Economy, Business And Markets
0

MSC Buys 16% Stake in Iran’s Largest Mining Investor

The acquisition makes Mobarakeh Steel Company the MMDIC’s largest shareholder.The acquisition makes Mobarakeh Steel Company the MMDIC’s largest shareholder.

Iran’s largest steel producer, Mobarakeh Steel Company, has bought a further 16.1% stake in Mines and Metals Development Investment Company from a semi-governmental retirement fund.

MMDIC is Iran’s largest mining investment company and a major shareholder in a number of domestic miners and steel producers, including the country’s largest miners Golgohar Mining and Industrial Company, Chadormalu Company and sponge iron and steel billet producer Arfa Iron and Steel Company.

The acquisition takes MSC’s stake in MMDIC to 35.4% and makes it the investment company’s largest shareholder, S&P Global Platts reported.

A stock market specialist said the deal was notable because it increases MSC’s potential influence on price determination for long-term contracts for iron ore and pellet, as well as on export and other policies.

Golgohar and Chadormalu plan to commence exporting some of their iron ore pellet output this year, but are waiting to receive a government exemption from a 15% export duty on iron ore pellet.

Golgohar started its second 5 million tons/year pellet plant last November 2016 and now has a nameplate capacity of 10 million tons/year.

Iran’s total pellet making capacity is 29.5 million tons/year, which is expected to rise to 35 million tons/year within the current fiscal year ending March 20, 2018, the Iranian state mines and metal holding company IMIDRO said.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com