The plan to create a steel production unit with the aim of optimal use of the country’s hematite resources was on the agenda of Amirkabir Khazar Steel Company stakeholders based on the priorities that are given to steel production and increasing the production capacity up to 55 million tons per year with the aim of increasing exports in the horizon of 2025, the vision document and the fourth development plan, as well as the report of the Parliamentary Research Center on the need for investment and creating added value in the country’s hematite iron ore resources (based on the fact that magnetite iron ore is used as a raw material in other steel projects of the country). Real investors of the Complex decided to establish Amirkabir Arak Steel Company and develop studies and implement it as a national project applicable in the private sector and recruited relevant experts in the newly established Complex, due to the innovation of the mentioned plan in the country’s steel industry and also its economic and national justification and preventing the sale of raw materials of a part of the country’s mineral resources and consequently increasing employment as well as favorable importing of foreign currency to country. It is worth noting that the project was one of the priority plans of the Ministry of Industry, mine and trade from the beginning and was included as the only private sector plan in the project to complete the country’s steel production chain under the fourth development plan by the mentioned ministry.
B- Design specifications
Construction and launch of 3 industrial units with the following specifications in Kheir Abad industrial town located in Markazi province (Arak city)
- SL / RN direct reduction unit with a capacity of 450 thousand tons per year (3 modules of 150 thousand tons)
- Steelmaking unit with a production capacity of 513 tons of steel ingot per year
- Power supply unit as a 36 MW power plant by WHRB method
C- Key benefits of implementing project
- Due to the fact that in other sponge iron production projects, magnetite should be used and hematite iron ore is exported in raw form due to the lack of need in the country, it is possible to produce steel from hematite iron ore in the country’s mines instead of magnetite iron ore in order to prevent the sale of raw materials in the country.
- Lack of need to invest more in the production of upstream products compared to other sponge iron production projects in the country (no need to invest in the production of concentrate and pellets)
- Lack of need to use natural gas in steel production and help preserve the environment and non-renewable energy
- Possibility of generating 36 MW of electricity from the project exhaust gases and thus high economic efficiency of the project.
- The project site is located in Markazi province (Arak city) and it is possible to use the facilities and potential of the province, proximity to railway lines and access to appropriate transportation lines with the ability to establish a railway station at the project site
- Proximity of the project site with power transmission lines and no need for investment to transfer electricity to the project site
Construction project of Steel billet production plant
Amirkabir Khazar Steel Complex has constructed a steel billet production plant in line with the development plan of the steel industry, on a 4-hectare land, located in the Rasht industrial town, with a nominal capacity of 375,000 tons per year. According to the schedule, this factory will start its commercial operation by early 2023. It is necessary to mention that supplying some of the raw materials needed by Amirkabir Khazar Steel Company and other companies is considered as one of the goals of constructing this industrial unit.