0249 GMT May 25, 2019
Ardeshir Sa'ad Mohammadi said that the project is in line with a master plan for steel production, reported imidro.gov.ir on Saturday.
He said, "The Steel Master Plan seeks to achieve a capacity of six million tons for blast furnace which requires 3.7 million tons of coke and this in turn calls for producing five million tons of coal concentrate."
The IMIDRO official continued, "At present, a project to raise coal production capacity to 2.7 million tons is in progress, of which 750,000 tons is being implemented in Khomrud and three projects in Tabas."
Turning to these three plans, he said that two projects are being run by the private sector with a capacity of 400,000 and 750,000 tons while another project with an 800,000-ton capacity will be carried out by IMIDRO and with Chinese financing.
Once the new projects go on stream, 1.35 million tons of coal concentrate will be produced and this will help overcome supply problems, said Sa'ad Mohammadi.
He noted that in the blast furnace method, 0.6 ton of coke is required for producing one ton of steel adding that 1.4 ton of coal is used to produce one ton of coke.
Sa'ad Mohammadi referred to infrastructure affairs and said, "We need €13 billion for developing the infrastructure while the construction of steel mills will require €8 billion."