Steel industry infrastructures in dire need of financing for growth

TEHRAN, Dec. 25 (MNA) – Steel infrastructures of the country need €19 billion worth of financing for the development and growth.

Minister of Industry, Mine and Trade Mohammad Shariatmadari made the remark in Policymaking Council of 8th Mine and Steel Industry Outlook Seminar on Sunday, saying, “major portion of the abovementioned finance will be earmarked for the development of rail and electricity.”

The industry minister pointed to the 11 percent growth of crude steel production in the country as compared to a year earlier and said, “big steps have been taken in this sector in a way that the country managed to increase its share of steel production in the global level considerably.”

He pointed to the provision of infrastructures of steel industry of the country as an important issue and reiterated, “for this purpose, the country will need €19 billion worth of financial resources for the development of rail and electricity industry in particular.”

Turning to the comprehensive steel project in the country, he stated, “targeting for generating 5,000MW electricity will be put atop agenda.”

Shariatmadari referred to the provision of water and electricity and other infrastructures as the main requirements of steel production and reiterated, “of total €19 billion needed, five billion euro of which will be envisioned for the provision of water and electricity.”

The country will need about €600 million for equipping mines and mining sector while €8.5 billion financial resources is required for the development of steel sector in the country.

He placed special emphasis on the necessity of attracting foreign investment and setting up international participation as joint venture and added “more steps should be taken in this regard within the framework of joint venture (JV) partnership.”

About 100 million tons of new capacity will be actualized in the fields of concentrate, pelletizing, crude steel and direct reduction iron (DRI) within the framework of 73 new projects, he said, adding, “provision of iron ore and recession of domestic market is of the other challenges facing steel industry of the country, the issue of which will be put atop agenda of the country.”

He called on the private sector activists to take more effective role in strengthening and improving steel sector of the country.

The 3rd Policymaking Council meeting of Iran Mine and Steel Conference was held in the presence of deputy Ministry of Industry, Mine and Trade for mining and mineral sector, managing director of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), activists of country’s mines and mining sector, etc.


News Code 130608


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