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Which countries are able to export iron ore to Iran?

Monday 7 December 2015

In case of needing iron ore, Afghanistan would be the best option, because it is rich in iron ore. Asia’s largest iron ore mine is placed in the province of Bamiyan, Haji Gak, in Afghanistan and it is located about 100 kilometers far from West of Kabul.

Mr. Keyvan Jafari Tehrani by stating that India left about more than one year ago  from iron ore Haji Gak mine, and in the recent visit of Dr. Davud Shah Saba, Minister of Mines and Petroleum of  Afghanistan, he promised Iran to provide security for the Iranian private sectors who invested in this  country’s mines. Just two weeks ago, the Indian company SAIL (main Steel Company of India) and leader of consortium Afghan Iron & Steel Company’s, AFISCO, and other investor companies including JSW and Ispat who were interested to invest in iron ore of Haji Gak, because of  in suffusion securing conditions cancelled their contracts and officially left the country. This provides good conditions for mining companies from Iran to exploit Afghanistan’s mines providing existing safe condition for them.

He added that it is possible in the future to import iron ore from Australia and Brazil and at this moment lack of necessary infrastructure in terms of berthing of 95-90 thousand tons (Panamax) in the ports of Iran we are not able to do this, because ships of Brazil have 400 thousand tons capacity and Cape size vessels Max Vale of Australia which have 170 thousand tons capacity are already carrying iron ore in all countries including China, Japan, South Korea, Oman and so on, but they cannot still do it in Iran.

President of the International Association of producers and exporters of iron ore said: Port of Sohar in Oman that its geographical location is in front of Minab city in province of Hormozgan, now unloading iron ore pellet from Max Brazil ships.

Tehrani said: best record in the ports of Iran for unloading of iron ore is 14 thousand tons per day while in Sohar port in Oman it is 40 to 50 thousand tons per day.

He said: unloading iron ore at the ports of Iran even if the possibility of berthing Vale Max with 400 thousand ton capacity takes 29-day On the other hand, it takes 8 to 10 days for doing this in Sohar port.

Jafari Tehrani  referring to this point  that India could be as a second choice for importing iron ore to Iran. He said in our expectation in 2025 (1404) India is planning to produce 300 million tons of steel, while the 450 and 500 million tons of iron ore will need. India is currently the fourth largest steel producer with production of 86.5 million tons of steel in the world and tries to be ranked in the second place in the next 10 years and stay before Japan and after China in this sector.

He emphasized on this issue that while India is trying to increase capacity of steel production, indeed they don’t have any interest for exporting iron ores and the main reason of participating of this country in Afghanistan’s mine sector is to provide feed for his steel companies.

Regarding this fact, they will try to enter again in Afghanistan in the next year and at that time there is no more chance for Iranian companies to participate in Afghanistan.

Jafari Tehrani concluded that according to mentioned points, Afghanistan would be the best option for importing iron ores, although we hope that with the support of the government (public and private sectors) as well as the possibility of exploitation and production of iron ore for domestic steel industry and a reduction in production costs, we will have this chance to compete in the international markets.

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