Ali Rasoulian, Chief Executive Officer of Foolad Sangan Mining and Industries Company, emphasized the need to develop mineral reserves in parallel with strengthening transport and energy infrastructure and deepening the value chain through to direct reduced iron (DRI) production.

Speaking at a meeting held at the Iran Chamber of Commerce, attended by the Minister of Industry, Mine and Trade, representatives of the industrial and mining sectors, and senior industry executives, Rasoulian outlined his views on the development priorities of the mining and mineral industries.

He stated that over the past two years, expanded exploration activities and the identification of new reserves in the Sangan region had made the Sangan mine the largest iron ore mine in the Middle East. He stressed that the mine and the development of mineral industries in the region deserved particular attention, noting that increased exploration capacity would not deliver its full potential without adequate supporting infrastructure, including rail and road networks, water resources, and reliable energy supplies.

Rasoulian described Sangan as one of the country’s major centres of mining and mineral-industry activity, adding that the expansion of exploration in recent years had made it increasingly necessary to reassess the region’s infrastructure capacity. From an economic perspective, he explained, an increase in accessible mineral reserves can translate into higher production, employment, and value added only when an integrated network of supporting infrastructure is developed alongside it, covering every stage from extraction and processing to the production of final products.

Representing the industrial, mining, and mineral-processing sectors at the meeting, the CEO of Foolad Sangan highlighted two fundamental priorities: infrastructure development and deeper value-chain integration. He noted that these two priorities are technically and economically interdependent, since expanding extraction capacity without reliable access to transport routes, energy, and water could increase production costs and leave part of the mine’s potential capacity underutilized.

On the subject of transportation, Rasoulian identified the expansion of rail lines and improvement of the road network as among the most important prerequisites for scaling up mining operations. Given the large volumes of minerals and intermediate steel products that need to be transported, the mining and steel industries are highly dependent on efficient rail and road infrastructure. Accordingly, expanding loading capacity, ensuring effective rail connections between mines and processing facilities, and upgrading road networks can help reduce logistics costs, improve supply-chain reliability, and alleviate transportation bottlenecks.

He further emphasized that the development of mineral and steel industries, particularly in mineral processing and direct reduced iron production, requires continuous and reliable access to electricity and natural gas. Under such circumstances, increasing the nominal capacity of production facilities without securing a stable energy supply does not necessarily translate into higher actual output. Seasonal restrictions and energy imbalances can also disrupt production schedules, reduce equipment productivity, and undermine the economic viability of investment projects.

Rasoulian described completion of the steel production value chain in Sangan as a strategic priority. He explained that when mineral resources are extracted and marketed only at the initial stages of the value chain, a significant share of their potential added value is generated in subsequent stages. Developing mineral-processing and direct-reduction facilities close to the mines can create the conditions for converting a greater share of the region’s mineral resources into higher-value products. Achieving this objective, however, requires the coordinated provision of infrastructure, investment, technology, and energy.

In conclusion, the CEO of Foolad Sangan underscored the need to expand rail and road infrastructure, secure reliable supplies of natural gas, electricity, and water, and deepen the value chain through to direct reduced iron production. This integrated approach aims to translate Sangan’s exploration potential into tangible production capacity and greater value creation across the mining and mineral industries.