Digital transformation and smart technologies in the mining and mineral industries are the keys to excellence, progress, and the adoption of new-generation technologies and automation. Sangan-Khorasan Steel Mining Industries Company (SSMIC) has embraced this vision as a guiding light for its development, making rapid strides in digital transformation, process automation, and modernization. Drawing on global smart and technology-driven models, the company has updated its systems and processes across production, commercial operations, safety, logistics, maintenance, and more—positioning itself today as a symbol of technological leap in the steel value chain.

Global trends in value chains are shifting toward the integration of modern technology, digital transformation, and process automation, rendering traditional methods increasingly obsolete. Technological changes in the steel value chain are also driven by climate change, environmental regulations, declining ore grades, and rising energy and production costs. Only businesses with a transformational, forward-thinking approach can lead in this competitive landscape. Process modernization and technological updates are the strategic disruptions needed to enhance competitiveness and efficiency, minimize resource and energy waste, and pave a new path for industry stakeholders.

The Sangan region in Khorasan Razavi is one of the country’s most significant mining hubs and holds a strategic place in the national steel value chain. With substantial iron ore reserves and the presence of reputable industrial and mining firms, the region offers a prime opportunity to implement innovative production models. SSMIC stands out as a pioneer in technological transformations and modernization in this region, continually progressing on the path of improvement. Amid the surge of digital transformation, the company has prioritized the development of digital and technology-oriented infrastructure, aiming to create new operational models and utilize the latest production technologies—an initiative that plays a crucial role in improving processes and overall performance.

A Guiding Light for Development

Heavy reliance on manual labor, outdated planning methods, aging machinery, fragmented data systems, a technological gap in production, and environmental challenges are some of the major hurdles facing Iran’s mining and mineral sectors. These issues impact competitiveness, efficiency, and profitability. The solution lies in adopting advanced production technologies and updating processes—an area where SSMIC has taken significant strides. In all departments, the company utilizes the latest technologies and optimal efficiency to manage complex operations. In recent years, this prominent player in Iran’s steel chain has focused on digital transformation and modernization to enhance process performance and demonstrate a new benchmark in technological operation. The company’s core strategy goes beyond production capacity expansion; it focuses on improving process quality and organizational performance in all dimensions—an approach that has yielded valuable outcomes.

From raw material intake at the concentrate plant to the production of pellets as the final product, the entire process at SSMIC is fully mechanized and human-intervention-free. Screened iron ore is transported via conveyor belts for primary homogenization, optimizing feed size for concentrate production discs, increasing efficiency, and reducing energy use. The concentrate production process employs cutting-edge technologies, after which the product is transferred to the mixing section for raw pellet production. The raw pellets are screened and fed into the induration furnace, and the fired pellets are then transported via stacker reclaimers and conveyors to the product storage yard. Notably, SSMIC is the first company in Iran and the Middle East to implement a mechanized tailings stacking system, currently 70% complete. This project significantly advances the company’s environmental commitments. Beyond mechanization, SSMIC is actively charting a roadmap toward digital transformation, modernization, and technological upgrades.

This roadmap has been developed using Deloitte’s methodology and techniques, aligning technological and process transformations with global benchmarks. As such, SSMIC’s technological tools, processes, and business models conform to international standards and prepare the company for the Fourth Industrial Revolution, bringing about foundational and comprehensive change.

Asset Reliability and Predictive Maintenance

Maintenance is a critical function in any industrial operation, and timely, accurate execution directly affects performance across departments. SSMIC has implemented a structured preventive maintenance strategy to minimize breakdowns and downtime, thereby increasing efficiency and operational effectiveness. Typically, maintenance involves periodic system checks, but in preventive maintenance—an outcome of the Fourth Industrial Revolution—monitoring is continuous and targeted. High-precision instruments are used to measure vibrations and temperature, enabling timely maintenance scheduling. These efforts have significantly extended equipment life, reduced operational halts, boosted equipment efficiency, and lowered maintenance costs, thereby improving overall asset management.

A Trusted Model

Today, smartization and process automation are integral to sustaining industrial and mining operations. SSMIC, recognizing this necessity, is actively implementing smart technologies across all operations. The entire value chain—from suppliers to customers—is being digitalized. One recent development is the launch of an intelligent supplier communication platform to enhance transparency and electronic interaction, minimizing human error while improving accuracy and efficiency. This machine-learning-based system evaluates suppliers through various input variables and automatically compares the results to traditional methods for supplier selection.

SSMIC will soon launch a domestic product quality control system, ensuring accuracy and speed in procurement and quality monitoring through smart tools. The company has also fully integrated its procurement commission system, enabling automated, online processes that improve decision-making speed and eliminate inefficiencies. Its commitment to modernization also extends beyond its premises—smart cargo tracking, truck entry management, and automated weighing systems are already in place, enabling comprehensive real-time monitoring of transportation.

Modernized Safety Systems

SSMIC is also investing in modernizing its safety infrastructure, with a smart fire alarm and suppression system currently in development. Based on the Integrated Safety and Communication Management System (PISM), this initiative aims to build a smart crisis management framework. Once fully deployed, all safety and security data will be integrated, enabling unified analysis and intelligent monitoring across departments such as security, warehousing, production, and HSE—helping prevent incidents through real-time monitoring.

Utilizing Low-Grade Hematite Ore

SSMIC has made a major breakthrough by successfully using hematite iron ore for concentrate production—a milestone in leveraging low-grade ore reserves. This unique project is the result of domestic field research and is currently being implemented at an industrial scale. With a plan to build a 2.5-million-ton annual capacity concentrate plant using state-of-the-art technologies, the company addresses the challenges of processing low-grade ores, which cannot be efficiently extracted through conventional means.

All quality control analyses at SSMIC are conducted in-house using mechanized systems and advanced laboratory equipment. Devices like the ELTRA CSI sulfur-carbon analyzer, automatic Blaine tester, atomic absorption spectrometer, and XRF units ensure high-speed, accurate quality assurance without the need for outsourcing.

With its rapid pace of smartization and modernization, SSMIC is also focused on upgrading human capital. Initiatives include training programs, adoption of international HR models, and implementation of performance evaluation systems based on measurable, precise indicators.

What sets SSMIC apart in the race toward process modernization is its strategic integration of technology and innovation into organizational workflows—a forward-thinking approach that not only accelerates the company’s progress in line with global transformations but also makes it a trusted benchmark for navigating the complex path of modernization and renewal.