The project with a capacity of 550,000 tons of pellets per year is now more than 80% complete, Metal Expert reported.
If funding comes and capital requirements are fulfilled, the plant will become fully operational by the end of July, local sources said.
“The plant is expected to be commissioned at the end of July-early August 2017,” Keyvan Jafari Tehrani, the head of international affairs at Iron Ore Producers and Exporters Association of Iran, announced.
According to Financial Tribune, the iron ore for the new pelletizing asset will be supplied from Baba Ali and Galali mines. The pellets are expected to be distributed to local direct-reduced iron producers and steelmakers to cover the growing needs in melting feedstock, amid the implementation of government plans for higher crude steel output.
Expansion in the pellets segment will help fully satisfy the needs of local steelmakers and boost shipments abroad, taking into account current plans to withdraw an export duty of 15%.
As per a roadmap, pellet production is expected to rise from the current 24 million tons to 48 million tons by 2018 and 85 million tons by 2025.