According to the public relations correspondent, achieving production goals in mining and industrial units requires coordination and coherence across all production departments, proper access to all production inputs, and operational readiness of equipment and machinery. Sangan Steel Mining Industries Company (SSMIC) has paid special attention to these elements, advancing its production plans through various infrastructure projects, production system upgrades, and localization efforts. Equipped with modern machinery and technology and supported by skilled human resources, the company successfully reached its 2024 production targets of 5 million tons of concentrate and 5 million tons of pellets, setting a solid foundation for meeting 2025 production goals.

A well-structured production plan, coordination between processes to ensure timely access to resources and inputs, identification of organizational strengths and weaknesses, and ultimately reaching the highest productivity from available capacities are critical to maximizing planned outputs. A comprehensive program allows efficient management and control of production processes, ensuring timely delivery of orders and customer satisfaction. The goal is to optimize all resources, maintain stable production, improve raw material procurement, reduce production costs, and enhance profitability through increased efficiency.

Located in northeastern Iran, SSMIC—one of the region’s mining hubs—formulates its programs based on a thorough assessment of production factors and resources. Despite numerous production risks and challenges, the company has positioned itself as a dynamic player steadily achieving its objectives.

SSMIC’s Comprehensive Actions

One of the main concerns in the steel production chain is the uncertainty surrounding the consistent supply of quality raw materials. Addressing this challenge requires a targeted production leap plan throughout all segments of the chain. As a key upstream player, SSMIC has taken this seriously and plays a strategic role in supplying the steel industry’s raw materials. With a nominal annual production capacity of 5 million tons of concentrate and 5 million tons of pellets, the company exceeded its nameplate capacity in 2024 through timely equipment maintenance, efficient ore procurement, and inventory control.

Employing the latest production technologies is one of SSMIC’s key competitive advantages. All production processes are mechanized and closely monitored, improving the efficiency and yield of pellet and iron ore concentrate production. Operational readiness of equipment remains vital to achieving production targets. In this regard, the company successfully conducted its annual maintenance operation in March 2024—the largest of its kind in the Sangan region. This effort included 40,000 man-hours in mechanical work, 5,000 man-hours in industrial cleaning, 9,500 man-hours in electrical, instrumentation, and automation tasks, and 8,000 man-hours in ancillary activities. The pelletizing furnace underwent the most extensive repairs, ensuring uninterrupted operation for the entire year. As a result, SSMIC surpassed 5 million tons of pellet production—20% above its nominal capacity.

A consistent supply of raw materials and energy has always been a challenge for SSMIC. To meet pelletizing unit demands, the company has negotiated with suppliers inside and outside the Sangan area to secure timely delivery of iron ore. Energy shortages, particularly electricity and gas outages during seasonal peaks, pose additional threats. However, due to early negotiations with regional electricity and gas providers, SSMIC has mitigated many of these risks, though energy imbalance remains an ongoing issue. To further reduce energy consumption, the company continues to implement energy efficiency projects, aiming to improve productivity in high-consumption stages and identify systemic inefficiencies. A newly deployed integrated control system for power substations now enables comprehensive energy management and reporting.

Due to its ongoing focus on improving productivity, SSMIC ranked 56th among the top 100 Iranian companies and secured 1st place in Total Factor Productivity. It also led in profitability in the exploration, extraction, and auxiliary services group in 2023. These results confirm that SSMIC’s actions in raw material sourcing and production optimization have been effective. If the current strategy continues, the company is well-positioned to fulfill its production goals and drive forward a new phase of industrial growth. With its emphasis on comprehensive productivity, SSMIC is firmly establishing itself as a top-tier supplier of raw materials in Iran’s steel supply chain. Given its upgraded production lines, the company is expected to meet its 2025 targets of 5 million tons of concentrate and 5 million tons of pellets.

A Burden on the Steel Supply Chain

Despite recent developments, Iran’s steel supply chain still faces major challenges, especially in infrastructure, which directly impacts both production volume and quality. Among these issues, energy imbalance is a critical threat that—if unresolved—could severely affect the steel industry in the coming years. Solving this requires large-scale, targeted investments in the energy sector. Since sustained production depends on all segments operating in harmony, addressing energy issues and investing in gas field development are national priorities.

Steel sector stakeholders, including SSMIC, are planning to build or acquire power plants to overcome energy limitations. In line with Mobarakeh Steel Group’s development vision, SSMIC is now pursuing the construction of a 200-megawatt wind power plant—a project tailored to the region’s geographical potential.

SSMIC also has plans for sustainable water supply through urban wastewater collection, treatment, and pipeline transfer, indicating a proactive strategy to ensure production continuity with minimal disruption.

Transport system inefficiencies—including outdated infrastructure and low freight capacity—are significant bottlenecks in the production chain. Delays in raw material and product transportation hinder progress toward production goals. Although rail is the global standard for industrial transport, Iran’s rail network cannot yet adequately support the mining sector, placing additional strain on road transportation. SSMIC, due to its proximity to Sangan’s mineral resources and effective planning, has managed to alleviate some of these issues. However, logistical problems persist, especially in product delivery. To address this, SSMIC has purchased 500 trucks to transport goods to Mobarakeh Steel Company in central Iran and Bandar Abbas in the south for export.

To reduce dependency on imports and strengthen domestic capabilities, SSMIC prioritizes localization of parts and equipment. This not only speeds up maintenance operations but also lowers costs and boosts internal know-how, ultimately supporting production goals.