Iraq is moving to overhaul its mining framework with a new draft mining law designed to revitalise the country’s long-neglected industrial-mineral sector and establish a transparent, investment-ready governance system. Long reliant on hydrocarbons, Baghdad is now looking to minerals such as phosphates, silica, sulphur, limestone and gypsum to diversify state revenues, support infrastructure growth and stimulate domestic manufacturing.
The proposed legislation introduces clearer licensing pathways, competitive tendering processes and standardised fiscal terms aimed at replacing fragmented and opaque permitting practices. Iraq’s current mineral regime is widely seen as outdated, marked by inconsistent approvals and limited environmental oversight. The new law seeks to modernise governance, reduce discretionary decision-making and align the sector with international mining standards.
Fiscal predictability is a central pillar of the reform. Defined royalty structures, taxation rules and cost-recovery mechanisms are intended to provide investors with long-term visibility while ensuring the state captures fair value from mineral development. Greater contractual clarity is also expected to lower the risk of disputes and encourage sustained capital investment.
Industrial minerals are expected to take early priority. Iraq’s ongoing construction drive and growing demand for cement, glass, fertilisers and chemical inputs offer a strong domestic market capable of supporting near-term projects. Over the longer term, export-oriented development—particularly in phosphates and sulphur—could create additional revenue streams and regional trade opportunities.
Significant challenges remain. Security concerns, infrastructure deficits and bureaucratic inertia continue to weigh on investor sentiment. Industry participants stress the importance of regulatory continuity, dependable power supply and upgraded transport networks to translate legal reform into operational success.
If the new mining law is effectively implemented and supported by institutional reform, Iraq could begin building a diversified mineral economy that complements its oil sector and contributes to broader economic stabilisation. The forthcoming legislative process will be a critical test of the country’s ability to turn geological potential into a functioning industrial base.
