Achievements of Mines,
Mining Industries of Iran
Under conditions that we have left behind four decades since the outbreak of
the 1979 Revolution, it must be acknowledged that in spite of all the
difficulties and challenges the country has faced, steel production is in
the forefront of the development of the mines and mining industry sector.
Becoming the 10th biggest crude steel producer in 2018 is good news which
reflects the convergence of the government and the private sector, which
have been able to improve the global status of Iranís steel in a single
Of course, steel industry experts and executives know that steel as the
mother industry acts as the driving force behind many upstream and
downstream industries, as well as design, engineering, manufacturing,
execution and operation sectors. In a recent meeting with heads of mines and
mining industry sector organizations, development of a balanced steel chain
was underlined. A look at statistics also highlights the importance of this
Our land possesses greater talents and higher capabilities for the
development of this industry, and the collective performance of former and
present managers and experts has led to an annual production capacity of 33
million tons of crude steel in Iran. In Sangan region (Khorasan Razavi
Province), development has exceeded forecasts and the target of 55 million
tons could be met even before 1404 (2025).
One side of this output growth is a jump in labor force employment and
development of mineral and mining industries in compliance with the
environment standards, but on the other hand it is important to focus on
infrastructure. It can be admitted that the development of infrastructure is
the most important and one of the key areas for development of the steel
industry and other mineral industries.
Fortunately, the measures taken by companies that have been established and
acquired the technology in Iran over the past decades are noteworthy. This
achievement is admirable, especially in terms of investment, employment and
capacity building, but now more work forces can be directed from private
sector companies and investors to engage in developing infrastructures.
Private companies are believed to be well placed to play a role in
partnership and development, and in the current situation, IMIDRO (Iranian
Mines & Mining Industries Development & Renovation Organization) is working
to attract investors in the field of infrastructure. This, while bringing
more peace of mind to fellow countrymen in different parts of the mines and
mineral industries, is another factor in stimulating the demand for steel,
cement, copper and other products, the overall meaning of which is creating
a new opportunity for growth of employment and generating more revenues.
Fortunately, steel chain manufacturers have succeeded in exporting steel
products despite the external constraints and pressure from certain
countries, and partly offsetting domestic demand reduction by directing
products to foreign markets. Now we are determined to create space for
consumption and demand for mineral products and mineral industries by
increasing attention to the further development of infrastructures such as
roads and railways, sea transport, as well as supplying water, electricity
and gas. This important task, as in recent years, will be achieved through
private sector participation, with the ultimate goal of attention to social
For example, Sangan has become the symbol for development and processing of
iron ore today. The advent of five processing plants in one of the farthest
mineral areas in Iran reveals how important the project is. In fact, Sangan,
with a reserve of 1.2 billion tons of iron ore in the eastern part of the
country, was known until few years ago as a mine that carried out numerous
programs on paper so that only few people had the power to make them
operational. However, the reality is that the collective efforts of the
government and the private sector partnership have given Sangan a new face.
This new and active face is the result of a shift in the outlook that has
taken shape as from the 11th government, utilizing Article 44 of the
Constitution and macro policies. In a trip we had to Sangan with CEOs of
investor companies recently, there were a number of things that attracted
attention, one of the most important of which was the active participation
of domestic investors.
The increase in the number of concentrate and pelletizing plants in Sangan
from one to five units is in line with investing 100 trillion rials. It is
noteworthy that the government alone cannot afford such an investment; even
if there was a possibility there would not be space for the presence of the
private sector. Therefore, this development method should be taken as good
omen, which can be implemented in some other development projects. However,
in the case of Sangan, it should be acknowledged that investment and
investor participation in this massive complex are still ongoing, and
investments in the coming years will reach 200 trillion rials, with the goal
of creating a capacity of 17.5 million tons of concentrate and 15 million
tons of pellet.
The other side of the coin for the development of Sangan is attention to
infrastructure and social responsibility. In the opinion of the officials of
the related organizations the development in Sangan is beyond expectation
and this has caused infrastructures such as access to roads and urban
neighborhoods not to grow along with the mining and processing sector.
We believe that creation of a committee for infrastructure development can
be a starting point for addressing these needs. Previously, actions have
been taken in IMIDRO, one of which is the preparation of a memorandum of
understanding for participation in infrastructure development. This
cooperation document is now signed, so that the affairs of this sector can
be organized and implemented.
It is clear that developmental effects are not limited to capacity building
and production, but the creation of prosperity for the people and the
distribution of wealth in that area are among the measures that sustain
development. Fortunately, the increase in the number of workers in Sangan to
5,000 people is a step towards this goal, but the continuation of the path
requires a two-way effort to increase the welfare of the region. The
creation of new land and rail transport lines, on the one hand, requires
integrated cooperation between the government agencies and, on the other
hand, the participation of the investment companies.
Today, IMIDRO is at the forefront of social responsibility and has taken
effective measures in the field of environment and humanitarian issues.
Although Sangan has launched large projects and accounts for a share of 22%
in the supply of raw materials for the steel master plan, with the
participation of investors and related agencies, it is also implementing its
goals in the area of
responsibility, because this organization regards satisfaction of the
inhabitants of the mineral areas its great goal.