Russia and Iran have agreed to jointly develop the world’s largest zink-lead deposit in central Iran, Russian business daily Kommersant said on Tuesday.
“The sides agreed to implement a project on the construction of an ore mining and processing enterprise at the Mehdiabad zinc-lead deposit,” the paper cited a protocol signed at a meeting of the Russia-Iranian commission on trade and economic cooperation on September 11.
Russia’s Rostekhnologii corporation and Iranian Bank Saderat Iran will run the Mehdiabad project with estimated investment of $1.2 billion.
The deposit’s total reserves are estimated at 394 metric tons of ore with an average grade of 4.2% zinc and 1.6% lead.
The implementation of the project could be hampered by the fact that the Iranian bank is subject to UN international sanctions against Tehran, the Kommersant said.