Advisor to the Prime Minister: The value of Iraq's natural resources exceeds $16 trillion

The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Wednesday that Iraq is moving towards diversifying its GDP sources by expanding investment in the mining sector. He noted that the value of Iraq's natural resources exceeds $16 trillion.

 Saleh told the Iraqi News Agency (INA): "Iraq is moving towards diversifying its GDP sources by expanding investment in the mining sector, a sector that has been neglected for decades. The government has signed memoranda of understanding with reputable international companies in the fields of mineral exploration and investment, particularly in phosphate, sulfur, lithium, and copper fields. 

This is within the framework of the strategic directions of the Iraqi government's program to diversify sources of national income and optimally utilize the country's resources." He added, "Investment in the mining sector will contribute to attracting billions of dollars in fields ripe for development, such as sulfur, phosphate, lithium, and other minerals." 

He pointed out that "Iraq ranks first in the world in terms of the concentration of natural resources per square kilometer, and ninth globally in the value of various natural resources, with an estimated value exceeding $16 trillion, according to published global estimates." 

He explained that "the various reserves of land wealth constitute a diverse stock of minerals, foremost among which is phosphate: its reserves are estimated at more than 10 billion tons, and our country ranks second globally in terms of reserves, and is concentrated in the Akashat region of Anbar Governorate. Second is free sulfur: our country enjoys large reserves in Mishraq in Nineveh Governorate, which are among the largest free sulfur fields in the world. Third is silica: in the Najaf region and western Iraq, it is used in the glass, electronics, and semiconductor industries, and is among the most important and purest reserves in the world, according to published international estimates." He continued, "Likewise, iron, manganese, copper, and gold are distributed across various regions of Iraq, particularly in the Kurdistan Region and the western and central borders, except for southern Iraq, which possesses vast reserves of other rare natural resources."

He pointed out that "the policy of diversifying the national economy by extracting and processing mineral resources for national industries, and then adopting their export by maximizing value-added chains in manufacturing or semi-manufacturing industries, will add at least 10 percent to the GDP in the first phase."

He pointed out that "after that, the percentage will increase to become one of the pillars of diversifying national income sources over time, especially if the link between mineral investment and the development of national manufacturing industries grows, such as fertilizer, aluminum, glass, electronics, and batteries related to renewable energy. 

This is in addition to the introduction of foreign capital and advanced digital technology and services, the provision of national job opportunities, and investment in Iraqis as a productive national resource."

 He emphasized that "the mineral diversification policy is one of the opportunities to implement the philosophy of sustainable development and free the national economy from the extreme monopoly of oil resources. It is considered an economic defense against the monopoly of oil prices, which directly impacts the state budget."

He emphasized that "present and future generations will witness a new era of investment for Iraq in economic and technological progress and prosperity, towards building a promising model of balanced development." He noted that "Iraq, which strongly aspires to build investments in mining fields as an additional resource in the medium and long term, does not rule out investment in oil fields, but it cannot completely replace oil in the near term. 

Rather, it serves as an important complement to the strategy of diversifying the national economy."

He concluded by saying: "The mining sector represents a promising opportunity for Iraq, not only to increase public financial revenues, but also to restore the structural balance of the Iraqi economy, create major national employment opportunities, and achieve diversified development in areas rich in natural resources, which will lead to increased investments in infrastructure, within a model of geographically balanced economic development for all of Iraq."  link