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Published with an Emphasis on the Strategic Position of Sadr Tamin’s Gold Projects
A global and national benchmark report on the gold industry has been published, examining the latest status of gold reserves, production and markets worldwide and in Iran, processing methods, and other key parameters in this specialized field, with particular emphasis on the strategic position of Sadr Tamin’s gold projects and their comparative advantages.
According to the Public Relations Department of Sadr Tamin Investment Company (TASICO), the Global and National Benchmark Report on the Gold Industry, prepared by Aqil Hagh-dadi, TASICO’s processing expert, is presented below.
Gold has long been recognized as a monetary base and an economic reserve for countries, playing a fundamental role in global financial stability and economic security. A large share of the gold extracted throughout history is currently held by central banks and national treasuries, serving as a reliable backing for the world’s currencies. Analyses indicate that the largest gold reserves are held by countries with the highest gross domestic product (GDP), highlighting the direct relationship between economic strength and gold reserves. Unlike many natural resources, gold is essentially non-destructive and fully recyclable; therefore, its extraction does not conflict with intergenerational interests, and all gold produced in the past and present can be reused in the future.
This report provides an executive summary of the key findings and results of studies on gold at the global, regional and national levels. Its primary objective is to assess the current position of Iran’s gold industry and compare it with global and regional benchmarks in order to identify existing gaps, challenges and development opportunities. Within this framework, the Kurdistan Gold Project is examined in particular as one of the country’s strategic projects, with the aim of clarifying its role in the balanced development of the gold industry and in strengthening Iran’s position in the global gold market.
As a strategic metal with unique physical and chemical properties, gold plays a role in the global economy that extends well beyond its use as a decorative commodity. This valuable metal is not only a foundation for monetary stability and central-bank reserves, but is also widely used in advanced electronics, aerospace, medicine and emerging technologies. In developed economies, the share of gold consumed for industrial applications is considerably greater relative to ornamental uses, underscoring its critical role in advanced technologies. Global economic and political uncertainties have increased the willingness of countries and investors to hold gold as a safe-haven asset. Central banks around the world have allocated a significant portion of their foreign-exchange reserves to gold in order to reduce inflationary and geopolitical risks. Statistics indicate that in recent years the share of central-bank gold reserves in international asset portfolios has been increasing.
At the same time, although global gold production has more than doubled over the past three decades, production growth is expected to be constrained in the coming years. Increasing environmental and social requirements, declining high-grade reserves and a reduction in new discoveries are directing the future of the gold industry toward smaller mines, advanced extraction technologies and smarter recycling of precious metals.
In the global market, gold supply comes from two main sources: mine production and recycling. While mine production depends on the volume of economically recoverable reserves, recycled supply is highly sensitive to changes in the global gold price. This dynamic has made the gold market one of the world’s most volatile yet resilient markets.
According to 2022$469 statistics, the total value of global gold exports was estimated at more than billion, making gold the world’s seventh most important traded commodity. More than 75% of this trade consisted of refined bullion, and countries such as Switzerland and the United Arab Emirates, leveraging advanced refining and standardization technologies, have become major global centers for refining and exporting gold bullion. This demonstrates that gold reserves alone do not constitute a competitive advantage; rather, the development of recovery and processing technologies is what creates real value and enables countries to participate effectively in the global gold market.
Available data indicate that global gold production experienced limited fluctuations but an overall upward trend between 2019 and 2024. Global production stood at approximately 3,260 tonnes in 2019 and, following a temporary decline in 2020 to around 3,050 tonnes due to restrictions associated with the COVID-19 pandemic, resumed its upward trajectory, reaching approximately 3,300 tonnes in 2024. This trend indicates a relatively stable global gold supply in recent years, particularly as exploration and mining costs have increased and high-grade reserves have declined.
Figure 1: . Global gold production
Among producing countries, China ranks first with annual production of approximately 380 tonnes, followed by Russia (310 tonnes), Australia (290 tonnes) and Canada (200 tonnes). Other countries, including the United States, Mexico, Kazakhstan and Ghana, also account for significant shares of global production.
Figure 2. Gold production in the world’s leading gold-producing countries, together with Iran
Iran holds approximately 1.4% of the world’s gold reserves but accounts for less than about 0.4% of global mine production. Compared with countries with similar geological potential, such as Uzbekistan and Kazakhstan, there is a significant gap. Iran’s rate of reserve utilization is approximately one-fifth of the global average and is very low compared with countries such as China and Ghana. Accordingly, there is both substantial potential and an urgent need for a major expansion of mine gold production in Iran.
