Iran-based iron ore concentrate and pellet producer Foolad Sangan Mining and Industries Company has announced that it is diversifying its sales markets and raw material procurement channels while implementing measures to improve production efficiency and maintain operational continuity amid supply constraints and changing market conditions.
According to the company's statements, Foolad Sangan has adopted a new approach to commercial and sales risk management, focusing on expanding its customer base, maintaining deliveries to strategic buyers and improving its financial performance. The company has also emphasized the importance of developing infrastructure in the Sangan mining region to support iron ore extraction, processing and downstream steel production.
Foolad Sangan expands sales channels and introduces new pellet supply arrangements
Foolad Sangan stated that it has diversified its sales destinations in response to changing market conditions and developments affecting its major customer and shareholder, Mobarakeh Steel.
While maintaining supplies to Mobarakeh Steel, the company has established a cooperative arrangement with Golgohar Mining and Industrial Company, under which part of Foolad Sangan's pellet production is converted into direct reduced iron (DRI) and subsequently supplied to Mobarakeh Steel's production facilities.
In addition, Foolad Sangan has increased its participation in the Iran Mercantile Exchange and identified additional domestic and international sales markets to reduce its dependence on individual customers.
Regarding raw material procurement, the company stated that instability in iron ore extraction and supply has affected upstream production operations. To address these challenges, Foolad Sangan has diversified its feedstock sources through purchases of iron ore concentrate and alluvial iron ore, supporting the continued operation of its pelletizing facilities.
Meanwhile, Foolad Sangan has commissioned a truck-loading facility at its pelletizing plant, designed to handle 3.2 million mt of pellets annually. The facility includes three truck-loading lanes, weighing and load-distribution systems, and a nominal pellet-transfer capacity of 1,600 mt per hour. The company has also introduced a stepped chute system to reduce pellet breakage during loading.
Infrastructure development and DRI production remain priorities
Foolad Sangan CEO Ali Rasoulian has emphasized the importance of expanding railway and road infrastructure, securing reliable electricity, natural gas and water supplies, and extending the Sangan region's steel value chain to include direct reduced iron (DRI) production.
According to Rasoulian, exploration activities and the identification of new reserves over the past two years have made Sangan the largest iron ore mine in the Middle East. He noted that further development of mining and processing operations requires corresponding investment in transportation and energy infrastructure.
Foolad Sangan currently operates iron ore concentrate and pellet production facilities, each with a nominal annual capacity of five million mt.
