...

Iran's iron ore output hits 14 million tons

Iran Materials 7 September 2013 14:32 (UTC +04:00)

Azerbaijan, Baku, Sep.7/ Trend R.Zamanov/

Iran produced 14,105,897 tons of iron ore in the first five months of the current Iranian calendar year, which started on March 21.

The amount shows 6 percent increase in comparison to the same period of time previous year, the IRNA News Agency reported.

The announced figure was related to the mines owned by Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).

Chadormelo Company's production accounted for 37 percent of the country's total production figure, while the output of Golgohar and Iranian Central Iron Ore companies accounted for 25 and 20 percent of the total figure, respectively.

Iran exported 20 million tons of iron ore in the previous calendar year, which ended March 20.

Mohammad Habibi, an official of Iran's Iron Ore Producers and Exporters Union, predicted that the amount would be increased by 10 percent in the current calendar year.

He expressed hope that the tax problems would be solved soon so that the Iron ore exports face a boost.

Iranian officials say the country's domestic need for steel production units caused a sharp decline in the country's iron ore exports previous year.

China, Russia and Kazakhstan are among the few trade allies still providing a lifeline to Iran's vital steel and iron ore sector after most Western suppliers and buyers have cut ties due to growing sanctions pressure, Reuters reported in May.

While industry data shows steel imports have more than halved in the last year, Tehran has kept an inflow from some partners and slightly boosted domestic production of the material, used in construction and vehicle production but also potentially for nuclear use and munitions.

Iran has also doubled exports of the steelmaking raw ingredient iron ore, worth about $3 billion a year at current prices. The country does not have enough capacity to use much more of its ore to produce steel, but exporting it provides much-needed income now its oil revenues are down by about 50 percent due to sanctions over its disputed nuclear program.

Tehran has ambitious plans to expand domestic steel output and hopes it can in the short term become self-sufficient.

Latest

Latest