News ID: 192686
Published: 0216 GMT May 13, 2017

MSC buys 16% stake in Iran's largest mining investor MMDIC

MSC buys 16% stake in Iran's largest mining investor MMDIC

Iran's largest steel producer, Mobarakeh Steel Company (MSC), bought a further 16.1 percent stake in Mines and Metals Development Investment Company (MMDIC) from a semi-governmental retirement fund.

MMDIC is Iran's largest mining investment company and a major shareholder in a number of domestic mining and steel producing companies, including the country's largest miners Gol-e Gohar Mining and Industrial Co., Chadormalu Co., and sponge iron and steel billet producer Arfa Iron and Steel Company, Platts reported.

The acquisition takes MSC's stake in MMDIC to 35.4 percent and makes it the investment company's largest shareholder.

A stock market specialist told S&P Global Platts that the deal was notable since it increases MSC's potential influence on price determination for long-term contracts for iron ore and pellet, as well as on export and other policies.

Gol-e Gohar and Chadormalu plan to resume exports of some of their iron ore pellet output this year, but are waiting for a government exemption from a 15-percent export duty on iron ore pellet.

Gol-e Gohar began its second 5-million-ton per year pellet plant in November 2016 and now has a nominal capacity of 10 million tons per year.

Iran's total pellet production capacity is 29.5 million tons per year, which is expected to rise to 35 million tons per year in the year to March 20, 2018, according to Iranian Mines and Mining Industries Development and Renovation Organization.

   
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