India’s Mittal Steel signed a €1-billion contract on Tuesday to produce iron in southern Iran.
According to Press TV, the contract signed with Mahan Industries and Mines Development Company – a subsidiary of Iran’s Tourism Financial Group – envisages extracting iron and building a processing plant in the southern province of Kerman.
Mahan has not specified which specific iron mine will be the subject of the deal, but it owns a major mine near Sirjan which is considered to be one of the largest in the country with reserves of about 1.2 billion tons.
Mittal Steel is also expected to take charge of Mahan’s Bonab steel production complex near Tabriz (East Azerbaijan province) for a period of five years.
The Bonab complex has capacity of over 3.5 million tons/yr, and is considered the biggest private sector steel production project in Iran.