Iran’s proven iron ore reserves have currently reached 2.3 billion tons, while its total estimated reserves (proven plus probable) stand at 5 billion tons, according to Mehrdad Akbarian, the head of Iran Stone Association.
Iron ore reserves feed Iran’s burgeoning steel industry, whose production, supported by cheap energy, is on the rise, but the ever-increasing steel production will obviously deplete its reserves, according to a report published by the Persian daily Jahan-e Sanat last year.
Experts blame the output level and difficult exploitation and processing of the mineral substance for this matter. Some of the country’s open-pit iron ore reserves are already running out.
A total of 160 million tons of iron ore are needed to achieve the goal of the 20-Year Vision Plan (2005-25) of reaching 55 million tons of annual steel production. It is said that the current iron ore reserves will only meet the needs of the steel industry for the next 14 years.
The Supreme Audit Court of Iran has expressed concerns about the depletion of iron ore reserves.
“The depth of our explorations is not high and remains at 60-70 meters on average. Once we penetrate to a depth of several hundred meters, we will definitely find good reserves,” Akbarian was quoted as saying by IRNA.
“There are promising areas for iron ore reserves in central Iran, Lut Desert (Dasht-e Lut) and Yazd Province, and we hope that future generations will be able to tap into these reserves.”
The Iron Ore Association of Iran and other related groups have constantly stressed that the main part of the mining sector, i.e. the beginning of the production chain, has been neglected due to the imbalance in the steel production chain.
According to Saeed Asgarzadeh, secretary of the association, the country needs to see a big leap in iron ore exploration.
“Slow reforms and the slight increase in budget cannot meet exploration needs. We should note that the limited mineral resources can affect the economy, employment and cause other crises.”
Pointing to the need for tapping into deeper reserves, he said, “Experts believe that we must tap into underground reserves to resolve this problem. However, we do not have much experience in exploring underground reserves compared with other countries; it is necessary to seek such knowhow from others.”
Reza Jadidi, director of the Planning, Information Technology and Budget Office of the Geological Survey and Mineral Exploration Department of Iran, says that based on the number of exploration permits issued by the Ministry of Industries, Mining and Trade and the level of production and consumption of iron-based products by steel industries, the remaining reserves, without considering the parameters related to exploitation and processing efficiency, will last 31 years.
“But in view of the aforementioned parameters and the fact that hematite ores are not used properly due to processing difficulties, the remaining iron ore reserves would last for 14 years,” he said.
“These estimates of reserves have been derived in view of the current pace of exploration and identification of reserves. By not making any improvement in exploration, especially deep exploration, we will face a crisis in supply of raw materials needed by the mining industries, including those active in iron, lead, zinc, bauxite and gold mining.”
Noting that estimates regarding the reserves are optimistic, the official said, “The country need large-scale mining reserves and the identified small reserves do not meet the needs of industries. The crisis will be closer if we include the economic parameter of reserves. Most of the identified iron reserves are hematite ores, the processing of which is complex.”
Referring to the shallow depth of mining in Iran and the advantages of deeper exploration, Jadidi said, “Given the origin of minerals and types of ores in the country and based on geological and exploratory evidence, we expect to discover deep and large reserves, but it is important to pay special attention to the production cycle of basic geological and exploratory information as well as the application of new methods of deep exploration, including aerial geophysics and spectral data collection. This requires a change in the structure of financing and budgets of the Geological Survey and Mineral Exploration Department. It can be done through various joint projects to increase the efficiency of geological and exploration projects by building knowhow and reducing investment risk in the mining sector. Thus far, such changes have not taken place.”
According to Asgarzadeh, the cutoff grade of iron ore, as well as its type, which is now limited to magnetic iron ore, must increase to improve the upgrading and processing of hematite iron ore.
Cutoff grade is the minimum grade required for a mineral or metal to be economically mined. Material found to be above this grade is considered to be ore, while material below this grade is considered waste. The cutoff grade can be determined through a variety of methods, each of varying complexity.
“These developments will happen sooner or later, but the later we come to this understanding, the more we’ll lose our high-quality reserves. It is better for us to correct the prices as soon as possible and pay attention to the extraction processes. If we set the cutoff grade at 40%, the ore below 40% must be removed. The cutoff grade must be reduced to 20% to prevent waste,” he said.
The Sixth Iron Ore Specialized Conference is scheduled to be held on Jan. 29. This year’s event has been scheduled after a gap of few years due to the Covid-19 pandemic.
H1 Production of Upstream Steel Industry
According to the Iranian Mines and Mining Industries Development and Renovation Organization, a total of 24.73 million tons of iron ore concentrate were produced during the first half of the current Iranian year (March 21-Sept. 22), registering a 1% decrease compared with the same period of last year.
Golgohar Mining and Industrial Complex had the highest share of output by producing 6.63 million tons, 16% less than in the same period of last year.
Chadormalu Mining and Industrial Complex followed with 5.36 million tons (down 13% YOY), followed by Goharzamin Iron Ore Company with 3.14 million tons (up 32% YOY) and Middle East Mines and Mining Industries Development Holding Company with 2.88 million tons (up 3% YoY) of output during the period under review.
Other major producers included Iran Central Iron Ore Company with 2.13 million tons (up 7% YOY), SIMIDCO with 1.28 million tons (up 14%) and Sangan Khorasan Steel Company with 1.26 million tons (up 107% YOY).
The pellet output of major steel mills reached 25.22 million tons during the period, posting a decline of 2% compared with the same period of the previous year.
Golgohar was again the largest producer with 5.21 million tons (down 14% YOY), followed by Mobarakeh Steel Company with 3.78 million tons (up 5% YOY), MIDHCO with 3.05 million tons (up 4% YOY), Khouzestan Steel Company with 2.67 million tons (down 3%) and Sangan Khorasan Steel Company with 2.36 million tons (up 17%).
Other major pellet producers included Chadormalu with 1.82 million tons (up 7% YOY), Goharzamin Iron Ore Company with 1.75 million tons (down 4% YOY) and Opal Parsian Sangan with 1.56 million tons (down 12% YOY).
The production of direct-reduced iron stood at 16.61 million tons in H1, up 15% YOY.
Mobarakeh accounted for the largest share of the output with 3.98 million tons (up 16% YOY), followed by KSC with 1.83 million tons (up 15% YOY), Golgohar with 1.53 million tons (up 13% YOY), South Kaveh Steel Company with 971,007 tons (up 19% YOY), Chadormalu Steel Company with 922,816 tons (up 13% YOY) and Saba Steel Company with 808,624 tons (up 35% YOY).
DRI, also known as sponge iron, is produced from the direct reduction of iron ore in the form of lumps, pellets or fines by a reducing gas. It can be processed to create wrought iron.
Iran and India are the world’s biggest producers of direct-reduced iron.
