Economy, Business And Markets

Consortia to Help Check Steel Sector Shortages

Consortia to Help Check Steel Sector ShortagesConsortia to Help Check Steel Sector Shortages

Iranian Mines and Mining Industries Development and Renovation Organization, IMIDRO, has picked three consortia to join projects to produce iron concentrate and iron ore pellets, reported Fooladnews.

The projects were put out to tender by IMIDRO based on the country’s 44th Constitutional Article which encourages the role of private sector in economic activities. The three consortia, all formed by the private sector companies, are enjoying consultation contributions from European and Chinese firms and are technically and executively capable enough to implement the strategic projects, said Mehdi Karbasian, the IMIDRO head.

The projects include one iron ore pellet manufacturing unit with an annual production capacity of 5 million metric tons per annum as well as a 2.4-million-ton facility to produce iron ore concentrate. The manufacturing units will be built adjacent to Sangan iron ore mine, 300 kilometers away from the northeastern city of Mashhad.

One of the problems the country’s steel manufacturing industry faces is the serious shortage of raw materials like iron ore pellets, concentrates, and scrap iron. Mohammad Reza Nematzadeh, the minister of industry, mine, and trade, last month reiterated the country’s annual need for 6 million tons of iron ore pellets. The raw material, also known as granular iron ore, is crucial for the country, as numerous steel plants are on the list to be built, most of them on the Persian Gulf. The previous government initiated numerous steel projects in regions with severe water shortages which made the projects uneconomical.

Based on Iran’s 2025 Vision Plan, the country should produce 55 million metric tons of crude steel, however current production barely hits 20 million tons per year.