Economy, Domestic Economy

Coal Industry Attracts Investments Worth €250m

Coal Industry Attracts Investments Worth €250m Coal Industry Attracts Investments Worth €250m

Tabas Parvadeh Coal Company’s expansion projects put out to tender have attracted investments worth €250 million, according to the company’s development project manager, Omid Fallah.

According to Fallah, the abundance of high-quality coal reserves, low exploration costs, the mines’ developed infrastructure and easy access to downstream producers’ plants are some of the advantages of investing in Tabas region’s coal industry.

“Considering the revival of global coking and thermal coal market, we believe more investors will be attracted [to Tabas],” he was quoted as saying by Iranian Mines and Mining Industries Development and Renovation Organization’s public relations.

Tabas in South Khorasan Province holds about 55-76% of Iran’s coal reserves, with an estimated proven coal reserve of 2.5 billion tons, including 1.1 billion tons of coking coal in Parvadeh region and 1.4 billion tons of thermal coal in Mazino area, Eghtesad News reported.

The coal sector plays a crucial role in the steel production chain, as it is the primary feedstock required to keep the steel mills running. 

Iran aims to become the world’s sixth largest steel producer by 2025, as per the 20-Year Vision Plan (2005-25). The plan stipulates the production of 55 million tons of crude steel per year, which in turn requires the annual manufacture of 3.2 million tons of coking coal and 4.5 million tons of coal concentrate.

Stressing the need for further development of the coal industry, experts believe Iran’s coal concentrate output currently falls short of the target by more than 3 million tons.

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