(Minews) - A deputy of Ministry of Industries, Mine and Trade has announced potential of Razavi Khorasan in mining industry as ‘second Assaluyeh’ in producing income.
Mehdi Karbasian told Mehr News on Monday that with $2bn of investments in Sangan mining area, “1.2 billion tons of definitive iron ore reserve, 15 million tons of pellets, and 17.5 million tons of iron ore concentrate will be extracted.”
“Iran is a leading country in terms of oil and gas; with depleting oil and gas reserves, in mining sector, Sangan in northeast Razavi Khorasan province has won the apt title of ‘second Assaluyeh,’ with the prospect of generating income, creating jobs and development,” said Karbasian; “Iran is in 10th place in underground reservoirs, with larger part still unexplored; only 100,000 square kilometers of the total 1,600,000 square kilometers of area have been explored for mine reserves,” he added.
“I believe that if we estimate the real reserves, Iran’s place will be far better than the current 10th place; in recent few years, Sangan has been explored and estimations indicate that it would have the potential to be a second Assaluyeh. With current explorations, still 12,000 square kilometers of Sangan are new to explorations, which would add the reserves 50 or even 100 per cent, since we have seen sparks of hope in finding huge ores,” Karbasian told Mehr News.
“Plan for Sangan predicts extraction of 17.5 million tons of concentrate and 15 million tons of pellet, feeding up to 9 concentrate and pellet factories, bringing economic boom, jobs and development to the region, changing the topography of the poor region,” said the deputy-minister. “A pressing issue is now water shortage in the region, traditionally and historically underdeveloped; a 60-km road is in preliminary stages of construction in cooperation of Ministry of Road.”
Karbasian added that pellets and concentrates are the prerequisite of steel production; this fact activates the downstream industries; “when operative, Gangan will bring annually $200-300 million in income; we need $2bn investment in the region to make the soil into value-added product,” he rejoiced to say. “Each dollar invested in mining industry becomes at least three-fold in value-added products; currently, a conglomerate of 5 consortiums are among the investors of Sangan; Mobarakeh Foulad Co., National Development Co., Khorasan Steel Co., and Gostaresh Foulad Co., along with two Chinese and four Iranian companies will work in the project,” Karbasian said.
