Investment of more than 7 billion dollars in the mining and steel chain

A member of Iran Steel Association said: Currently, the country's steel production capacity is more than 40 million tons, and the amount of export and domestic supply of steel products is affected by economic conditions and market components.

According to Ambassador Arjan, Alireza Abra Himi, a member of the Iran Steel Association, referring to the investment of more than 7 billion dollars in steel, said: this complex has more than 12% of the country's steel production capacity with more than 40 industrial complexes and direct employment of about 25 thousand people.

A member of the Iran Steel Association, explaining the process of formation and activity of the complex, stated: This complex was established in 2007 with the aim of creating a completely private large economic enterprise in the field of mining and mineral industries to act as a stimulus for the economic development of the country in addition to industrial activity.

He added: Currently, it is one of the largest companies active in the country's capital market, and by completing the mining and steel value chain, it has integrated operations from exploration and mining to iron ore processing, pellet production, direct recovery and steelmaking. A structure that is unique in its kind in the country.

Ebrahimi stated that more than 7 billion dollars have been invested in this complex and clarified: More than 40 large industrial complexes operate in this sub-category and about 25 thousand people are directly employed in it.

Referring to the economic effects of the steel industry, a member of the Iranian Steel Association said: Steel industries create between 10 and 20 times indirect employment in addition to direct employment due to their infrastructural nature and wide connection with other economic sectors. Therefore, the development of this industry can play an important role in the economic prosperity of the country.

Referring to the plans made for 1405, he said: In this year, the value chain of the collection has been completed in accordance with the goals foreseen in the initial vision. Also, this complex has significant mineral reserves and more than 200 heavy mining machinery and has a large fleet for mining operations.

Ebrahimi continued: In the iron ore sector, several processing factories and in the steel sector also large production units operate in this complex. In the field of copper, the production chain is followed using a knowledge-based method and claiming to be innovative at the global level.

Referring to the production of raw materials and auxiliary materials needed by steel industries within the complex, he said: the activity of coal mines, coal washing plants and lime production units has reduced the dependence of the complex on the supply of raw materials and auxiliary materials from outside the production chain.

Supplying electricity to industries through a dedicated power plant

Referring to the dependence of the steel industry on energy and water, the member of the Iranian Steel Association said: for sustainable energy supply, a combined cycle power plant with a capacity of 500 megawatts has been built, the gas part of which was put into operation in 1403, and the steam part of it was put into operation at the beginning of 1405.

He added: With the completion of this power plant, it is possible to supply the required electricity of the complex and part of the produced electricity can be injected into the country's electricity grid.

Ebrahimi also pointed to the measures taken for sustainable water supply and said: With the implementation of the development plan for the sewage collection network in Kerman city and the construction of a treatment plant, the water needed by the industries of this complex will be supplied from the urban sewage treatment plant.

He continued: In addition to reducing the pressure on underground water resources, this action has helped to solve one of the long-standing problems of Kerman city in the field of sewage. Due to the geological conditions of the region and the difficulty of water penetration in the soil, sewage management has always been one of the challenges of this city.

Steel exports are subject to economic conditions and exchange rates

In response to a question about the group's export targets at the end of 1405, Ebrahimi said: Currently, the steel production capacity of the country is more than 40 million tons, and the amount of export and domestic supply of steel products is affected by economic conditions and market components. Therefore, it is not possible to determine a specific target for direct export without considering these factors.

Referring to the effect of the exchange rate difference on producers' decision to export directly, he said: When the gap between the free exchange rate and the exchange rate used in official mechanisms increases, the producer's incentive to export directly and return the currency from exports increases.

The member of Iran Steel Association added: In such a situation, some businessmen and economic activists who need currency to import goods and meet their needs prefer to buy and export steel products from domestic producers in order to provide the currency they need. This issue affects the supply of steel products inside and outside the country.

He emphasized: The choice between domestic sales and direct export depends on the market conditions, exchange rate and economic interests of the producer, and for this reason, a fixed ratio cannot be considered for the direct export of this collection.

Ebrahimi further said about the listing plan of Foulad Company in the capital market: the listing of this company in the Tehran Stock Exchange is one of the group's medium and long-term plans, and the necessary negotiations and preparations are being followed in this regard.

He expressed his hope that if the steps are completed and the necessary preparations are made, the shares of this company will be offered in the stock market.

In response to a question about the amount of use of bank facilities and debt to Pasargad Bank, a member of the Iran Steel Association stated: The establishment of large steel industries requires significant investment, and due to the need to achieve economic scale, it is not possible to build these units with limited funds.

He added: There are two main ways to finance such projects; First, government investment from public revenues and oil resources, and second, the use of banking resources and non-government funds. Many of the country's large industries were created with public resources in the past and then handed over to the private sector in the process of privatization.

Ebrahimi stated that the financing of large industrial projects through banking resources can be the basis of economic development, and clarified: In this collection, the resources provided in industrial infrastructure, construction of factories and creation of production capacity have been invested.

He continued: About 25,000 people are directly employed in this complex, and besides that, significant indirect employment has also been created in the supply chain and related activities.

The member of Iran Steel Association emphasized: The facilities used for the development of this complex have been used to create industrial capacity and employment inside the country, and the resulting resources have been converted into factories and production infrastructure. According to him, these investments are being exploited and the repayment of financial obligations is also underway.

Referring to the necessity of evaluating the performance of large economic enterprises, Ebrahimi said: to check the effectiveness of facilities, the amount of investment, production capacity, created employment, economic efficiency and the method of reimbursing resources should be considered together.

Also, in response to a question about the status of shareholders and the capital increase process of companies, he stated: Administrative processes and requirements related to capital increase can be time-consuming, and companies may face difficulties in completing legal procedures and obtaining the necessary permits.

Ebrahimi, referring to the experience of following up the capital increase in the group, said: sometimes companies face numerous regulatory and administrative problems in order to advance the processes related to capital increase and have to go through various steps; An issue that can prolong the process of financing and implementing development programs.

He emphasized the necessity of facilitating administrative processes and providing a suitable environment for financing production companies.