OWNERSHIP OF MINERALS
Section 45 of the Constitution provides that the anfal (public properties), including minerals, are property of the state. Section 161 of the Constitution provides that minerals found within private property are property of the owner, and can be exploited according to the law.
This means that minerals in Iran are subject to both private and public ownership. However, private land ownership is limited by the terrain, which restricts how much land can be privately owned by individuals. Indeed, 49.7 per cent of the land in Iran is mountains and deserts; none of this is useable. Only 10 per cent of the country is used for agriculture, and is owned by farmers in small scales.[628]The first Mining Act was enacted by the Iranian Parliament in 1938. Section 2 of this Act provided that ‘minerals found in private property belong to the owner of the property’. However, Article 3 gave the right of exploitation of oil and precious materials, such as gold, silver, and diamonds to the government. Nevertheless, the owners of lands where these materials were found were able to enter into an agreement with the government to determine their interests. In 1998, the new Mining Act was enacted, and provided that exploration and exploitation of minerals shall only be permitted by the Ministry of Minerals (Articles 5-16).
IX.