In order to reach its targeted
production figure of 29 million tons of steel by 2010,
Iran will have to produce 44 million tons of
iron ore annually - even though all state-owned Iranian
iron ore mines supplied only about 15 million tons during the last Iranian year (21.03.2005 to 21.03.2006). However, managing director of
Iran Minerals
Production and Supply Co., MR. Ardeshir Saad Mohammadi, has given details concerning the recent exploration of a new one billion ton
iron ore deposit. He added that the deposit was 20 times higher than the estimation made by Russian experts. He also declared that they would pinpoint sites of high potential by means of aviation geophysics as a primary step for new exploration operations. Nevertheless, in spite of all the newly-discovered
iron ore deposits, the extraction &
production target of 44 million tons is still a massive three times higher than existing
production. Thus, achievement of the target will depend on large
investments in the installation of processing machinery as well as the
construction of infrastructures in the remote areas in question. Of course,
Iran may import a part of its demand for
iron ore from other countries as in the past. However, most requirements should be supplied by local mines: otherwise, the increasing global price of
iron ore as well as
Iran's inefficient rail system will not allow a competitive price for Iranian steel.