Economy, Business And Markets

Iron Ore Concentrate Output Up 7%

Iron Ore Concentrate Output Up 7%Iron Ore Concentrate Output Up 7%

The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) said more than 25.7 million metric tons of iron ore concentrate was produced during the past Iranian calendar year (ended March 20).

According to IMIDRO, the production by four major iron ore concentrate companies including Golgohar, Chadormalu, Sangan, and ICIOC registered 7% growth compared to a year before, IRNA reported. During the 12-month period, the four companies produced an aggregate of more than 25.7 million tons of iron ore – as the raw material to produce steel.  The figure for the preceding year stood at 24.12 million tons.

Chadormalu, in the central Yazd Province, topped the list as it produced more than 40% of the amount which exceeded 10.3 million tons, followed by Golgohar in Kerman Province with 8.56 million tons.

The IMIDRO report added that eight mining companies managed to produce around 11 million tons of agglomerated iron ore last year.

The production growth comes while global prices for the iron ore witnessed a sharp 50% decline last year, encouraging the mining companies to process the iron ore and turn it to iron ore concentrate and iron ore pellet instead of exporting it as raw mineral. The government’s incentives and protective tariffs have also been effective in increasing the production of iron ore concentrate.

Based on the 2025 Vision Plan, the steel sector is required to produce at least 55 million tons of crude steel, which in turn calls for an increase in the production of concentrate and pellet within the next decade.