Exclusive: Iran-backed groups corner Iraq’s postwar scrap metal market – sources

Exclusive: Iran-backed groups corner Iraq's postwar scrap metal market - sources

Exclusive: Iran-backed groups corner Iraq’s postwar scrap metal market – sources

MOSUL, Iraq (Reuters) – The wrecks of cars utilized by Islamic State militants as automotive bombs and different metal particles left via the struggle in Iraq at the moment are serving to fund their Iran-backed enemies, trade sources say.

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Scrap and remnants of struggle lie close to the destroyed Grand Mosque of al-Nuri within the Old City of Mosul, Iraq February 2, 2019. Picture taken February 2, 2019. REUTERS/Khalid al-Mousily

Shi’ite Muslim paramilitaries that helped Iraqi forces force the Sunni IS out of its ultimate strongholds in Iraq have taken regulate of the thriving business in scrap metal retrieved from the battlefield, in keeping with scrap sellers and others acquainted with the business.

Scrapyard homeowners, metal plant managers and legislators from across the town of Mosul, the de facto IS capital from 2014 to 2017, described to Reuters how the Popular Mobilisation Forces (PMF) have made tens of millions of bucks from the sale of the rest from wrecked automobiles and broken guns to water tanks and window frames.

The PMF deny involvement. “The PMF does not have anything to do with any trade activities in Mosul, scrap or otherwise,” a PMF safety legitimate in Mosul mentioned.

But interviews at scrapyards and with the ones within the trade corroborate accounts via lawmakers that the militias oversee or direct the shipping of scrap, which is then melted down to be used in construction fabrics, and switch a big benefit.

These sources say PMF groups use their rising affect — and every so often, in accordance to a few witnesses, intimidation — to corner the market and regulate shipping of metal from broken towns equivalent to Mosul to Kurdish-run northern Iraq the place it’s purchased and melted into metal.

Little of that metal is used to rebuild spaces devastated via combating. It is going as a substitute to Kurdistan or southern Shi’ite provinces, they are saying.

The business is a method through which Shi’ite paramilitaries, which at the moment are a part of the Iraqi safety forces, are reworking their regulate of land that was the IS “caliphate” right into a supply of wealth.

The expanding affect of the PMF umbrella workforce, whose maximum tough factions are subsidized via Iran, is being worried the United States and Israel as stress mounts with Iran, which is securing its sway over a hall of territory thru Iraq and Syria to Lebanon.


At a scrapyard ultimate month close to a PMF checkpoint at the fringe of Mosul, staff taken care of thru metal from a pile of auto portions, electric turbines and overwhelmed water tanks.

The scrapyard proprietor mentioned PMF groups purchase tonnes of scrap on a daily basis and promote it in Kurdish spaces for as much as double the cost — or permit investors to take action in alternate for a reduce of the benefit, for passage thru spaces they regulate.

“This yard is controlled by one PMF faction, that one across the road by another,” he mentioned. He declined to offer his identify for concern of reprisals via militias.

“I’m only allowed to sell to specific traders – they’re either members of the militia or have a deal with them. You can’t get scrap metal through checkpoints without a deal with the PMF,” he mentioned.

Ahmed al-Kinani, a lawmaker representing the political arm of Asaib Ahl al-Haq, a formidable paramilitary workforce that has 15 seats in parliament, blamed such business on folks “who benefit from the destruction of struggle.

“The PMF would no longer settle for this. If there are particular person, remoted instances, then the state must step in,” he mentioned.

But the scrapyard proprietor, who mentioned he buys scrap for 100,000 Iraqi dinars ($84) in keeping with tonne and sells it for 110,000 dinars, mentioned the PMF or investors they paintings with promote it in Kurdistan for as much as $200 a tonne. He mentioned the PMF had taken regulate of his backyard.

“One day two men arrived in a pick-up truck, carrying pistols, and told me to lower the price and sell only to them. I comply – they have guns,” the landlord mentioned.

A employee on the scrapyard reverse described a equivalent device and costs, even if he didn’t point out intimidation.

Inside Mosul, scrap is purchased much more cost effectively. One boy mentioned he offered for 50 dinars in keeping with kilo ($42 in keeping with tonne) to a scrapyard at Mosul’s ruined Old City. The web site belongs to a PMF workforce, he and a number of other different citizens mentioned.

The backyard contained metal rods and roofing from destroyed constructions, and residential home equipment. The wreckage of auto bombs and destroyed cars, lots of which have been taken out of the Mosul space within the months following the fight that led to 2017, now make up much less of the scrap.

In Anbar province, west of Baghdad, drivers and investors mentioned the PMF held a heap of destroyed automobiles this is visual from the principle freeway close to Falluja, the place combating was once intense in 2015.

The investors mentioned the PMF or corporations the militias have agreements with rent drivers to move metal from Anbar province to Kurdistan, or south to Basra.

Alaa, a driving force who used an alias, mentioned permission for transporting scrap lay with the PMF. Lawmakers and investors mentioned the PMF every so often transported scrap extra brazenly in their very own vans. Reuters may just no longer examine this.


The volumes of scrap being moved have decreased because the speedy aftermath of the struggle with IS, however tens of millions of tonnes of particles, together with metal, nonetheless clutter devastated spaces.

Mohammed Keko, the executive of a metal plant close to Erbil within the Kurdish area, mentioned he had bought at least 300 to 400 tonnes of basically Mosul scrap on a daily basis because the town was once recaptured from IS.

“At the moment we buy for $150 to $160 per tonne. It depends what traders have to pay for it,” he mentioned.

Keko mentioned the PMF managed shipping of scrap, which every so often was once halted for months whilst militias disagreed on costs or investors may just no longer pay sufficient to get shipment thru.

The metal development rods that Erbil Steel Co makes from scrap are offered in part within the Kurdistan area however basically in southern Shi’ite provinces of Iraq, Keko mentioned.

Nawfal Hammadi al-Sultan, governor of Nineveh province the place Mosul is the capital, additionally mentioned the PMF purchase scrap however pushed aside allegations via some native lawmakers that he lets in the paramilitaries to regulate the business.

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Slideshow (13 Images)

“They buy it (but) there’s no law that forbids anyone to buy scrap metal,” he mentioned.

Lawmakers say the metal will have to return to the Sunni spaces recaptured from IS to lend a hand reconstruction. They in part blame the removing of scrap metal on the market or use in different provinces for the sluggish tempo of rebuilding.

“It’s stealing material that belongs to the state or people,” mentioned Mohammed Nuri Abed Rabbo, a former member of parliament. “The PMF make double whatever they or their traders buy the scrap for. We’re talking hundreds of thousands of tonnes.”

Reporting via John Davison; further reporting Kamal Ayyash in Falluja, Ahmed Rasheed in Baghdad, Editing via Timothy Heritage


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