Plans to Build Steel Plants in Coastal Areas
Economy, Business And Markets

Plans to Build Steel Plants in Coastal Areas

The government has decided to build new steel plants near the Persian Gulf and Oman Sea with a total capacity of 10 million tons a year, a deputy minister of industry, mine, and trade said  
Mehdi Karbasian pointed to the steel plants' basic need for water and announced that the country will build new facilities near the port city of Bandar Abbas and other coastal regions in the country's south.
Karbasian, who is also the head of Mines and Mining Industries Development and Renovation Organization (IMIDRO), added that the government has made the new decision in the wake of the water crisis in the country.
The decades-long water crisis in Iran has put pressure on the country's steel manufacturing companies.
More than 128 cubic meters of water is required to produce one ton of steel, and based on the country's target to annually produce 55 million tons of steel by the end of the Fifth Five-Year Economic Development Plan (March 2012-March 2016), more than 7 billion cubic meters of water will be needed by 2016, which is more than 8% of the total amount of water annually used in farming.
The Rouhani administration says the previous administration did not take water considerations in many of the steel production projects they green-lighted, adding that the ministry of mine, industry, and trades will revise the location of those projects.
Many of the current steel manufacturing plants have faced major challenges in the wake of nationwide water crisis. The recent running dry of the Zayanderud River in the central city of Isfahan, for instance, has caused serious concerns regarding the activity of the steel companies Zob-e Ahan and Foolad-e Mobarake, which together used to consume 7% of the rivers water.


Short URL : http://goo.gl/qFAzpQ

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...