Iranian iron ore concentrate and pellet producer Foolad Sangan is diversifying its sales and raw material procurement to keep operations running amid supply disruptions and changing market conditions. The company is also expanding shipment infrastructure and working to improve production efficiency.
Foolad Sangan continues to supply strategic customer Mobarakeh Steel while broadening its customer base and sales channels. Under an arrangement with Golgohar Mining and Industrial Company, some of Foolad Sangan’s pellets are converted into direct reduced iron (DRI) and then delivered to Mobarakeh Steel’s facilities. The company is also increasing its activity on the Iran Mercantile Exchange and pursuing additional domestic and international markets.
Disruptions to iron ore extraction and supply have affected upstream operations. In response, Foolad Sangan has diversified its feedstock purchases, including iron ore concentrate and alluvial iron ore, to support continued operation of its pelletizing plants.
The company has commissioned a truck-loading facility at its pelletizing plant with annual capacity of 3.2 million mt. It has three loading lanes, weighing and load-distribution systems, and a nominal transfer capacity of 1,600 mt per hour. A stepped chute was installed to reduce pellet breakage during loading.
Foolad Sangan CEO Ali Rasoulian identified rail and road development, reliable electricity, natural gas and water supplies, and extending the Sangan region’s steel value chain into DRI production as priorities. He said exploration and the identification of new reserves over the past two years had made Sangan the Middle East’s largest iron ore deposit. Further development of mining and processing, he added, requires investment in transport and energy infrastructure.
Foolad Sangan operates iron ore concentrate and pellet facilities, each with an annual capacity of 5 million mt.
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