$500m bonds for Iranian steel projects

Iran Materials 24 January 2011 10:37 (UTC +04:00)

Some 5 trillion rials (approximately $500 million) worth of bonds will be offered to the public for the funding of eight steel projects.

In February 2010 Iran offered some 5 trillion rials worth of bonds to the public for the funding of steel projects as the first offering.

Each of these eight projects has the capacity to produce one million tons of steel per year.

Previously the director of Iranian Mines and Mine Industries Development and Renovation Organization Hassan Polarak said that steel projects in the country are estimated to cost $10 billion of which $9 billion will be spent in the country.

He said to build a one million ton steel factory $550 million to $600 million is needed and in the past the equipment for these factories was mostly imported.

"In heavy industries such as mines we have become self-sufficient, while four years ago we were 70 percent dependant," Polarak added.

"In steel industry we are 90 percent self-sufficient and by next year we will be 100 percent," he concluded.