Overall, the distribution of global gold production shows that a large share of output is concentrated in a limited number of countries. China, Australia, Russia, Canada and the United States, for example, account for significant portions of annual global gold production.
Since 2020, the global annual average of newly discovered gold reserves has been approximately 3.5 million ounces, compared with an estimated annual average of about 5.5 million ounces in previous decades. This trend indicates a decline in the rate of discovery of economically viable gold reserves worldwide, largely due to earlier advanced exploration, rising costs and reduced access to high-potential areas.
Figure 3. Distribution of gold reserves worldwide
Table1: . Reserve utilization rate in Iran and worldwide
| No. | Country | Gold reserves (tonnes) | Mine gold production (tonnes, 2024) | Utilization rate (%) |
| 1 | Ghana | 1,000 | 130 | 13 |
| 2 | China | 3,000 | 380 | 12.6 |
| 3 | Mexico | 1,400 | 130 | 9.2 |
| 4 | Canada | 2,300 | 200 | 8.6 |
| 5 | United States | 3,000 | 160 | 5.3 |
| 6 | Peru | 2,300 | 100 | 4.3 |
| 7 | Indonesia | 2,600 | 100 | 3.8 |
| 8 | Russia | 11,100 | 310 | 2.7 |
| 9 | Australia | 12,000 | 290 | 2.4 |
| 10 | South Africa | 5,000 | 100 | 2 |
| 11 | Iran | 800 | 7–12 | 1.5 |
| World | 59,000 | 3,300 | 5.59 | |
Table 2. Global gold benchmark
| Indicator | Description | Source |
| Number of active mines | Approximately 1,000 | USGS |
| Total global production | 3,300 tonnes | USGS |
| Average extraction cost | $1,250–1,400 per ounce | Metals Focus, WGC |
| Successful exploration rate | 25–35% | S&P Metals |
| Price forecast to 2040 | 5% annual price increase | WGC |
| Proven global reserves | 59,000 tonnes | USGS |
At the national level, despite its prospective geological zones, Iran is not yet among the world’s major gold producers. According to official statistics, national gold production was recorded at approximately 7 tonnes in 2023, while unofficial estimates indicate production of more than 11 tonnes in the same year. This discrepancy suggests that part of gold production is not recorded within the formal supply chain and that a significant gap remains between the country’s geological potential and actual production.
In recent years, as accessible reserves have been identified and extracted, the rate of discovery of new reserves in Iran has also declined. Nevertheless, Sadr Tamin Investment Company has identified promising areas such as the Pars-6 prospect. In recent years, 28 gold discovery certificates have been registered across 11 provinces. Among them, West Azerbaijan and Kurdistan provinces, with six and five discovery certificates respectively, account for larger shares of the registered exploration certificates. The Kharastan–Bidaster discovery certificate in Sistan and Baluchestan Province contains the largest registered reserve among these exploration certificates. If exploration activities in this area continue over the next two years, a significant addition to Iran’s gold reserve portfolio is expected.
The exchange rate is one of the most influential factors in reducing the sustainable cost of gold production. Since gold is priced according to global rates in U.S. dollars, an increase in the exchange rate reduces the dollar value of domestic production costs. Combined with factors such as relatively low energy and fuel prices, this has placed Iran among the countries with the lowest sustainable gold-production costs.
However, countries such as Australia and South Africa continue to have lower final gold-production costs than Iran due to higher ore grades and the simultaneous production of valuable by-products.
The average global gold price in 2025 was approximately $4,000 per ounce. Based on reports and analyses published by leading international institutions, including the World Gold Council (WGC), the long-term outlook for gold prices remains upward. The Council has forecast average annual gold-price growth of approximately 5% through 2040 (according to a WGC forecast, the gold price is expected to reach approximately $4,300 per ounce in 2027). Some analysts, including Jim Rickards and Robert Kiyosaki, have presented considerably more bullish forecasts, suggesting that gold could reach $27,000 and $15,000 per ounce, respectively. Although such forecasts may initially appear unrealistic, the historical experience of the 1970s demonstrates that multi-fold increases in gold prices are entirely possible under conditions of stagflation and geopolitical volatility.
Figure 4. Gold price movements over the past 20 years
Cyanidation is currently recognized as the dominant industrial method for gold extraction worldwide. Due to its significant technical and economic advantages over other metallurgical options, cyanidation has held a central position in gold-production technology for more than 110 years. Over the past two decades, more than 90% of the world’s gold production has been recovered using this method, and among the hundreds of operating gold-processing plants, only a small number operate without cyanidation. This trend is expected to continue in the coming years because the process offers significant advantages in recovery, sustainability and operating costs compared with alternatives such as thiosulfate and thiourea.
