf sultanate and liquefying it into LNG for shipments to international markets.

Gazprom’s agreement with IDRO could be a copy of the same scheme in what could be a new strategy by the Islamic Republic to launch liquefaction projects in offshore facilities.  An earlier instance of such strategy became visible when Iran said an LNG project would be launched on a ship in Persian Gulf waters.

The project has been awarded to Norway’s Hemla Vantage energy giant which would install the plant on a vessel close to Kharg Island.  It would become operational over the next two years.   

YNG/PR

China ready to use Iranian oil, gas resources

China ready to use Iranian oil, gas resources - Mehr News Agency زنگنه و رئیس اتاق بازرگانی چین TEHRAN, Dec. 13 (MNA) – CICCPS secretary general, while pointing to lack of energy resources in China, expressed the East Asian country’s readiness to use Iran’s oil and gas resources.

Wang Yanguo, Chairman of the Presidium, Vice President and Secretary General of China International Chamber of Commerce for the Private Sector (CICCPS), made the remarks at a meeting on Tuesday with the Iranian Minister of Petroleum Bijan Zanganeh in Tehran.

Speaking at the meeting, Zanganeh said Iran and China enjoy widespread and very solid relations in various sectors expressing hope that Mr. Yanguo’s visit will develop and strengthen existing relations in line with investment of China’s private sector companies in Iran.

CICCPS secretary general, for his part, also pointed to the extensive relations between Iran and China saying “China has a shortage of energy resources, while Iran, our long-time friend, possesses rich oil and gas resources which could help to expand ties between the two countries.”

“Iran and China can cooperate through private sector investment in Iran, especially in oil and petrochemical projects,” said the visiting official stating that growing ties between Iran and China were continuing despite all barriers.

Statistics reveal that volume of trade between Iran and China rose by 31 percent last year. At the meeting between presidents of the two countries, it was agreed to elevate level of trade between Tehran and Beijing to as high as $ 600 billion a year.

HA/4170460

S Korean amb. visits Fars province, talks of future coop.

S Korean amb. visits Fars province, talks of future coop. - Mehr News Agency نهمین نمایشگاه بزرگ گردشگری پارس در شیراز TEHRAN, Dec. 12 (MNA) – South Korean ambassador to Iran said on Tuesday that his country will help Iranian south-western province of Fars develop tourism facilities in the province.

On a visit to Iranian Fars province, South ambassador to Iran, Kim Seung Ho announced that in the near future his country and the province will develop their cooperation in tourism industry and tourist exchanges, and expressed his country’s readiness to work with tourism services in Shiraz to provide visa services to tourists.

The South Korean ambassador also referred to collaborations in the field of specialized training courses in order to raise the levels of staffing in the residential units, organizing tours and attending tourism exhibitions.

Kim Seung Ho visited a number of fascinating attractions in Fars province on his trip and described the Eram Garden as “the Eram Garden is one of the most valuable treasures of tourism in Shiraz."

KI/4170124

Gov. approves of $2bn foreign investment in industry sector

Gov. approves of $2bn foreign investment in industry sector - Mehr News Agency افروز بهرامی TEHRAN, Dec. 12 (MNA) – An official at the Ministry of Industry said the incumbent government had approved of two billion dollars of foreign investment in 38 projects at industry, mining and commerce sectors.

Director-General of Foreign Investment Affairs at the Iranian Ministry of Industry, Mine and Trade Afrooz Bahrami said, since the previous government took office, as many as 252 projects worth 11 billion dollars with foreign investment have been approved in the industrial, mining and trade sectors 106 of which have come on stream.

She expressed that $ 2 billion of these investments pertained to the incumbent government asserting “over the past 20 years, a total of $ 40 billion foreign investment, equal of $ 2 billion annually, has been absorbed in all fields of industry, mining and commerce.”

“The figure indicates the significance of foreign investment attracted by the incumbent and previous governments,” she underscored.

Bahrami, while emphasizing that technology transfer and access to international markets are included in all new foreign contracts, added “distribution of foreign investment has become balanced and directed towards various provinces of the country as, in the meantime, provinces of Fars, Bushehr and Kerman have attracted the largest amount of foreign investment, respectively.

“Germany and Italy, having overtaken China, now rank first and second in volume of investment in Iran,” she continued.

At the end of her remarks, the official underlined that the country’s industry, mining and trade sectors required 20 billion dollars of investment annually six billion dollars of which are projected to be supplied through foreign investors.

HA/4169623

Russians to build 6,800 freight cars for Iran

Russians to build 6,800 freight cars for Iran - Mehr News Agency عباس آخوندی TEHRAN, Dec. 12 (MNA) – Road Minister Akhundi said Iran holds a contract with Russia for construction of 6,800 railway carriages most of which will be build in Iran’s soil.

Iranian Minister of Roads and Urban Development Abbas Akhundi said five provincial centers will be connected to the country’s railway transport network in the ongoing Iranian calendar year (to end March 20, 2018) asserting “the projects are 90% through and will certainly become operational by year end.”

He went on to state that Kermanshah and Hamedan have already been connected to the national railroad network while the projects in Urmia, Qazvin and Rasht are still underway.

Akhundi maintained that 516 kilometers of new railroad will be implemented in the present year adding “added to unfinished projects of the previous year, a total of 919 kilometers of new railways will come on stream.”

Roads minster later stated that Iran was in contract with Russia for 6,800 train wagons for carrying cargo most of which will be manufactured inside the country.

