Iran's output of sponge iron surges by 11.6 percent in 5 months yr/yr
Date
9/23/2024 4:19:54 AM
(MENAFN) Iran's production of sponge iron saw a notable increase of 11.6 percent during the first five months of the current Iranian calendar year (March 20-August 21), according to data from the Iranian Steel Producers Association (ISPA). The total production during this period reached 17.506 million tons, up from 15.693 million tons in the same timeframe last year. This growth is particularly significant given the backdrop of U.S. sanctions that have heavily impacted various sectors of the Iranian economy.
Sponge iron, or direct reduced iron (DRI), is produced by reducing iron ore—available in lumps, pellets, or fines—using reducing gas or elemental carbon derived from natural gas or coal. Many types of iron ore can be utilized in this process, allowing for flexibility in production. Despite the challenges posed by sanctions, Iran's mining sector has shown resilience, with sponge iron production emerging as a standout example of growth amid economic difficulties.
The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), which is the country's largest metals and mining holding, attributes the increase in sponge iron output to the establishment of new production facilities. IMIDRO has adopted a new strategy that encourages private sector participation, enabling the launch of several projects aimed at boosting sponge iron production in recent years. This approach not only aims to enhance output but also seeks to strengthen Iran's overall mining sector in the face of ongoing economic challenges.
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