Two iron ore processing units, namely Sangan Iron Ore Concentrate Plant and Sanabad Pellet Plant both located in city of Sangan in Khaf County of northeastern Khorasan Razavi Province, were inaugurated on Thursday, by President Hassan Rouhani via videoconferencing.
The first phase of Sangan Mineral and Industrial Company’s Sangan Concentrate Plant has a capacity of producing 5 million tons of iron ore concentrates per year. The plant has created 500 direct jobs.
Managing director of Sangan Mineral and Industrial Company, also known as SIMIDCO, Ali Emraei, also told ILNA that 38 trillion rials ($212.29 million) have been invested in this project.
Sanabad Tose'e Faragir Industrial and Mineral Company’s Pellet Plant has a production capacity of 2.5 million tons annually, Mehr News Agency reported.
Developed by National Development Industrial and Mineral Company, 13 trillion rials ($72.62 million) have been invested in this project. It has created 200 direct jobs.
The two projects were inaugurated via videoconferencing at the site of Sanabad Tose'e Faragir Industrial and Mineral Company.
"The development and inauguration of projects across the country are continuing despite harsh sanctions and pressure on Iranian economy," President Rouhani said during the inauguration ceremony.
Addressing the inaugural ceremony, caretaker of Industries Ministry, Hossein Modarres Khiyabani, noted that the investment for Sanabad Pellet Plant was jointly made by Khuzestan Steel Company and retirement funds of banks.
A total of 200 mineral projects with a total investment of 1.69 quadrillion rials ($9.44 billion) and job creation of 41,000 are expected to be completed and inaugurated by the end of the current fiscal year (March 2021)
The plant will increase Iran’s pellet production to 54 million tons, he added.
Two other industrial projects related to home appliance production in Isfahan Province were also inaugurated by President Rouhani on Thursday.
According to reports from the Ministry of Industries, Mining and Trade, 200 mineral projects with a total investment of 1.69 quadrillion rials ($9.44 billion) and job creation of 41,000 will be completed and inaugurated by the end of the current fiscal year (March 2021).
Chairman of Iranian Mines and Mining Industries Development and Renovation Khodadad Gharibpour also said during the ceremony that with the inauguration of SIMIDCO’s Pellet Plant in Sangan, investments made in Sangan now exceed $1.4 billion.
Another iron ore concentrate plant is expected to come on stream in Sangan Mineral and Industrial Company by the fiscal yearend.
Targeting Annual Steel Production Goal of 55m Tons
Referring to advancements in Iranian steel industry, the president told Shata News Agency, affiliated with the Industries Ministry, that all steel sectors, including concentrate, direct-reduced iron and pellet, are developing steadily as the country’s steel industry is targeting its 55-million-ton-per-year production goal.
Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports per year by 2025.
Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the current Iranian year (March 20, 2021), while the actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity, according to the Iranian Mines and Mining Industries Development and Renovation Organization.
IMIDRO also expects direct-reduced iron production capacity to reach 37.2 million tons by the fiscal yearend, while the actual production is estimated to reach 33.6 million tons to utilize 90% of its nameplate capacity.
Pellet production capacity is expected to reach 66.4 million tons, as actual production is predicted to total 55.3 million tons, realizing an 83% of the capacity.
Concentrate production capacity is estimated to hit 68.5 million tons, while the actual production would reach 58.1 million tons, realizing 85% of the capacity by March 20, 2021.
Iran's current steel production capacity stands at over 35 million tons per year.
Iranian steelmakers saw the third highest growth in the world in 2019.
According to the World Steel Association, about 31.9 million tons of crude steel were produced in Iran last year to register a 30.1% rise compared with the year before.
The growth in production ranks third after Libya with 53% and Vietnam with 43.2%.
Iran was the world’s 10th biggest crude steel producer in 2019.
The country is placed between Brazil (ninth) with 32.23 million tons of production and Italy (11th) with 23.24 million tons.
Crude steel is defined as steel in its first solid (or usable) form: ingots and semi-finished products (billets, blooms and slabs). This is not to be confused with liquid steel, which is steel poured.
Notably, Iran was the second biggest producer in the world with 27.73 million tons of DRI production in 2019, registering a 7.7% year-on-year growth.
India, Iran's primary rival in DRI output, increased its 12-month production by 7.7% YOY to 36.85 million tons.
Iron Ore Concentrate Output Rose 4% to 47.3m Tons
A total of 47.3 million tons of iron ore concentrate were produced in Iran in the last Iranian year (March 2019-20) to register a 4% growth compared with the corresponding period of the year before.
Golgohar Mining and Industrial Complex accounted for 16.01 million tons of the total output (up 3% YOY), followed by Chadormalu Mining and Industrial Complex with 9.66 million tons (up 9% YOY), Middle East Mines and Mining Industries Development Holding Company with 5.26 million tons (up 5% YOY), Iran Central Iron Ore Company with 4.67 million tons (down 12% YOY), Goharzamin Iron Ore Company with 4.53 million tons (up 2% YOY), Opal Parsian Sangan with 3.03 million tons (up 1% YOY), National Development Industrial and Mineral Co. with 2.47 million tons (up 54% YOY), Sabanour Mining and Industrial Development Company with 1.13 million tons (up 2% YOY) and Jalalabad Iron Ore Complex with 510,027 tons (down 2% YOY).
Production of iron ore in the form of fines/lumps totaled 3.93 million tons during the 12-month period, going down 37% YOY.
Sabanour Mining and Industrial Development Company accounted for 1.96 million tons of the total output (up 20% YOY), followed by Iranian Central Plateau Iron Ore Mines Complex with 816,010 tons (down 18% YOY), Chadormalu Mining and Industrial Complex with 500,000 tons (up 30% YOY), Iran Central Iron Ore Company with 402,245 tons (down 71% YOY) and Sangan Iron Ore Complex with 247,477 tons (down 86% YOY).
The production of iron ore pellet hit 41.77 million tons during the same period, unchanged YOY.
Golgohar was the largest producer with 12.15 million tons (up 4% YOY), followed by Mobarakeh Steel Company with 6.79 million tons (down 9% YOY), Khouzestan Steel Company with 5.85 million (down 7% YOY), MIDHCO with 5.67 million tons (up 15% YOY), Chadormalu with 3.62 million tons (up 2% YOY), Opal Parsian Sangan with 3.21 million tons (down 12% YOY), Sangan Mineral and Industrial Company with 2.46 million tons (down 14% YOY), Khorasan Steel Company with 1.55 million tons (up 87% YOY) and Sabanour Mining and Industrial Development Company with 428,926 tons (up 33% YOY), according to latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization.
