Turkey-based iron ore producer Bilfer Madencilik ve İhracat A.Ş. (Bilfer) has said that it shipped 80,300 mt of 65 percent Fe content magnetite iron ore concentrate to China on July 22 using a Panamax vessel. Bilfer started magnetite iron ore concentrate exports two years ago with container shipments, while it shipped its first Panamax iron ore cargo to China in February this year with a total of 67,000 mt of magnetite iron ore concentrate.
Bora Birkardesler from Turkey-based Sarpedon Madencilik who was in charge of both sales operations told SteelOrbis that the latest iron ore transaction was on CFR basis while the first Panamax vessel transaction was on FOB basis. Mr. Birkardesler said that the latest shipment from a port in Nemrut Bay is expected to reach the Chinese buyer at the end of August.
Bilfer CEO Sozer Ozel emphasized that the most recent shipment is the largest single-shipment volume in the history of the Turkish mining industry. Ozel said that Bilfer's iron ore concentrate plant is located close to the company's iron ore mine in Ayvalik and that Bilfer uses its own iron ore at the plant. Mr. Ozel told SteelOrbis that Bilfer has received an Environmental Impact Assessment (CED) report from the Turkish authorities for the construction of a magnetite iron ore concentrate plant in the area of Bizmisen in Divrigi, adding that the new plant is expected to be commissioned within two to three years. The plant will have an annual production capacity of 500,000 mt. He went on to say that Bilfer was planning to build a pellet plant as well, though the company has put the pellet plant project on hold due to higher energy prices in Turkey.
Ozel explained that Bilfer does not supply magnetite iron ore concentrate to the Turkish domestic market since Turkish integrated steelmakers do not have integrated pellet plants as their Chinese counterparts do and do not use concentrate in their sinter feed. He concluded by saying that Bilfer is holding talks with Turkish integrated steel producer Erdemir's subsidiary pellet producer Ermaden, which has four to five years of reserves left at its Divrigi mine, regarding the supply of iron ore.