Chadormelo Mining and Industrial Company, as one of the largest mining companies, intends to take extensive measures to develop its activities in the year of the production leap.
Engineer Naser Taghizadeh, CEO of Mining and Industrial Company, said in this regard: Chadormelo Mining Company in its plan this year, extraction of 15 million tons of iron ore, production of 9.5 million tons of iron concentrate, 500 thousand tons of granulated iron ore, 3.7 million tons of pellets, 1.5 Predicts millions of tons of sponge iron and 1 million tons of steel ingots.
He added: “The company has invested 48,500 billion rials directly in the implementation of projects at a historical rate and 26,513 billion rials in the form of participation and purchase of shares of other manufacturing companies and a total of 75,000 billion rials.”
Regarding the financing of development projects, he said: “All the company’s projects have been from internal sources, which include bringing shareholders (capital increase) and obtaining facilities from the country’s banking system.”
*** Manufacturers do not sell raw iron ore
Taghizadeh, in connection with the reform of export duties for iron ore and a clear definition of the category of crude sales in the country, said: “According to iron ore producers, crude sales means the export of crude iron ore extracted from the mine, which has not been done in the whole country.”
Iron ore for use in the steel industry mainly by blast furnace method and direct reduction in granulated form in the sizes of 0-10 mm (Fine Ore) and 10-25 mm (Lump Ore), respectively, upgrading in the form of convertible iron ore concentrate powder Produced in pellets (Pellet Feed) and marketed.
Chadormelo Mining Company CEO added: “In Iran, more than 85% of the steel industry has been through direct reduction method, which consumes more than 67% of iron ore concentrate with grade (Fe).” It is also the only consumer of Isfahan Steel granulated iron ore.
He continued: “On the other hand, the producers of iron ore concentrate are about 10 large companies, which make 85% of the country’s production, and also the export of iron ore concentrate is not done due to the needs of the steel industry in the export of iron concentrate.”
*** We do not agree to export raw materials
Taghizadeh added: “In general, we do not agree with the export of raw materials, but if we had a surplus of domestic consumption, it would be better to export it without levying taxes, in order to monetize and implement development plans, to close mines and stop production and unemployment.” Given that most of the mines are in remote areas)
Regarding the future of the iron ore industry in the country in relation to production, supply, demand, supply of raw materials and domestic and global consumption, he said: “Based on the information and statistics announced in the comprehensive steel plan to achieve 55 million tons of steel on the horizon 1404 We need about 80 million tons of iron ore concentrate.
Production capacity was 59 million tons by the end of 1398, and on the other hand, estimates show that 162 million tons of crude iron ore should be extracted in 1404, while in 1397 the amount of iron ore extraction was 87 million tons and about 93 per year. It has been a million tons.
Taghizadeh said: the geological reserves of iron ore in Iran are about 5 billion tons and the definitive reserves of the announced statistics are different and are between 2.5 to 3.3 billion tons. Therefore, if no new reserves are discovered, the supply of iron ore to the steel industry will be less than 2 decades after 1404.
*** Problem of supplying iron ore
He continued: “Of course, assuming that we produce 80% of the capacity of 55 million tons of steel (this coefficient in the world in 2018 was about 76.5%), the required crude iron ore is 130 million tons and assuming annual growth.” 1.5% of the country’s definite reserves, we will not have a problem with iron ore supply in the coming years.
However, in any case, attention to exploration and its continuation with the support of the government and the private sector should be at the top of the country’s plans. Given that the main advantage of the steel production chain in the country is the existence of their main raw material, iron ore, and given the dispersion of steel mills in the country and rail transportation issues, we should not focus on iron ore imports.
Of course, the construction of new steelmaking units on the southern coast of the country, the main purpose of which is to export manufactured products, is on the agenda of large companies, including Chadormelo Mining Company. One of these projects is in the port of Chabahar and its iron ore supply is intended from Australia.
In the end, he said, iron ore producers have suggested that the government not interfere in issues related to private iron ore companies and small mining producers, such as pricing, quotas, and export duties.
We also have the ability to agree with steelmakers, not let the government set the price base for the private sector, liberalize prices, we keep the domestic market and exports together, and there is no need to impose export duties.
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