Figure 5. General process for mine gold production
Cyanidation is based on dissolving gold in an alkaline cyanide solution. In this process, gold is extracted from ore as a soluble gold-cyanide complex. The main stages can be summarized as follows:
Crushing and grinding: Gold ore is first crushed and ground to an appropriate particle size to increase the surface area available for the chemical reaction.
Cyanidation: The resulting pulp is treated with a dilute sodium cyanide (NaCN) solution in an alkaline environment, typically maintained with lime (CaO). Under these conditions, gold dissolves as a soluble gold-cyanide complex according to the reaction indicated below:
Gold recovery from solution: Gold is recovered from the solution using one of two principal methods: adsorption onto activated carbon (CIP or CIL), or precipitation with zinc (the Merrill–Crowe process, which is more commonly used for ores with high silver content). In the activated-carbon adsorption process, gold accumulates on the surface of the activated carbon and is subsequently recovered as metallic gold during elution and electrowinning.
Smelting and casting: Finally, the gold is melted into doré bars and sent to refining units for final purification.
Because of its high recovery rate (more than 90–95%), appropriate operating costs and suitability for large-scale industrial applications, cyanidation remains the principal and most economical gold-processing method worldwide.
The following table presents 2024 gold production, proven reserves and average gold-production costs in several important regional countries, including Kazakhstan, Uzbekistan and Iran. As shown, Kazakhstan and Uzbekistan, with substantial gold reserves of 900 and 1,800 tonnes respectively, are among the region’s major producers.
Table 3. Gold reserves and production in key regional countries
| Country | Production 2024 (tonnes) | Proven reserves (tonnes) |
| Kazakhstan | 130 | 900 |
| Uzbekistan | 120 | 1,800 |
| Iran | 7–12 | 800 |
Despite its extensive geological diversity and structural variety, Iran has significant potential for gold exploration and extraction. In recent years, through programs to identify and explore mineral zones, numerous mines have been identified and brought into operation across the country.
Because Iran is located on the global gold mineralization belt, it has very high potential to develop and increase gold-production capacity. To date, 74 gold deposits have been identified in the country. Among the most important and well-known are Zarshuran and Agh-Dareh in West Azerbaijan Province; Sarigoni in Kurdistan Province; Mouteh in Isfahan Province; Kuh-e-Zar in Razavi Khorasan; Kharouna in East Azerbaijan; and Madofti in Sistan and Baluchestan. Based on available estimates, Iran’s total identified gold reserves amount to approximately 800 tonnes of contained gold, comprising proven and probable reserves. The figure below shows gold mineralization zones and prospective areas across the country, demonstrating the considerable scale of Iran’s exploration and development potential in this field. This section provides a comprehensive overview of the status, capacity and geographical location of Iran’s gold mines and is intended to compare Iran’s position with regional and global producers. The following table lists Iran’s most important gold reserves and mines based on information recorded in the 1400 (2021/22) Gold Master Plan, prepared by the Mineral Production and Supply Company, and the 1402 (2023/24) study prepared by the Research Center of the Islamic Consultative Assembly.
It should be noted that the Kurdistan Gold Plant (Qolqoleh Mine) is one of the strategic projects currently under construction in western Iran. Once operational, it is expected to significantly increase the country’s gold-production capacity and improve the geographical balance of gold-mine development in Iran.
Figure 6. Geological zones and areas prospective for gold mineralization
Based on a comparison of Iran’s major gold mines, the mines managed by Sadr Tamin Investment Company—including the Madofti Gold Mine and Qolqoleh Gold Mine—rank first in the country in terms of proven and probable gold reserves. Together, these two mines (and even Madofti alone) account for the largest share of Iran’s identified gold reserves and have the potential to supply a substantial portion of the country’s gold production in the coming years. With the implementation of Sadr Tamin’s gold projects, Iran’s gold production could increase from 12 tonnes to approximately 18 tonnes per year by 1410 (2031/32), while the country’s share of global production could rise from 0.4% to approximately 0.6%. Once the two Madofti and Qolqoleh processing plants are fully operational, Sadr Tamin Investment Company’s share of national gold production is expected to approach 50%.
The Madofti Gold Mine, one of Iran’s strategic mines, is currently the primary source of feed for the Taftan Gold Processing Plant. The plant currently operates with an annual capacity of approximately 500 kilograms of gold, while an expansion project is under way to increase capacity to approximately 1,500 kilograms per year. In addition, a new gold-processing plant with an annual capacity of 5 tonnes is currently in the design and equipment-procurement stages. Once operational, it would create a significant increase in annual gold production.
