Economy, Business And Markets

First Private Sector Pelletizing Complex

First Private Sector Pelletizing Complex
First Private Sector Pelletizing Complex

The first iron ore pelletizing complex owned by the private sector will be inaugurated by March 2015, reported IRNA.

As many as six contractors and 230 people are working on the project, located in mineral and industrial special zone in the Southern Hormozgan province, Joobin Bakhtiari, the VP at Maad Koush Company has told the Iranian Steel Producers Association (ISPA).

The complex will, during the first phase, produce 1 million metric tonnes of iron ore pellets per annum, while the amount is set to increase to 5 million tonnes during the second development phase.

One of the problems the country’s steel manufacturing industry faces is the serious shortage of raw materials like iron ore pellets, iron ore concentrates, and scrap iron. Mohammad Reza Nematzadeh, the minister of industry, mine, and trade, recently reiterated the country’s annual need for 6 million tonnes 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. The country’s 44th Constitutional Article encourages the role of the private sector in economic activities.

The government says the new projects to produce ore concentrate, iron ore pellets, direct-reduced iron (DRI) known as sponge iron, and ultimately steel would end the export of raw iron ore in two years.