“Majority of the country’s demand for wagons will be supplied domestically in the coming three years,” he underscored.

The official also noted that, through a joint Iran-South Korea joint venture, a contract has been signed for construction of 540 railcars to be used in suburban transport while further deals will be inked with Germans, Russians and Koreans for purchase and manufacturing of passenger train wagons.

HA/4169589

Iran, Turkey sign MoU on urban waste management

Iran, Turkey sign MoU on urban waste management - Mehr News Agency پرچم ایران و پرچم ترکیه ، پرچم ایران و ترکیه TEHRAN, Dec. 11 (MNA) – Industrial Development and Renovation Organization of Iran (IDRO) and the Turkey's ÇUTAŞ Co. signed a Memorandum of Understanding on environmental issues and urban waste management.

Fardad Daliri, Deputy head of IDRO Group for the development of advanced industries and energy megaprojects, attended the signing ceremony for the said Memorandum of Understanding on waste management and asserted that industrial, commercial, agricultural and urban wastes are among the most serious problems for industries and urban development today.

Asserting that modern technologies can be used to arrive at a nature-friendly solution for the disposal of waste by burning it and turning it into ash, Daliri added “after conducting the necessary research, Turkey will submit a report on this type of cooperation, investment and transference of technology to IDRO Group.”

BS/4168296

Metallurgical exports climb by 39%

Metallurgical exports climb by 39% - Mehr News Agency کارخانه تولید فولاد TEHRAN, Dec. 11 (MNA) – An official at Ministry of Industry, Mine and Trade said Iran had exported 5.789 million tons of metallurgical products in the first seven months of the current Iranian calendar year (began March 21).

Mikaeil Azimi, Director General of Mining Industries Affairs Office at the Iranian Ministry of Industry, Mine and Trade, made the remarks adding “export value of metal products in the seven-month period was $ 2.5 billion representing 8% growth as compared to the figure for the similar period last year which stood at 2.3 billion dollars.

He said export figures so far were ahead of the plan to achieve value of $ 4.1 billion in shipment of metal products by the year end.

The official later asserted that, in the meantime, export volume of steel ingot had been 3 million and 500 thousand tons, which in comparison to the previous year, indicates growths of 120 and 116 per cent in weight and value, respectively.

“In the first seven months of the current year, a total of 11.315 million tons of steel products were manufactured, which is 10 percent higher than last year,” he continued.

Azimi later stated that 12 million and 250 thousand tons of various steel ingots had been produced showing a 14-percent uplift as compared to the similar period one year ago.

Referring to the plans to launch various steel chain projects in the government, he pointed to the growth of sponge iron production saying “production of sponge iron grew by 19% to hit 12.590 million tons in the seven-month period.”

The official rejoiced to announce that in the first seven months of the current year, imports of all kinds of metal products had decreased by 33% in weight as compared to last year.

“In the meantime, imports of steel ingot fell by 83 percent while its exports skyrocketed by 120 percent.”

Mikaeil Azimi enumerated main destination of Iranian export product including Iraq, Afghanistan, Turkey, Turkmenistan, Qatar, Pakistan and the United Arab Emirates among the others. “Moreover, flat products are mainly deployed to Iraq, the UAE, Belgium, Afghanistan, Spain, Armenia and Oman,” he emphasized.

He also pointed out to steps taken to support the country’s steel chain and to remove the existing barriers and problems, hoping to reach the target of producing 55 million tons of steel on the basis of Iranian Vision document in 2025 horizon.

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FAO, agriculture ministry celebrate soil day in Iran

FAO, agriculture ministry celebrate soil day in Iran - Mehr News Agency FAO TEHRAN, Dec. 10 (MNA) – Food and Agriculture Organization of the United Nations (FAO) in collaboration with the Iranian Agriculture Ministry marked the World Soil Day 2017 in Tehran.

Food and Agriculture Organization of the United Nations (FAO) in collaboration with the Iranian Ministry of Agriculture marked today (Sunday, December 10) World Soil Day 2017 in Tehran to highlight this year's theme “Caring for the Planet starts from the Ground” for the Iranian stakeholders.

According to a press release published with the FAO Representation in Iran, Rao Matta, the FAO Representative ad interim to the country in his opening remarks by addressing Mahmoud Hojjati, Minister of Agriculture; Isa Kalantari, Head of Department of Environment; and heads of diplomatic missions attending the event, underscored that soil has a fundamental role in mitigation of the effects of climate change, maintenance of water springs and in sustaining biodiversity.

“Fortunately, the international community is awakening to the threats concerning the soils of the planet and to the challenges that lie before us. The greatest example of this is the creation of the Global Soil Partnership by the FAO” he added.

Matta reiterated that the FAO Voluntary Guidelines for Sustainable Soil Management that have been approved by our Council last year offer the framework for intensifying sustainable soil management in all countries including the Islamic Republic of Iran.

The FAO Representative ad interim to Iran concluded his remarks by saying that prevention of soil contamination remains the best way to ensure healthy soils and food safety that is the source of life for the next generations.

World Soil Day (WSD) is marked annually by FAO across the world normally on 5 December as a means to focus attention on the importance of healthy soil and advocating for the sustainable management of soil resources.

The FAO Conference unanimously endorsed World Soil Day in June 2013 and requested its official adoption at the 68th UN General Assembly. In December 2013 the UN General Assembly responded by designating 5 December 2014 as the first official World Soil Day.

YNG/PR

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