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January 2018, No. 86


Cover Story

Realization of 55 m/t Record of Steel Output


The steel chain has been selected as the number one priority, and numerous meetings and inspections have been conducted and there will be continuous monitoring until the end of the Vision Plan 2025.


The 12th government is after transformations in the Ministry of Industry, Mine and Trade through a big reshuffle of senior managers. The appointment of Mohammad Shariatmadari as Minister of Industry, Mine and Trade has changed the strategy of this important ministry. The ministry has a leading part in creating sustainable employment in the country and plays an important role in Iran’s GDP. Therefore, it is always under assessment by the people and senior officials of the country.

Immediately after taking office, Shariatmadari appointed Dr. Mehdi Karbasian as his deputy and CEO of IMIDRO (Iranian Mines and Mining Industries Development and Renovation Organization). In various lectures and ceremonies, the minister has emphasized that IMIDRO should enter a new chapter in activities, and in addition to expanding its subsidiaries and affiliates, it should also be responsible for other development projects of the country in the mines and mineral industries sector.

In line with this policy, IMIDRO has been holding meetings with steel, copper, aluminum, and mineral companies and is updating its goals and plans to fulfill the objectives of the Vision Plan 2025. In addition, in order to realize the development of downstream industries and market control, numerous meetings have been held with trade unions, syndicates and associations in the construction stone, aluminum and steel sections. More areas will be added to the scope of IMIDRO activities soon. This shows the importance of strengthening development organizations.


IMDIRO has again invited all Iranian and foreign investors from the private and domestic sectors to participate in the development of the Iranian mining and mineral industries sector and has promised to support them in all stages.


Meanwhile, the steel chain has been selected as the number one priority, and numerous meetings and inspections have been conducted and there will be continuous monitoring until the end of the Vision Plan 2025.

According to the plan, Iran should create 55 million tons of steel output capacity. To date, 30.8 million tons of active capacity has been built and 2.3 million tons will be added by the end of this year raising the capacity to 33.1 million tons. We have 21.5 million tons in steel projects under implementation, which is feasible in the opinion of experts. That means we can realize the target of 55 million tons even earlier than our projected time. The important role of IMIDRO is to advance these projects until the time of commissioning and create balance in the whole chain (see these projects in table 1).

In order to allow the use of a capacity of 55 million tons of steel in Vision Plan 2025, it is necessary to simultaneously develop the supply chain. To this end, it is necessary for capacity building of 52 million tons of sponge iron and 5.1 million tons of cast iron. At present, there are 27.6 million tons of active sponge iron capacity and 3.6 million tons of active cast iron capacity in the country. By the end of the current Persian calendar year (March 20, 2018), the capacity of the sponge iron will reach 32.45 million tons when 4.85 million tons of capacity will be added to the industry circuits.

Meanwhile, projects are under execution with a capacity of 12.4 million tons of sponge iron and 1.5 million tons of cast iron, which will increase the capacity of sponge iron to 44.85 million tons and cast iron to 5.1 million tons. Therefore, the country will face a deficit of 7.15 million tons in sponge iron output. IMIDRO is planning to compensate for this deficit by defining new plans or activating suspended plans in this sector. As for cast iron, there will be no specific problem (see the sponge iron and cast iron plans in table 2).

In continuation of the supply chain, IMIDRO has entered the next phase, namely the pelletizing. In order to achieve the target of 55 million tons of steel, and supply of feedstock required by active and under construction steel sponge and cast iron, capacity building should be made for production of 80 million tons of pellets and 7.7 million tons of agglomerates. At present, active pellet capacity in the country is 37 million tons and of agglomerates 5.6 million tons. By the end of this Persian calendar year (March 20, 2018), 13.7 million tons of pelletizing will be added to the capacity which will reach 50.7 million tons. Meanwhile, projects are underway for production of 22.8 million tons of pellets and 2.1 million tons of agglomerates. Therefore, to feed the supply chain, we need 6.5 million tons of capacity building in the pellet sector or might import it. IMIDRO along with the private sector is investigating the issue to make a final decision (see the pelletizing and agglomeration projects under implementation in table 3).

The next part of this supply chain is iron ore concentrate. In this section too, in order to supply a high chain, a capacity of 86 million tons per year should be built to meet the Vision Plan 2025 projection. Currently, there is 46.6 million tons of active capacity in the country, which will reach 51.9 million tons by the end of this Persian year when an additional 5.3 million tons enter the circuit. In addition, 14.4 million tons will certainly be added to the capacity from projects under implementation. This means we will reach a total of 66.3 million tons in output. Under these conditions, there will be a deficit of 19.7 million tons. IMIDRO is planning to increase the capacity of the country’s mines or create conditions for import of concentrates in the coming years (see the iron ore concentrate projects in table 4).

