Ali Rasoulian, CEO of Sangan steel company

The entry of Foolad Mobarakeh Steel Company into iron ore mining through Sangan steel company Mining & Industrial Company marks a new chapter in the group’s efforts to develop and integrate its steel value chain. It also underscores the strategic importance of Sangan in securing a stable supply of raw materials for the steel industry.

The initiative is being pursued by leveraging the region’s substantial mineral resources, established industrial infrastructure and the technical expertise and operational capabilities of Sangan steel company.

Ali Rasoulian, CEO of Sangan steel company, said during a visit to the Sangan iron ore mine, in an interview with the company’s Public Relations Department:

“We have made a serious entry into mining operations. With the procurement and deployment of mining equipment, we expect to accelerate the transfer of iron ore to the Sangan steel company complex.”

According to Rasoulian, Sangan steel company, with an annual production capacity of 10 million tonnes of concentrate and pellets, plays a critical role in supplying raw materials to Foolad Mobarakeh. Its location within the Sangan mining region also provides significant potential for expanding mining activities and further completing the steel value chain.

Rasoulian added that the development should be viewed as more than an operational expansion at Sangan steel company. In recent years, Foolad Mobarakeh has pursued greater involvement in mining and extraction as an essential component of its strategy to secure a more reliable and sustainable supply of feedstock.

The CEO of Sangan steel company continued:

“In addition to its joint-venture and wholly owned mining assets, Foolad Mobarakeh has also become active in iron ore extraction and has placed the expansion of mining operations on its agenda to increase feedstock supply. Given Sangan steel company’s potential and existing capabilities, the Mobarakeh Group has entrusted Sangan steel company with this major responsibility.”

Mining: The Starting Point of the Steel Value Chain

Rasoulian emphasized Sangan’s strategic position in the future of Iran’s steel industry, stating:

“Mining is the starting point of the steel value chain, and any disruption in extraction and raw-material supply can have a direct impact on the other links of the chain.”

From this perspective, Sangan steel company’s entry into mining operations represents a new link in the integration of Foolad Mobarakeh’s steel supply chain—a chain that begins with mining, continues through iron ore extraction and processing, and ultimately leads to the production of steel products.

“Sangan steel company’s Credibility, the Mobarakeh Group’s Confidence”

The statement “Sangan steel company’s credibility, the Mobarakeh Group’s confidence” has taken on a more tangible meaning through this development.

Foolad Mobarakeh’s decision to rely on Sangan steel company’s capabilities for entering one of the most strategic stages of the steel value chain—iron ore extraction—reflects the operational capacity and expertise that have been developed within the Sangan mining region.

The development therefore represents not only an expansion of Sangan steel company’s operational scope, but also a step toward deeper integration between mining resources and downstream steel production within the Mobarakeh Group.