The Forum for Partners in Iran's Marketplace

September 2018, No. 88

Saeed Pirmoradi, Managing Director of Sirjan Iron Ore Complex

Iron Ore Reserves in Iran & Process of Using Them for Development

The definite iron ore reserves in Iran is said to stand at 3 billion tons. On the other hand, there are about 200 iron ore mines in the country that are operating, and a limited number of them have completed complementary explorations. The steel production plan, in accordance with the specifications of the Vision Plan 2025 is estimated at 55 million tons; this means 20 years of steel production at most. From the perspective of the Vision Plan 2025, with regard to the above-mentioned cases, new explorations in the expanded territory of Iran assume great importance.

Fortunately, Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) is strongly resolved to take this course. But the question is whether all of the active mines listed are on the way to finalizing their complementary explorations? Or are active with their initial explorations? Certainly, the complementary explorations of these mines could increase the relative capacity of the crude iron ore and serve as a further step towards progress in this field. 

Challenges of Iron Ore Mines and Mechanisms to Remove the Problems

Mining conditions and activities are specific either in terms of geography or human resources, etc. and as a result of this specification challenges too are very specific in certain cases; For example, in transportation. As far as I know, about 90% of the transportation of minerals in the country is carried out by truck, which means less transportation, higher cost and...

The first challenge to be addressed is the question of infrastructures, including water, electricity, gas, roads, railways, etc. Are there enough required infrastructures around the mines? Obviously, presence of infrastructures and their access ways with regard to the geographical limits of the mines is highly important in the development of the mines and the initial investment.

The next challenge is technology. The up to date technology means reducing costs, increasing revenues and, as a result, continued profitability and investment security. The next question relates to human resources and their increased productivity. Specific forces, especially in the economic sectors, tend towards urbanism and their selection and presence in mineral complexes have been neglected. For example, an expert workforce who is acquainted with strategy and knows the market and understands the global and domestic economic conditions is not present in the mines. Under severe conditions, such people can present a proper plan and design so that the mine owners can leave the difficult situation behind.

The next challenge is the consumer market and the new sales techniques: Whether on a macro or micro level, whether as an upstream organization or as a mine owner, we should learn new sales methods and constantly monitor the consumer market, and take our share from the market and safeguard it and try to increase them. Taking steps towards increasing the share means better productivity, competitive production, and...

Other cases, that are not less important, can be added to this list such as injection of capital and money, offering financial incentives, stability of laws and regulations, and most importantly, proper management and creation of security to reduce the risk of investors. 

Raising Operating Rate & Its Impact on Further Competitiveness of Products in Global Markets

In a general definition, the mere increase in the operating rate does not necessarily mean further increase in competitiveness of the market products; the operating rate from the economic capacity is obtained from the actual production ratio to the economic production capacity. So, what is important is the economic capacity and review of this capacity along with production and during the operating period is very important. As it was mentioned before, revision and new designs can best be accomplished in the presence of human resources and expert forces.  

Iron Ore Production in Vicinity of Golgohar Development Permit

Sirjan Iron Ore Complex is one of the most acclaimed and big complexes of the country that started its operations in 1387 (2008/09) in the form of a project for equipping Golgohar Mines 2 and 4 in the field of extracting iron ore from the said mines.

The complex, up to the month of Esfand 1394 (February/March 2016), directly and by using services of the contractors, managed exploitation operations from the said mines. With regard to the upstream regulations and policies of IMIDRO, in Esfand 1394 Golgohar Mine 4 in return for receiving the ownership equity was shared between IMIDRO and the private sector. In the month of Mehr (September/October) this year, Golgohar Mine 2 was ceded to the private sector for a certain period of time. Currently, the Sirjan Iron Ore Complex, on behalf of IMIDRO has supervision over the 6 mines on its agenda in accordance with the communicated contracts.

The total amount of crude iron ore produced in 1395 (2016/17) amounted to 20.46 million tons, of which 12 million tons were related to Golgohar Mine 1 (Golgohar Mining and Industrial Company) and 6.85 million tons to the production of Gohar Zamin Iron Ore Company dealing with Mine 3. In 1396 (2017/18), the total production of the 6 mines was about 33 million tons. It is noteworthy that the highest production increase was related to Mine 3 and Gohar Zamin Iron Ore Company.

Given the figures and numbers mentioned, it is clear that the production leap has occurred in the Golgohar area and production of crude iron ore.

At first glance, it seems that only about 5% of the country’s economy depends on the mines and mining industries sector, but in fact more than 30% of the economy in the downstream industries of mining and metals is dependent on mines.

All the above mentioned information is a confirmation on the special importance and significant contribution of the iron ore mines of Golgohar in Sirjan in the country’s economy and national production and development.

Sirjan Iron Ore Complex

Tel: 034-41423480-1

Fax: 034-41423459



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  September 2018
No. 88