Mittal in $1bn deal with Mahan to produce iron in Iran
TEHRAN, March 10, 2016
Mittal Steel has signed a €1 billion ($1.09 billion) deal with Mahan Industries and Mines Development Company, a subsidiary of Iran's Tourism Financial Group, to produce iron in southern Iran, according to a report.
The contract envisages extracting iron and the establishment of a processing plant in the country’s southern province of Kerman, said the Iran Daily report.
Mahan, which owns a major mine near Sirjan which is considered to be one of the largest in the country with a reservoir of about 1.2 billion tonnes, has not specified which iron mine will be the subject of the deal.
Meanwhile, the Tourism Financial Group said it expects the deal with Mittal to help transfer the technical knowledge in the steel industry to Iran, said the report.
It also expects the deal to help Iran export steel products to regional and international markets through partnership with Mittal, it added.
