TEHRAN, May 13, YJC - Mobarakeh Steel Co. (MSC) is now the majority shareholder in Iran's largest mining investment company after buying a further 16.1% stake in it.
TEHRAN, Young Journalists Club (YJC) - "
The purchase raised MSC’s stake in Mines and Metals Development Investment Co. (MMDIC) to 35.4%, making it the investment company's largest shareholder, media reports said on Saturday.
MMDIC is a major stakeholder in a number of Iranian miners and steel producers such as Golgohar and Chadormalu.
The latest coup by MSC, which is Iran’s largest steel producer with 7.2 million tonnes per year, is set to raise its influence on price determination and sales policies.
Mobarakeh is currently under the European Union’s anti-dumping watch. Europe’s steel lobby group Eurofer has accused the company of "trade distorting measures" on its exports of hot rolled flat steel to the bloc.
In April, Khouzestan Steel Company (KSC) said it had overtaken Mobarakeh as Iran’s biggest steel exporter.
KSC exported 1.9 million tonnes of billet and slab in the Persian year which ended on March 20, posting a historic record for Iran's steel industry, the company’s sales deputy Bahman Tajalizadeh said.
The country exported 4 million tonnes of steel last year, according to director of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mehdi Karbasian.
Steel was Iran's largest export item after oil, gas and petrochemicals last year, partly because of the slump in domestic construction.
The country has been boosting steel production, targeting an output plateau of 55 million tonnes per year by 2015.
Iran enjoys an advantage because production costs at the majority of its steelworks are internationally competitive because of low energy prices in the country.
Currently, the nation produces 16 million tonnes, which is one percent of the world total. A statement on IMIDRO’s website says exports are expected to hit 20-25 million tonnes by 2025.