Based on current planning, exploration programs under way and a 10-year outlook, it is projected that, following completion of exploration in the company’s concession areas, the proven and probable reserves of the Madofti Gold Mine and other areas under the company’s control could exceed 200 million tonnes of ore with a grade of more than 1 gram per tonne.
Under this scenario, the company’s total contained gold is estimated at approximately 260 tonnes. Based on comparisons with the world’s major gold mines, if these estimates are realized, Madofti would rank among the world’s top 10 mines in terms of gold reserves. This outlook underscores Madofti’s strategic position in the future of Iran’s gold industry and its key role in increasing the country’s share of global gold reserves and production.
The successful-drilling rate in ore is one of the most important key performance indicators during the mineral exploration stage. Compared with peer mines, including the Pani Mine in Indonesia, an acceptable level for this indicator is generally considered to be above 30%. In the Madofti Gold Mine projects, the average rate has exceeded 85%, indicating high drilling efficiency and a high level of accuracy in identifying prospective areas.
The Kurdistan Gold Mine, as one of the country’s strategic and national projects, has been designed and implemented to support the development of western Iran and optimize the region’s geological potential. Beyond its economic role, the project is also significant from a geo-economic perspective: its development will activate the country’s western mining corridor and shift the geographical balance of gold production from the northwest toward western Iran. In addition, the project has been designed following comprehensive environmental, geological, geotechnical and hydrological studies, as well as tailings-storage-site selection studies, conducted by reputable engineering consultants, with a zero-cyanide-leakage approach.
All national and international environmental standards have been observed in the design and implementation of the Kurdistan Gold Plant. The facility is recognized as the first gold-processing plant in the country equipped with a cyanide detoxification (Detox) unit. The plant has obtained all required environmental permits from the relevant regulatory authorities, and field performance-monitoring assessments have reportedly exceeded expectations. Continuous monitoring of pollutants is carried out through biometric systems and smart online sensors, supporting assurance of the environmental integrity of the surrounding area.
The tailings dam and storage facility have been designed using a dry-stack tailings system, impermeable geomembrane layers and protective geotextiles, seepage-control drainage systems, and a carefully engineered dam structure incorporating the climatic and geological conditions of Kurdistan Province. These measures are intended to prevent cyanide or other chemicals from entering local soil and water resources. The use of advanced processing technologies and domestically manufactured equipment meeting high quality standards has also positioned the plant as a model and leading facility in safe and environmentally responsible gold production in Iran.
From a social and economic development perspective, the Kurdistan Gold Project is being implemented as one of the province’s leading economic projects, with the objective of creating sustainable employment and developing local infrastructure. According to estimates, the project will directly create more than 500 sustainable jobs. Kurdistan Gold Mining Development Company has also undertaken extensive social-responsibility initiatives in the area, including:
Implementation of a wastewater collection and treatment project for upstream villages of the Naraghvis Dam, with an investment of IRR 55 billion (under implementation through 1406/2027–28)
Renovation of schools and mosques, and construction and paving of rural roads
Support for cultural and sporting events at the provincial and Saqqez county levels
Improving drinking-water quality in northwestern areas of the country through environmental infrastructure projects
In addition to all these advantages, Sadr Tamin Investment Company, as one of the subsidiaries of the Social Security Organization (SHASTA), plays a distinctive role in the public-benefit cycle. Profits generated from gold extraction and production ultimately return to pension funds and welfare services benefiting millions of people across the country. Thus, the benefits of this project extend beyond the regional and industrial levels to the national and social spheres, contributing to public welfare and the sustainability of Iran’s social-security system.
Taken together, these measures demonstrate that the Kurdistan Gold Mine is becoming a model of sustainable, safe and responsible mining in Iran. In addition to supplying part of the country’s gold requirements, the project is expected to stimulate economic activity, improve local welfare and strengthen public confidence in modern mining in Iran.
The Kurdistan Gold Plant will use cyanidation to process gold, a method currently employed at more than 90% of gold-processing plants worldwide. The method was selected because of its high recovery rate, industrial-scale reliability, lower operating costs and, most importantly, because it is the only economically viable and efficient option for processing ore from the Qolqoleh Gold Mine compared with other recovery methods. Cyanidation is therefore recognized as the global standard for gold production and is used at most reputable processing facilities worldwide.
Nevertheless, many public concerns about cyanide stem from insufficient information or misconceptions. Accordingly, the following measures have been given high priority in the design and implementation of the Kurdistan Gold Plant to safeguard public health and the environment:
Closed and controlled systems: All cyanide-bearing streams are managed within closed circuits to minimize any accidental contact with the environment or personnel.
