Iran plans to stop exporting crude iron ore

Iran plans to stop exporting crude iron ore from March 2017, and instead sell the processed steel ingredient to maximize profits in an era of low prices.

Tehran currently exports iron ore and is the sixth largest supplier to the Chinese market, although it supplies only a small share of those exported by Australia and Brazil, which together accounted for 83 percent of China's imports in January-August.

Iron ore prices fell to below $ 60 per tonne amid market glut, forcing many low-grade producers, including those in Iran, to shut down production. Iron ore production in Iran fell to 20 from 200 in 2013.

In Iran, the Gol-e-Gohar Mining & Industry Co is expected to commission a 5Mtpa pellet mill in the fourth quarter of 2016. Gol-e-Gohar is in talks with the Iranian government to reduce the export duty by 30 percent on pellets to sell about 1-2 million tonnes of iron ore pellets at the start of the next Iranian fiscal year from March 21, 2017.

In addition, the new supply should end the country's dependence on overseas purchases and turn it into an exporter amid slow domestic demand for steel.

Iran, after being freed from most Western trade sanctions earlier this year, is looking to do big business around the world. It aims to attract $ 29 billion in investment in the mining sector, as well as increase crude steel production to 55 million tonnes by 2025 from about 16 million tonnes currently.