Iran, one of the largest steel producer in MENA, has $29 billion of mining investments attracting interest of companies from Europe to Asia. Currently Iran has 2.7 billion pounds of iron ore and more than 3,000 active mines, mostly privately owned dedicated to nation’s steel production and export. It has plans to more than double steel production by 2025 and boost exports once international sanctions are lifted.
According to Mehdi Karbasian, deputy minister of IMIDRO“Sanctions imposed on Iran did certainly slowed development in steel and other fields, “Investment in Iran when sanctions are lifted will be win-win situation.”
He added,” Steel production is set to jump to 55 MnT by 2025 from 22 MnT this year, pending new investment and the end of international sanctions will help to achieve the nation’s target.”
“The projected capacity will help us to raise our steel exports by around 12 MnT a year,” he said. Last year, Iran exported 2.5 MnT of steel products to Italy, the United Arab Emirates, Iraq, Thailand, Spain and Britain.
German, French and Dutch delegations visited Iran in recent weeks, he said. “We have held extensive negotiations with them in regard to investments in the steel and mining industries,” Karbasian said. “We have also had negotiations with representatives of British and Austrian companies.”
Negotiations are under way with unidentified Japanese companies for them to invest in the Makran steel plant, which has capacity to produce 3 MnT of steel, in Iran’s free trade zone of Chabahar on the coast of the Gulf of Oman, he said.
Chabahar has rail links to bring in iron ore from Iran, along with Turkmenistan, Kazakhstan and Afghanistan, he said. Steel companies from India and South Korea are also considering investments in Chabahar, he said.
Inputs taken from Minews
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