TEHRAN- Preserving production is the priority in steel sector of the country, ILNA quoted Iranian Deputy Industry, Mining and Trade Minister for Mining Affairs Jafar Sargini as saying on Saturday.

Referring to the problems created by the sanctions, the official said that under the sanction condition the steel producers prefer to use the foreign currency for continuing their production process; therefore, implementation of development projects comes in the second place.

He although said that Iran’s annual steel production is planned to reach 45 million tons by the Iranian calendar year 1400 (March 2021-March 2022).

Referring to the sanctions, Sarqini noted, “All those who have imposed sanctions against Iran aim to destroy he country’s production capabilities; therefore, the Ministry of Industry, Mining and Trade prefer that the steel producers focus first on production and in this due development projects with the physical progress of over 70 percent will also help achieve this target.”

On June 15, the official had announced that the country’s annual crude steel production is planned to reach 30 million tons in the current Iranian calendar year (ends on March 19, 2020).

The official put Iran’s crude steel production at 25 million tons in the past year, Tasnim news agency reported.

Sarqini had also announced that Iran will inaugurate steel projects with the capacity of at least 10 million tons during the current Iranian calendar year.

Meanwhile, in a press conference on June 8, the deputy minister said the ministry has taken necessary measures to maintain the country’s metal exports despite the U.S. sanctions.

“We have established a special working group in the ministry which is closely assessing the situation and making necessary arrangements to mitigate the impact of U.S. sanctions,” Sarqini told the Tehran Times in the press conference.

The official noted that it is expected for the exports from the country’s mining sector to, at least, reach the last year’s $8.5 billion by the end of the current Iranian calendar year.

“We won’t also have any problems regarding the supply for the domestic consumption in the current year,” he added.

Asked about foreign investment in the industry, the official noted that currently near $1 billion of investment is required for equipping new mines and overhauling some equipment in old ones and over $400 million is also required in exploration and research sectors.

“We hope that both foreign and domestic investors take the chance to enter this lucrative industry,” he added.

Mentioning some of the ministry’s incentive programs for encouraging exports, Sarqini stated, “In close cooperation with the customs administration, the industry ministry has significantly moderated the base-prices for metals and minerals in order to ensure the exporters.”

MA/MA