Detoxification unit (Detox): Leaching effluent is treated through specialized detoxification units before disposal or recycling so that cyanide concentrations are reduced to very low levels in accordance with national and international standards.
Secure tailings storage: The tailings-storage facility incorporates multilayer geomembrane and geotextile liners, seepage-control drainage and engineered structures to prevent the migration of any material into soil or groundwater.
Continuous and transparent monitoring: Online water- and soil-quality monitoring systems, sampling stations and regular reporting to regulatory authorities enable rapid detection and response to any deviation.
Standards and permits: Project design, construction and operation are carried out in accordance with environmental regulations and permits issued by the competent authorities, as well as applicable international standards.
Engagement with the local community: Transparent communication, consultation meetings with residents and social-responsibility initiatives covering water, health, education and employment are priorities intended to address concerns and strengthen public trust.
Overall, the objective is to produce gold while fully complying with environmental regulations and providing the highest possible level of protection for community health. Global experience has shown that, with careful engineering design, continuous monitoring, detoxification units and secure tailings storage, cyanidation can be used safely. This is why the method is widely accepted and applied under controlled conditions around the world.
Sadr Tamin Investment Company has established a prominent position among Iran’s gold exploration and mining operators by leveraging a set of distinctive advantages. The most important include:
Access to promising and reliable exploration areas in Kurdistan and Sistan and Baluchestan provinces places the company in a strategic position to develop some of the country’s richest mineral regions.
Being at the forefront of modern exploration methods and the use of advanced global technologies has increased the accuracy of reserve modeling and reduced exploration risks.
Strong financial and managerial backing enables the company to implement large-scale projects with high speed and long-term stability.
Strong technical capabilities and the use of efficient, specialized personnel in geology, exploration, mining and processing are other key factors behind the company’s success.
Together, these advantages have made Pars Tamin Mining Development Company one of the country’s leading and future-oriented players in the gold industry.
In the design and implementation of gold mining and processing projects, one of Sadr Tamin Investment Company’s main priorities is environmental protection and ensuring the full safety of operations. Accordingly, every stage of gold production—from mining through leaching and metal recovery—is carried out on the basis of international safety and environmental standards. The use of closed circuits in the leaching process, measures to prevent cyanide from entering soil and water resources, and continuous quality-monitoring systems are among the actions intended to ensure the environmental sustainability of the projects. Accordingly, the Kurdistan Gold Mine, which is being developed under this approach, is not intended to pose a threat to the environment; rather, through advanced technologies and rigorous process control, it can become a model of safe, responsible and environmentally compatible mining in Iran. This scientific and transparent approach can reduce public concerns while fostering constructive engagement and cooperation between the project and the local community. Despite initial public concerns about the word “cyanide,” the Kurdistan Gold Plant is expected to become one of Iran’s first successful examples of green and transparent mining.
This report was prepared to analyze the position of the gold industry at the global, regional and national levels and to define the position of Sadr Tamin Investment Company’s gold mines within this structure. The findings show that although Iran’s share of global gold production remains below 0.5%, the country has substantial geological and economic potential for a major expansion in gold production and industry development.
The gold benchmarking studies indicate that Sadr Tamin Investment Company is currently the largest player in Iran’s gold industry and controls a significant share of the country’s gold reserves and production. The two strategic mines, Madofti and Qolqoleh, with the largest proven and probable reserves, have established Sadr Tamin’s position at the top of Iran’s gold-mining sector. Through multiple development projects—including a new processing plant with a capacity of 5 tonnes of gold per year at Madofti, the Taftan Gold Plant with a capacity of 1 tonne per year at Madofti, and the Kurdistan Gold Plant at the Qolqoleh Mine with a capacity of 500 kilograms per year—the company will play a decisive role in meeting the country’s gold requirements in the coming years.
It should be noted that the Kurdistan Gold Mine, one of the national and strategic projects in western Iran, is under construction in full compliance with international environmental standards. The project is being implemented with a secure tailings dam and storage design, seepage-control systems and closed-loop processing circuits, following a zero-cyanide-leakage approach, and is designed to prevent threats to the region’s soil, water and environment. In addition to increasing national gold-production capacity, the project is expected to become a model of responsible and sustainable mining in Iran.
Taken together, these projects demonstrate that Sadr Tamin Investment Company is not only the holder of the country’s largest gold reserves, but is also shaping the future of Iran’s gold industry through an approach based on sustainable development, social responsibility and environmental protection. With the completion of the Madofti and Kurdistan development projects, Sadr Tamin’s share of national gold production is expected to increase to approximately 50%, positioning the company as a major gold-production hub in the Middle East.
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