Realization of 55 million tons of steel in Iran is one of the main goals of the Ministry of Industry, Mine and Trade. This program will create decent employment directly and indirectly and will be the basis of the economic drive. According to experts, production in 2025 will amount to about 44 million tons, of which about 30 million tons will go for domestic consumption and about 14 million tons will be exported.

In order to increase the efficiency and ensure the availability of iron ore feed, IMIDRO has made extensive explorations over the past four years and has achieved satisfactory results. The 250,000-square-kilometer exploration program by IMIDRO has increased the country’s exploratory surface by several folds. This remains one of the priorities of the organization. Of course, under the wise management of this organization, part of the capacity has been constructed along the open waters in the south of the country to achieve two goals. First, if needed, part of the raw material is supplied through imports, and secondly, the products of these units would enjoy a more suitable position for export.

Last year and this year, Iran exported 6 million and 8 million tons of steel respectively, indicating that Iran is approaching the projected target in Vision Plan 2025 in the steel sector. Technologically too, the technologies used in the country are highly advanced and the expertise created in Iran is remarkable. The unveiling of PERED technology in the current year is one such achievement.

In addition to the above plans, IMIDRO seeks to complete the chain of consumer materials and byproducts of this chain. With the help of the private sector and steel chain activists, IMIDRO is building plants such as graffiti electrodes, green coke, refractories, etc. The active participation of the private sector in this chain is very favorable.

In addition, under the direct guidance and supervision of Dr. Mehdi Karbasian, IMIDRO is leading all steel companies operating in the Persian Gulf metal and mineral industries special zone in Bandar Abbas to create a large consortium of producing 10 million tons of steel. Dr. Karbasian personally chairs these meetings to reach the first vertical and horizontal integration of industry in Iran at this scale. Implementing this model in the country can bring a new model of integration in order to increase productivity and create competitive advantage in the country.

IMDIRO has again invited all Iranian and foreign investors from the private and domestic sectors to participate in the development of the Iranian mining and mineral industries sector and has promised to support them in all stages.

Table 1

Projected Year of Completion

Location

Projects

No

1396 (2017/18)

Isfahan

Saba Foulad (Steel)

1

1396 (2017/18)

Isfahan

Ardestan Steel Complex

2

1396 (2017/18)

Kerman

Sirjan Iranian Steel Company

3

1397 (2018/19)

Kerman

Zarand Iranian Steel Company

4

1397(2018/19)

Khuzestan

South Rohina Steel Complex

5

1397(2018/19)

West Azarbaijan

Urmia Steel

6

1397 (2018/19)

Isfahan

Kavir Steel Cooperative Company

7

1397 (2018/19)

Kerman

Jahan Foolad Sirjan Complex

8

1397 (2018/19)

Yazd

Iran Alloy Steel Company

9

1397 (2018/19)

Hormuzgan

Kish South Kaveh Steel Company

10

 

East Azarbaijan

Dorpad Tabriz Industrial Company

11

 

East Azarbaijan

Bonab Azar Hadid Steel Complex

12

 

Qazvin

Bouin-Zahra Arian Steel Factory

13

 

East Azarbaijan

Snond Azar Steel Manufacturer

14

1398 (2019/20)

East Azarbaijan

Miyaneh Steel Complex

15

1398 (2019/20)

South Khorasan

Ghaenat Steel

16

1398 (2019/20)

Fars

Neyriz Ghadir Steel Company

17

1398 (2019/20)

Khuzestan

Shadegan Steel Company

18

1398 (2019/20)

Charmahal & Bakhtiari

Sepid Dasht Steel Complex

19

1398 (2019/20)

Kerman

Butia Iranian Steel Company

20

1398 (2019/20)

Yazd

Sarmad Abarkooh Iron & Steel Co.

