Economy, Business And Markets

Missing Links in Steel Sector

Missing Links in Steel Sector
Missing Links in Steel Sector

An official with the ministry of industry, mine and trade has suggested that tariffs must be imposed on the export of minerals, including iron ore, if the government wants to support domestic production in the mining sector and improve productivity.

Mohammad Fatemian, head of the ministry’s office for mining affairs, said earlier this week that the profit earned, in foreign exchange currency, from the export of minerals do not usually return to the banking system.

“Completing the raw material supply chain has been put on top of agenda and the lack of some elements in this chain have caused several problems for producers,” Fatemian said, speaking on the sidelines of an international trade fair for mining, mining industries, machineries, equipment and related industries, entitled ‘Iran CONMINE 2014’.

“Iron ore is among the basic minerals needed in the steel production chain, and can be processed within the country to create added-value,” he said.

Last year, Iran exported nearly 24 billion tons of iron ore worth $2 billion, 90 percent of which went to China.

 Officials at the ministry of industry believe that right policies can help channel liquidity to downstream industries, which are more likely to create jobs and stimulate growth.

Iran holds a potential 5.1 billion tons of iron ore exploitation reservoir, 2.8 billion tons of which are certainly exploitable.

The ministry has decided to issue licenses for new investors and is now carefully considering technical reports submitted to the office for mining affairs.

The 20-Year Vision has targeted a 55 billion-ton production of crude steel by 2025.

Last year the overall crude steel production in Iran stood at 15.6 million tons, up by 8.8 percent compared to one year prior.