Iran plans to invest $2B in iron ore mine

Business Materials 29 June 2015 16:45 (UTC +04:00)

Baku, Azerbaijan, June 29

By Fatih Karimov - Trend: Iran plans to invest $2 billion in Sangan iron ore mine, located in northeastern province of Khorasan Razavi, said Mehdi Karbasian, the chairman of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).

The project will yield 1.2 billion metric tons of iron ore reserve, 15 million metric tons of pellets and 17.5 million metric tons of concentrates, Iran 's Mehr news agency quoted Karbasian as saying June 29.

Four Iranian consortiums, namely Mobarakeh Steel Company, Tosee Melli Company, Khorasan Steel Company, and Gostaresh Foolad Company, plus an Iranian-Foreign consortium, comprised of two Chinese companies and four Iranian companies, will invest in the project, he added.

It is predicted that exploration operation will be completed by the end of the next Iranian fiscal year (March 2017), and at least one pellet production plant to be inaugurated in the current year, he said.

Concentrates and pellets are necessary for steelmaking, he said, adding that once the Sangan mine comes on stream, it will bring $200-300 million annually for the country.

Iran's ore iron reserves is 1400 million metric tons, while iron content reserves stood at 1400 million metric tons in 2014 Iran ranks among 10 top countries in the world in terms of mineral resources with mineral reserves amounting to 60 billion metric tons.

Edited by CN