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The technical aspects of the project have been agreed and the contract will be signed within the next couple of months, Steel First has heard.
The plant will have a steelmaking capacity of 1.5 million tpy and a rolling capacity of 3 million tpy in the first phase. To balance steelmaking capacity with rolling capacity, another meltshop of 1.5 million tpy is planned for a second development phase, Golgohar said.
The plant will be equipped with a 200-tonne electric arc furnace (EAF) and a one-strand continuous casting machine (CCM) able to cast thin slabs.
The rolling mill, which will be fed by hot slab, will be able to produce hot rolled coil of 1-15mm thicknesses, mainly for production of API (American Petroleum Institute standard) pipes and for use in the auto industry.
Construction of the plant will take 48 months.
In preparation for supplying the mini-mill with direct reduced iron (DRI), Golgohar is already undertaking construction of a DRI mega module of 1.7 million tpy. Construction has progressed more than 65% physically so far.
The new mini-mill and the DRI module under construction are both at the Golgohar iron ore mine in Sirjan, Kerman province, in the south of Iran.
A consortium made up of the China Metallurgical Group Corp (MCC) and Iran’s Karoun Dez Dasht (KDD) has won a tender to set up a continuous hot strip mini-mill for Golgohar Iron & Steel Development.