Iran: Golgohar Mines Plans Expansion of Iron Ore Concentrate Output

As per reliable sources report to SteelMint, Iran's major Golgohar mines is set to expand the quality and quantity of iron ore concentrate output. This will project will help to increase the iron ore concentrate output by around 10%. The project has been implemented in three steps with total investment equating to around 42 Mn EUR and 172 Bn Rials.

Golgohar currently has a production capacity of over 15 MnT of concentrate and more than 10 MnT of pellet is the largest producer of Iran in these two products. By Implementation of Golgohar Development Projects and Production Lines Optimization Projects, Annual Production of Golgohar Mining & Industrial Company will exceed 30 MnT.

Iron ore concentrate output up 4% Y-o-Y
Iran iron ore concentrate production during the last Persian year (Apr'19-Mar'20), reached 47.306 MnT, up 4% as against the same period last year, as per IRNA. Also, the total iron ore pellet by major companies for the year reported at 41.7 MnT.

Iran has levied a 25-percent duty on the exports of raw minerals (especially iron ore) since September 23, 2019. The policy of tariffs is mostly to avoid exporting raw iron ore, creating more additional value, and meet the requirements from domestic steel industries. In order to realize the goal of producing 55 MnT of steel per annum, Iran needs 160 MnT of iron ore which necessarily requires the amount of exports to be reduced to favor domestic steel output.