Mianeh sponge iron plant to be launched to­day

Iran Daily - - Domestic Economy -

Iran will launch Mianeh sponge iron plant with an an­nual ca­pac­ity of 800,000 tons in East Azarbai­jan Prov­ince to­day. An­nounc­ing this, Ra­soul Ah­madzadeh, man­ager of the plant, said that the plant will con­vert pel­lets made from iron ore into sponge iron, us­ing the in­di­g­e­nized Per­sian Re­duc­tion (PERED) method, imidro.gov.ir re­ported.

The of­fi­cial said that the plant, which was con­structed at a cost of $70 mil­lion, will cre­ate 250 di­rect and 750 in­di­rect job op­por­tu­ni­ties.

Ah­madzadeh put the av­er­age pu­rity of Mianeh sponge iron at 95 per­cent adding that 97-per­cent pure sponge iron is also to be pro­duced in the com­plex.

He added that about 300 do­mes­tic firms have con­trib­uted to the con­struc­tion of Mianeh plant.

PERED, jointly de­vel­oped by Iran and Ger­many, is a di­rect re­duc­tion process con­vert­ing iron ox­ides, in the form of pel­lets or lump ore, to highly re­duced prod­uct suit­able for steel mak­ing.

The project is be­ing im­ple­mented un­der the engi­neer­ing, pro­cure­ment, and con­struc­tion (EPC) con­tract­ing ar­range­ment with the aim of pro­vid­ing feed­stock for Iran’s steel mills.

The owner of the project is the Or­ga­ni­za­tion for De­vel­op­ment and Ren­o­va­tion of Min­ing and Min­ing In­dus­tries of Iran (IMIDRO) which is also in charge of sourc­ing equip­ment from do­mes­tic com­pa­nies in line with the pol­icy of cre­at­ing jobs and pre­vent­ing cap­i­tal flight.

Steel is a strate­gic com­mod­ity for Iran, which is also the Mid­dle East’s big­gest car­maker. It is fun­da­men­tal to the Ira­nian so­ci­ety with its mas­sive oil and gas in­dus­try, trans­porta­tion net­work, wa­ter sup­ply, ur­ban cen­ters and mam­moth con­struc­tion.

Steel was Iran’s largest ex­port item af­ter oil, gas and petro­chem­i­cals last year, partly be­cause of the slump in do­mes­tic con­struc­tion.

The coun­try has been boost­ing steel pro­duc­tion, tar­get­ing an out­put plateau of 55 mil­lion tons per year by 2015. Cur­rently, Iran pro­duces nearly 18 mil­lion tons, which is one per­cent of the global to­tal. An IMIDRO state­ment says ex­ports are ex­pected to reach 2025 mil­lion tons by 2025.

Iran’s big­gest mill is Mo­barakeh Steel Com­pany which pro­duces 7.2 mil­lion tons of steel per year. The coun­try ex­ported four mil­lion tons of steel last year, ac­cord­ing to IMIDRO Di­rec­tor Me­hdi Kar­basian.

Ital­ian steel firm Danieli has signed com­mer­cial agree­ments val­ued at $5.7 bil­lion with Iran, in­clud­ing a joint ven­ture, called Per­sian Me­tallics, worth $2 bil­lion.

IRNA

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