Posco signs billion dollar deal with Iran

The Organization for Industrial Development and Reconstruction of Mines and Minerals of Iran, represented by the holding company IMIDRO, which acts as a government partner for investors and may enter into a joint venture, signed a letter of intent to cooperate for two years with the Korean company Posco. The letter from Posco was signed during the visit of the Korean President to Iran, and involves, among other things, the exchange of technologies. Iran views foreign investment as a form of technology transfer and strongly emphasizes the contracting aspect.

However, Iran is making use of its own technology, such as a direct reduction steel system. This method is useful for Iranian steel mills due to the low cost of gas in the local market. According to the country's twenty-year development plan, published in 2005, steel production by 2025 should increase to 55 million tons, of which about 20 million tons will be exported.