Iran-based Zarand Iranian Steel Company (Zisco) signed a contract with the Czech Republic's OSTROJ to import machinery and engineering services in the field of underground coal mining, said a report.

A European bank was also present at the signing ceremony of the agreement, added Iran Daily News report.

The joint stock company OSTROJ is a leading manufacturer of mining machinery suitable for deep mining conditions plus a range of other engineering products. With over 60 years of manufacturing experience, the company is able to provide turnkey solutions and a full range of coalface equipment for coalfaces, including longwall mining operations.

As per the contract, 720,000 tons of coal per year is expected to be mined from Khomroud mine in the southeastern Iranian province of Kerman, it said.

Zisco is one of the subsidiary companies of the Middle East Mines Industries Development Holding Company (MIDHCO), added the report.