Iran: Golgohar Mines Registers Increase in Iron Ore & Pellet Output in Last Iranian Year

As per reliable sources report to SteelMint, Iran's major Golgohar mines, the largest Iranian producer of iron ore concentrate and pellet has recorded iron ore concentrate output at 16 MnT for the Iranian year. This contributes to about 34% of total Iranian IOC production which stood at 47.306 MnT.

The miner has reported 12 MnT iron ore pellet output for last Iranian year, contributing 29% of total Iranian pellet output at 41.7 MnT. Both iron ore and pellet output have increased around 5% Y-o-Y.

Golgohar mines is set to expand the quality and quantity of iron ore concentrate output. This 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. By Implementation of Golgohar Development Projects and Production Lines Optimization Projects, Annual Production of Golgohar Mining & Industrial Company will exceed 30 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.