21

1398 (2019/20)

Yazd

Mohsen Steel Complex

22

1398 (2019/20)

Yazd

Behnavard Kavir Steel Complex

23

1398 (2019/20)

Zanjan

Alborz Nab Arash Steel Complex

24

1399  (2020/21)

Markazi

Amir Kabir Arak Steel Company

25

1399 (2020/21)

Khorasan Razavi

Torbate Heydarieh Steel Complex

26

1400 (2021/22)

Khuzestan

Jahanara Steel Company

27

1401 (2022/23)

Kerman

Gol Gohar Iron & Steel Development Co. – Phase 1

28

1401 (2022/23)

Kerman

Gol Gohar Iron & Steel Development Co. – Phase 2

29

1401 (2022/23)

Ilam

Zagros Steel Company

30

Table 2

Projected Year of Completion

Location

Projects

No

1396 (2017/18)

Fars

Neyriz Ghadir Steel Company

1

1396 (2017/18)

Kerman

Baft Steel Complex

2

1396 (2017/18)

South Khorasan

Ghaenat Industry Steel

3

1396 (2017/18)

Khorasan Razavi

Pars Foulad (Steel) Sabzevar

4

1396 (2017/18)

Yazd-Ardakan

Chadormalu Mining & Industrial Co. – Samen Project

5

1397(2018/19)

Isfahan

Iran Ghaltak Co.

6

1397(2018/19)

Isfahan

Pars Poolad Yaran

7

1397(2018/19)

Yazd

Ardakan Steel Complex

8

1397(2018/19)

Semnan

Kavir Damghan Steel Co.

9

1397(2018/19)

Yazd

Bafgh Mineral Complex Iron & Steel Industry Company

10

1397(2018/19)

Isfahan

Kavir Steel Cooperative Company

11

1397(2018/19)

Kerman

Gol Gohar Iron & Steel Development Co. – Kosar Project

12

1397(2018/19)

Kerman

Butia Iranian Steel Company

13

1397(2018/19)

Fars

Pasargad Steel Complex

14

1397(2018/19)

Yazd

Behnavard Kavir Steel Complex

15

1398 (2019/20)

Sistan & Baluchestan

Mokran Revitalization Project – Phase 1

16

1399 (2020/21)

Markazi

Amir Kabir Arak Steel Company

17

 

Khorasan Razavi

Torbate Heydarieh Steel Complex

18

Table 3

No

Project

Location

Capacity (million/tons)

Estimated Year of Completion

1

Butia Iranian Steel Company

Kerman

2.50

1396 (2017/18)

2

Alborz Steel Industries Co.

Hamedan

0.55

1396 (2017/18)

3

Opal Parsian Sangan Mineral Industrial Company

Khorasan Razavi

5.00

1397(2018/19)

4

Khorasan Steel Complex

Khorasan Razavi

2.50

1396 (2017/18)

5

Maad Koush Co.

Hormuzgan

2.50

1396 (2017/18)

6

Ardakan Sponge Iron Co.

Yazd

0.6

1396 (2017/18)

7

NIMIDCO

Khorasan Razavi

2.50

1397 (2018/19)

8

Gohar Zamin – Phase 1

Kerman

5

1397 (2018/19)

9

Omid Noor Qaem Technical Development Steel Co.

Khorasan Razavi

0.60

1397 (2018/19)

10

Rasht Khar Steel Complex

 

1.2

1397 (2018/19)

11

Kaveh Pars Mining Industries Development Co., East Kaveh Steel Co.

Khorasan Razavi

2.60

1398 (2019/20)

12

Bafgh Iran Central Iron Ore Co.

Yazd

5.00

1398 (2019/20)

13

Pasargad Steel Complex

Fars

2.50

1398 (2019/20)

14

Baft Pelletizing

Kerman

2.50

1400 (2021/22)

15

Alborz Steel Industries Co.

Kurdestan

0.92

1401 (2022/23)

Table 4

No

Project

Location

Capacity (million/tons)

Estimated Year of Completion

1

Ehya Sepahan Khaf Steel Complex Co.

Khorasan Razavi

0.8

1396 (2017/18)

2

NIMIDCO

Khorasan Razavi

2.5

1396 (2017/18)

3

Gol Gohar Mineral, Industrial Co.

Kerman

2.0

1396 (2017/18)

4

Khorasan Sangan Steel Mineral Industrial Company

Khorasan Razavi

5.0

1398 (2019/20)

5

Kaveh Pars Mining Industries Development Co., East Kaveh Steel Co.

Khorasan Razavi

2.5

1398 (2019/20)

6

Gohar Zamin Iron Ore Co.

Kerman

2.0

1398 (2019/20)

7

Khorasan Steel Complex: Production of Minerals

Khorasan Razavi

2.5

1398 (2019/20)

8

Opal Parsian Sangan Mineral Industrial Co.

Khorasan Razavi

2.4

1398 (2019/20)

 

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  January 2018
No. 86