Iran’s Jam Industrial Group and South Korea’s New Millennium Group have signed a memorandum of understanding on producing cable cars in Iran in a deal that could be worth an estimated $1bn, Islamic Republic News Agency reported on June 10.

With an eye on boosting its skiing and mountain tourism industries, and a plan to implement more cost effective mining operations, Iran is in dire need of hundreds of new cable car and cable-mounted operations.

“The [cable car development] programme will be financed through direct investment and with a banking guarantee from an Iranian bank,” said Jalil Makinehchi, managing director of Jam Industrial Group, a producer of a range of industrial products,

Phase one of the programme will reportedly begin in 2019, with several proposed cable car locations already pinpointed by the Iranian firm.

Hitherto, several Iranian cable car projects have been installed and maintained by European firms, mostly French.

One of the most popular gondola systems in Iran is located behind Tehran. Named Tochal Telecabin, it was installed by a wealthy Iranian industrialist prior to the Islamic Revolution in 1979.

The site has had several upgrades in recent years. Its Station 7 is at the peak of the Alborz mountain range at 3,500 metres above sea level. In winter it is the closest ski resort to the capital, with over 50,000 skiers and snowboarders making use of the attraction.

Iran has several other locations with cable cars, including tourist destinations by the Caspian Sea.