During the past several years, Iran, led by President Ali Akbar Rafsanjani, has been quietly procuring large supplies of sophisticated armaments that could be used against Israel. This unstable giant has purchased ICBM’s, fighter planes, nuclear technology, SCUD missiles and shipment loads of light weapons and ammunition. In the “Tidings” 2/93, we reported about these purchases and placed particular emphasis on Iran’s appropriation of an unspecified number of Kilo class submarines for use in the Red Sea and Persian Gulf.
Continued buildup
To enhance their position in both geographic areas, Iran has continued unabated in her arms purchases. According to Time magazine, (February 7, 1994) “U.S. defense department officials are distressed over intelligence reports that Iran is trying to buy a sophisticated underwater mine from China. The rocket-propelled antiship mine, dubbed an EM53, can be planted on the sea floor and then propelled by rocket engine toward a target ship. Use of such a mine could block traffic through the Strait of Hormuz and interrupt much of the world’s oil supply.”
A weak economy
While these purchases have put Iran in a powerful military position within the Middle East, they have added a great burden to an already strained economy. In January, 1994, The Middle East Magazine reported: “the most immediate problem facing the Rafsanjani administration in 1994 will be sorting out its debt problems. Iran has approximately $30 billion of external debt and the country is believed to be up to $10 billion in arrears on its debt, of which about 80% is in short term letters of credit. Unless Iran can reach a rescheduling agreement with its Western creditors, it could be headed for a full-fledged debt crisis.”
In order to alleviate the debt crisis and continue its military growth, Iran has attempted to persuade OPEC to raise prices by cutting back on oil output. The New York Times reported April 3, 1994 on the failure of this strategy. “At the recent Geneva meeting of OPEC nations, Iran and other OPEC members ganged up on Saudi Arabia, demanding that it cut back some of its huge production. So far, the Saudis have refused to any cut in oil production. The Saudis say that they have 100 years of oil in their backyard and their priority must be to protect their market share for the long haul — even if that means lower prices today.”
The failure of OPEC to agree on a lower production limit caused the price of crude oil to drop to $13.75 a barrel, the lowest price in over five years. It is expected world oil prices will drop even further once Iraq is permitted to resume oil exports. Such permission is scheduled once Baghdad fulfills United Nations conditions imposed following the Gulf War.
As recently as three years ago, the Iranian president predicted oil prices would shoot up to $30 a barrel at the end of the Gulf War. It was on this assumption that he began his shopping spree for armaments. Today, Iran finds herself wishing to continue her military acquisitions while facing a serious decline in her oil revenue, which makes up 80% of her exports. Iran’s response had been to look for other sources of revenue.
The mining industry
The Middle East Magazine reported in September, 1993 that Iran had embarked on an extensive campaign to exploit her known deposits of minerals. “The deputy mines and metals Minister, Rahim Kolahduz, has said that Iran will not only increase their mineral output by incorporating Western mining methods, but will also enhance their existing productivity by offering mines to the private sector.”
While not yet a large contributor, this effort shows potential for having a valuable impact on the economy. Production has increased not only in mines but also in the products and alloys that are derived from the mines. “Production at the Sarcheshmeh complex in Kerman exceeded 120,000 tons in 1993, up by 5% when compared with the preceding year. A production target of 145,000 tons of copper has been set for 1994, and this target will be achieved by mining 500,000 tons of copper ore annually” (Ibid.).
The same periodical reported the Iranian government has allocated funds to acquire a copper concentration factory capable of producing 150 tons of concentrated copper daily when it becomes fully operational.
A significant impact
The boom in mining and mineral production has had a significant effect on Iran. First, it has contributed positively to its economy. For example, mineral exports have increased threefold from 1990 to 1993.
The potential for continued expansion of the mining sector is enormous. In May, 1993, Vice President Hassan Habibi inaugurated Iran’s first gold extraction mill in Mooteh, Isfahan province. The Middle East Magazine reports, “The mines and metals Minister, Mohammed Mahluji, says that to date some 63 potential gold mines have been identified in the country, but due to lack of know how, they had not been exploited.” According to the Minister, the gold extraction plant in Mooteh is capable of producing 500 kilograms from 200,000 tons of gold deposits annually.
The second effect of developing the mining industry is to improve Iran’s base for manufacturing her own military hardware. Previously, Iran could mine and process only lead and zinc. The additional materials and the greater expertise in manufacturing processes move her closer to being her own arms maker.
Third, one of the most interesting aspects of this new activity is how Iran has used it to strengthen political ties within the region. The Middle East Magazine reported “Iran recently signed a number of letters of understanding for industrial, mineral and economic cooperation with Ukraine, including one covering mine exploration, and followed up with a similar accord with Turkmenistan. In addition, Tehran has offered to help provide industrial expertise to Moldova.”
The hand of God is readily seen in these recent developments. The combination of a militarily strong Iran with her links to the nations of the North conform exactly to what we expect from Biblical prophecy.
The Origin of the Organic World – Part One