Page 53 - IRANRptAug20

9.1.10 ​Metallurgy & mining sector news
US tightens sanctions screw on Iran’s metals sector
Iran’s Qara-Aghaj titanium ore mine declared fully operational
The US Treasury Department on June 25 blacklisted four companies in Iran’s metals sector, as well as one German and three Emirati subsidiaries of Iran’s largest steelmaker Mobarakeh Steel Company.
In a statement, the Treasury Department added that the sales agents together generated tens of millions of dollars annually from foreign sales of Mobarakeh Steel Company products, contributing to billions of dollars generated overall by Iran’s steel, aluminium, copper and iron sectors.
“The Iranian regime continues to use profits from metals manufacturers and foreign sales agents to fund destabilizing behavior around the world,” Treasury Secretary Steven Mnuchin said in the statement.
The sanctions are the latest US effort to tighten the screw on Iran. The Trump administration strategy is to asphyxiate the Iranian economy to the point that Tehran surrenders to an agreement under which its influence in the Middle East, particularly in conflict zones, would be seriously curtailed and its nuclear and ballistic missile development programmes would be placed under controls stringent enough to satisfy the White House.
The latest sanctions action targeted Tara Steel Trading, a Germany-based subsidiary of Mobarakeh Steel Co; United Arab Emirates-based sales agents Pacific Steel FZE, Better Future General Trading Co and Tuka Metal Trading, all majority-owned by Mobarakeh Steel Co; and Iran-based Metil Steel, also majority-owned by the company.
Mobarakeh Steel Co, previously blacklisted by Washington, accounts for 1% of Iran’s GDP, the Treasury said.
The Treasury also blacklisted Iran-based aluminium, steel and iron producers South Aluminum Company, Sirjan Jahan Steel Complex and Iran Central Iron Ore Company.
Parisa Abedpour, deputy head of Iran’s Ministry of Industry, Mines and Trade in West Azerbaijan province, has informed the state-run IRNA news agency that Qara-Aghaj titanium mineral ore mine near the provincial capital of Urmia is now fully operational ahead of the planned construction of a processing plant.
Qara-Aghaj is estimated to have 208mn tonnes of titanium-bearing ore, with an average grade of 8.5%, according to ​historic exploration data​ gathered by the Iranian Society of Mining and Engineering and cited by Mining Magazine.
Iran exported only 150 tonnes of titanium in 2019, generating revenues of just $390,000, according to ministerial data.
Iran has a single titanium slag plant in operation. It is located in Kahnuj in the southeastern Kerman province. Its production capacity stands at 130,000 tonnes/yr of titanium dioxide concentrate and 70,000 tonnes/yr of titanium slag. The US stipulates that any sales to Iran of titanium—as well as of other metals including chromium, nickel and 60%-tungsten—are sanctionable by Washington. It states that the metals are potentially useful to Iran's nuclear and ballistic missile development programmes. Tehran has always insisted its nuclear programme is purely civilian in its nature and aims.
The output of Iran’s aluminium producers was recorded at aggregate 275,716 tonnes in the 2019/2020 Persian calendar year (ended March 20), marking an 8% y/y decrease, according to the Iranian Mines and Mining Industries Development and Renovation Organization.
Flagship producer Iran Aluminum Company (IRALCO) accounted for 177,348 tonnes, registering growth of 4% y/y.
53​ IRAN Country Report August 2020 www.intellinews.com