Ali Rasoulian, CEO of Sangan steel company

Speaking at a meeting attended by the Minister of Industry, Mine and Trade, representatives of the industrial and mining sectors, and senior industry executives at the Iran Chamber of Commerce, Ali Rasoulian, CEO of Sangan steel company, outlined his views on the development of the Sangan mining region and emphasized the need to advance mineral reserves development in parallel with strengthening transportation and energy infrastructure and completing the value chain through direct reduction and sponge iron production.

Rasoulian said that, over the past two years, the expansion of exploration activities in the Sangan region and the identification of new mineral reserves have transformed the area into the largest iron ore mining district in the Middle East. He stressed that the region and the development of its mineral industries therefore require particular attention, noting that expanding exploration capacity without adequate supporting infrastructure—including rail and road networks, water supplies and energy infrastructure—would limit the ability to translate geological potential into effective production capacity.

“Sangan is one of the country’s major hubs for mining and mineral industries,” Rasoulian said. “The expansion of exploration activities in recent years has made it increasingly necessary to reassess the region’s infrastructure capacity.”

From an economic perspective, he explained, increasing accessible mineral reserves can translate into higher production, employment and value creation only when a comprehensive network of supporting infrastructure is developed alongside the mining operation, extending from extraction and processing to the production of final products.

Representing the industrial, mining and mineral-processing sectors at the meeting, the CEO of Sangan steel company highlighted two fundamental priorities: infrastructure development and greater depth in the value chain.

“These two priorities are technically and economically interdependent,” Rasoulian said. “Expanding mining capacity without reliable access to transportation, energy and water can increase production costs and leave part of the mine’s potential capacity underutilized.”

On transportation infrastructure, Rasoulian said the expansion of rail capacity and improvement of the road network are among the most important prerequisites for scaling up mining operations.

Mineral commodities and intermediate steel-chain products, he noted, involve high-volume transportation and therefore have a significant dependence on rail and road logistics. Expanding loading capacity, establishing efficient connections between mines, processing facilities and the rail network, and upgrading road infrastructure can help reduce logistics costs, improve supply-chain reliability and ease transportation bottlenecks.

The CEO of Sangan steel company further emphasized that the development of mineral and steel industries—particularly processing facilities and direct reduction units—requires continuous and reliable access to electricity and natural gas.

“Under such circumstances, simply increasing the nominal capacity of production units, without securing a stable energy supply, does not necessarily translate into higher actual production,” he said. Seasonal restrictions and energy imbalances can also affect production schedules, equipment productivity and the economic viability of investment projects, he added.

Rasoulian described the completion of the steel production value chain in Sangan as strategically important.

“If mineral resources are confined to the initial stages of extraction and supply, a significant share of their potential value will be generated further down the value chain,” he said. Developing processing and direct reduction facilities in proximity to mining operations can create an opportunity to convert part of the region’s mineral capacity into higher-value products. However, he stressed that achieving this objective requires the simultaneous provision of infrastructure, investment, technology and energy.

The CEO of Sangan steel company concluded by emphasizing the need to accelerate the development of rail and road infrastructure and secure reliable supplies of natural gas, electricity and water, while simultaneously deepening the regional value chain through sponge iron production.

According to Rasoulian, this integrated approach is aimed at converting Sangan’s expanding exploration potential into tangible production capacity and greater value creation across the mining and mineral industries.