Aghajanlou: We will activate the surplus capacity of 20 million tons of steel.

According to IMIDRO's public relations, Mohammad Aghajanlou at the signing ceremony of the memorandum of understanding for a study on the development and operation of the Halegan and Shahini gas fields between IMIDRO & the National Iranian Oil Company (NIOC), stated: “The country's current crude steel production is about 30 million tons, but the installed capacity exceeds 52 million tons. This capacity will reach the 1404 vision target (55 million tons) by the end of this year.

He added: " This industry is one of the few industries that achieved the goals of the 20-year vision plan, companies are operating at low capacity due to energy shortages. This is while 70 percent of gas consumption in this industry is not for fuel, but rather for raw materials. The problem of electricity shortage in the summer is also due to gas shortage."

The Deputy Minister of Industry, Mine and Trade stated that the electricity consumption of steel companies cannot be met with solar power plants, adding that the needs of these factories can only be met by gas and combined cycle power plants. However, despite the initial commitment to 1,000 megawatts of solar power generation, this figure has since increased to 3,000 megawatts.

He continued: This measure helps the country's electricity grid, but perhaps the subsidiaries of IMIDRO will not be able to directly use solar power generation processes. Therefore, the main challenge for mining companies and mineral industries is electricity and gas; this shortage has led to a reduction in companies' profit margins and prevents returns on investments.

Aghajanlou, appreciated Mr. Bovard for his special attention to resolve the gas issue of the steel companies, also for accelerating the tasks carried out by him and IMIDRO’s colleagues, stated: We are ready to work in this field with all our strength.

At the end of this ceremony, a memorandum of understanding for a study on the development and operation of the Halegan and Shahini gas fields between IMIDRO & the National Iranian Oil Company (NIOC), was inked by Mohammad Aghajanlou IMIDRO’s Chairman of the Executive Board of Directors, and Hamid Bovard, the Managing Director of the National Iranian Oil Company.