Chadormalu mine, Golgohar mine and Sangan mine are considered the largest iron ore mines in Iran and the region. Experts describe Sangan mine (situated about 300 km southeast of the provincial capital city of Mashhad, Khorasan Razavi Province, and near Afghanistan border) as theÂ Mineral AssalouyehÂ of Iran believe it has a very high mineral potential.
Development and attraction of foreign investment in the iron ore chain, including exploration, processing, iron ore concentrate, and pelletizing are among major policies in the mines sector and mining industry of the country. Iran’s iron ore has a relative advantage and always has its own market. On the other hand, iron ore mines in west of Afghanistan, which are connected to Iran’s mines in Sangan, have also suitable potential. With regard to the infrastructures created by IMIDRO in Iran’s Sangan region and the trained manpower in that area, the best route for development of exploration, extraction and processing of iron ore in west of Afghanistan, is Iran’s Sangan and Chabahar Port.
Foreign investors can create tripartite consortiums with the presence of Iran, Afghanistan, and a third country and in this way while taking trilateral advantage help develop and make operational such rich reserves.
If the chain from iron ore mine up to the production of steel is divided into the following seven stages (capital, technology, raw materials, energy, human resources, infrastructures, and consumer market) it can be said that Iran has relative advantage in the four factors of raw materials, energy, human resources and consumer market. It has advantages in the two areas of capital and technology but it is weaker compared to the previous four factors, and still needs development in the infrastructures element.
In general, with regard to the regional need for iron ore products due to increase in consumption in Iran, Iraq, the Persian Gulf southern states (PGCC), Turkey, Pakistan, and CIS countries, we think iron ore industry is one of the best opportunities to invest even in private sector which doesn’t listed in the market. Golgohar Company and Chadormalu Company have many development plans which foreign investor can invest in them, more over there are many investing opportunities suggested by IMIDRO for domestic and foreign investors to invest in Iran iron ore industry infrastructure and it can create a great supply chain for producing steel and automobile.