Iran Mineral Products Best Substitute for Oil Revenues
Managing Director of Chadormalu Mining and Industrial Company Engineer
Mahmoud Nourian says that despite the economic bottlenecks in the recent
years, a number of development projects have become operational in his
company in the calendar year 1395 (March 2016–March 2017) and more projects
will be commissioned in 1396 (March 2017–March 2018).
Chadormalu Steel Plant Construction Project and Direct Reduction
The Chadormalu steel project with an annual production capacity of one
million tons and capable of reaching 1.3 million tons of steel ingots, has
been completed in Chadormalu industrial complex. Moreover, the direct
reduction project with an annual production capacity of 1,550,000 tons of
sponge iron is under implementation which we hope will be put into operation
by the end of 1396 (March 2018). For the implementation of the two projects
over 18,373 billion rials have been projected for investment.
Another project put into operation is the 500 megawatt combined cycle power
plant of Ardakan in Yazd Province, said Nourian.
The project with a production capacity of 500 megawatts of electricity
started operation in the calendar month of Aban 1391 (October - November
2012). Also, Phases 1 and 2 of its gas project were commissioned in the
month of Azar (November - December) two years later and joined the
nationwide electricity grid. Phase 3, including the steam unit, went on
stream in 1395 (2016 – 2017) and is now fully operational. For the
implementation of this project over 13,698 billion rials have been invested.
In addition, a plan to raise the capacity of Ardakan pelletizing plant
started last year with the implementation of which the annual production
capacity of the plant will increase from 3.400 million tons to 4 million
tons. The project has been launched in a way that without stopping the
present production line the development operation will be implemented. The
plant is currently operational with a capacity of 3.648 million tons. By the
end of the first half of the current year (September 2017) the capacity is
expected to reach 4 million tons. For the implementation of the project 905
billion rials investment has been projected.
Water Supply Project from Ardakan Wastewater Network
With regard to the need for water in the process of sponge iron and steel
ingot production and the severe water shortage in the region, within the
framework of a contract signed between Chadormalu Mining and Industrial
Company and Water and Wastewater Organization of Yazd Province (under the
supervision of the Water and Wastewater Organization) it was agreed that the
aforementioned organization in return for the implementation of the
wastewater network of the city of Ardakan and establishment of wastewater
refining facilities by Chadormalu Company, will delegate the authority of
using the wastewater for at least 30 years to Chadormalu. This deal was the
first operational contract in its kind and Chadormalu Company by taking
advantage of the refined wastewater will supply the water it requires for
consumption in the steel and reduction factories.
The total investment for the project is 1,939 million rials and it is
projected to become operational in the first quarter of the current calendar
year (June 2017).
According to Nourian, Chadormalu Mining and Industrial Company with an aim
of increasing productivity and developing value creation activities, has
been active in numerous industrial and infrastructural projects such as:
Sarmad Iron and Steel Project in Abarkouh
Implementation of this plan with an annual production capacity of 600
thousand tons of crude steel and 500 thousand tons of rolled products, with
an investment of 1,939 billion rials was launched in the month of Azar 1391
(November – December 2012). The rolling section was commissioned in the
month of Bahman 1395 (January – February 2017) and the steel section will go
on stream by the end of 1397 (March 2019). Chadormalu Mining and Industrial
Company has made 65% investment in this project.
Project for Supply & Transfer of Water from Persian Gulf
Chadormalu is one of the largest companies participating in the water
transfer project from the Persian Gulf to central Iran by taking up a share
of 22 percent.
This project is being implemented in three phases from Bandar Abbas to Yazd:
The first phase covers the transfer line of 292 km from Bandar Abbas to Gol
Gohar in Sirjan.
The second phase extends up to Sarcheshmeh Copper in Rafsanjan with a length
of 136 km.
The third phase extends from Sarcheshmeh Copper to Chadormalu iron ore mine
in Yazd with a length of 307 km.
The initial investment is over 6400 billion rials.
Implementation of the entire project up to Gol Gohar and its commissioning
is expected to take four years.
In the first phase, 150 million cubic meters of water desalination is placed
on the agenda of which 110 million cubic meters will be transferred to
Kerman and Yazd provinces.
The managing director of Chadormalu also said the company has a share of 39
percent in Arfa’ Iron and Steel Company, 30 percent in Ghadir Iranian Iron
and Steel Company, 29 percent in Kavand Nahan Zamin Company, 20 percent in
Sarzamin-e Pars Industries and Mines Construction, 17 percent in Tamin-e
Sarmayeh Omid Company, 17 percent in Novin Electrod-e Ardakan Company, and
10 percent in Gol Gohar Iron and Steel Development Company.
Referring to his company’s 44,550 billion rials investment in implementation
of the development projects, Nourian said with the commissioning of the
projects, 7 thousand people will be employed directly and 35 thousand people
indirectly. That means providing job opportunities for a total of 42
As for the future projects and plans of the company, he said in the 5-year
vision plan of Chadormalu, a number of projects have been planned such as
the project for construction of two rolled steel units with a capacity of
1.2 million tons per year.
In this plan, some 42 million euros has been estimated for purchase of
foreign made machinery and equipment and 840 billion rials for domestic
machinery and equipment, construction operations and installation.
The total investment for the plan (including hard currency and local
currency) is equivalent of 2,646 billion rials, Nourian said.
The project is expected to be launched this year and become operational by
the end of 1399 (March 2021). The required sources for the implementation of
the plan have been predicted to be supplied by receiving loans or through
Project for Construction of New Pelletizing Plant
Construction of new pelletizing plant with a capacity of 4 million tons per
year is another future project of the company which is under study.
In this plan a sum of 89 million euros has been projected for purchase of
foreign made machinery and equipment and 3,350 billion rials for supply of
domestic machinery and equipment, construction operation and installation.
The total investment in this plan (including hard currency and local
currency) is equivalent of 7,177 billion rials.
The plan will be launched this year and will become operational by the end
of 1399 (March 2021). The required sources for the implementation of the
plan have been predicted to be supplied through finance.
the development potentials of mines and mining industries in Iran, Nourian
said there is no doubt that our country has huge capacities in this field so
much so that its mineral products can be the best and the most appropriate
alternative for removing the government’s reliance on oil revenues provided
that the existing problems are solved and the production cycle is completed.
Chadormalu Mining and Industrial Co.