The deputy for mineral affairs of Iran Central Iron Ore Company-Bafq said, “In line with the company’s policy and given the fact that the Choghart mines reserves are running out and exploitation from its surface area will end in the next few years, a contract to buy 500,000 tons of rocks has been signed by IMIDP CO, one of the company’s subsidiaries which is comprised of Khouzestan Steel Company with a %49 share and Iran Central Iron Ore Company Bafq with a %51 share of the company.

Three members of its board of directors have been chosen from Iran Central Iron Ore Company, and two members have been chosen from Khouzestan Steel Company.”

The company’s deputy for mineral affairs said the goal is to use the capabilities and potential of both companies and any such measures benefit both firms, noting, “Although not even a year has passed since the conclusion of the contract to buy 500,000 tons of iron ore, the rocks are being transferred to Bafq iron ore company and so far 40,000 tons of iron ore has entered the company.” He said these rocks are being bought from Bafq Cheshmeh Piroozi company and mines in Meybod and Sirjan, noting, “A contract will be signed with a mine in Zanjan in the near future to have iron ore transferred from there to this region as well.” Ali Yazdi added, “Considering that this contract was not enough, a committee entitled ‘iron ore supply’ was formed on the recommendation of the company’s CEO, which comprises professional experts in the minerals and production department to guarantee the supply of rocks needed by the company in the future. It is tasked with identifying private iron ore mines in the province and the country, buying rocks, and cooperating with mines that require exploration and exploitation services.” He said reserves of high-grade magnetite iron ore are depleting in the region and the country because of mining operations over the past years, noting, “We are now facing a shortage in this regard, and there are mainly low-grade hematite and magnetite rocks.

This has been a cause of concern for large steel companies such as Esfahan Steel Company, Mobarakeh Steel Company, and Khouzestan Steel Company and has prompted them to seek to purchase iron ore from private companies. This issue has caused competition.” The official said the iron ore company has not put the supply of rocks on its agenda thanks to mineral reserves in Choghart and Se Chahun and the anomalies it has had, noting, “This concern increased after the separation of the anomalies from the body of Iran Central Iron Ore Company-Bafq and now this concern has further increased given that the Choghart mine’s reserves have almost finished.

The company’s mineral officials are seeking a solution to this issue because the employment of 6,000 people working for the company directly or indirectly has been threatened, and a fundamental solution and decision had to be found and made in this regard.” Yazdi added, “Fortunately, Iran Central Iron Ore Company-Bafq has begun to take good measures and is following up the matter to ensure that we will not face any problem in rocks supply in the future.” He said, “At IMIDP CO, our major focus has been on supply of rocks for the iron ore company, which Khouzestan Steel Company will indirectly benefit from. The reason is when rocks are supplied to Bafq iron ore company and the concentrate is produced, steel companies need to have the required concentrate supplied to them from this company and therefore they benefit from it in this way.

Even the exploration area, which was put up for auction by the IMIDRO company and won by Khouzestan Steel Company, was handed over to IMIDP CO. Exploration activities are being carried out there and huge reserves will be found, and its rocks will undoubtedly be given to Bafq iron ore company.” In another part of his remarks, Yazdi said most of the required measures concerning Se Chahun pelletizing plant have been taken and it will soon start its operation, adding, “Given the infrastructure and factories that have been built and the existing potential, not paying attention to it would be an injustice to the complex and the people who have been waiting for 40 years to witness such a day, and all officials in the company, county, and province should help allay this concern.”

On the 19D, North Anomaly, Mishdavan, and Chah Gaz mines, which have been repeatedly suggested by the iron ore company in line with the same goal, he said, “The Chadormalu mine and the iron ore [company] are experiencing a similar situation and they are concerned about rocks supply in the future. With the cooperation and on the recommendation of officials and based on a memorandum of understanding signed between Bafq central iron ore company and Chadormalu and the subsequent formation of a joint company, it was agreed that 19D Anomaly be handed over to the joint company.

Administrative obstacles have been removed and an exploration permit has been issued as a result. Exploration plans and initiatives are being pursued, and exploitation work will begin in the mine in the near future.” He noted, “In the first few years, heavy tailings operations will be carried out, but it will form a good basis for future activities.”