EghtesadOnline: Mineral companies affiliated to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) joined hands Wednesday to set up a fund for supporting listed mineral companies.
Addressing CEOs of major mineral companies, Abbas Na’eemi, an IMIDRO deputy chief, said the fund will be set up jointly by mineral companies to help “protect IMIDRO’s assets in the bourse”.
The fund is due to be launched with a nominal capital of 300 trillion rials ($1.3 billion), according to the IMIDRO news portal.
Na’eemi spoke of a plan to form a special ad hoc committee to monitor the performance of listed mineral companies and safeguard their interests from volatility in share prices.
“The committee will hold extraordinary meetings if the index of mineral shares plunges more than 10%.”
As a major state-owned holding company, IMIDRO has eight major companies and 55 subsidiaries involved in the steel, aluminum, copper, cement and mineral sectors.
Among its subsidiaries are the National Iranian Steel Company, National Iranian Copper Industries Company, South Aluminum Company and the Iran Minerals Production and Supply Company.
The decision comes on the heels of the sharp plunge in the Tehran stock market with relentless sell-off sweeping through almost all share categories, including those of mineral and base metal companies.
The benchmark of Tehran Stock Exchange, TEDPIX, lost more than 22% during a deep downturn that lasted eleven trading sessions.
The market gained some composure on Tuesday after the main shareholders and institutional buyers were asked to buy government shares and regulator was instructed to pump money into the sagging bourse.