Production units

Pelletizing processes of Sangan complex in September 2012 in two phases of infrastructure and industrial factories were key. Sangan is a city in Khaf city of Khorasan Razavi province, which according to the general population and housing census in 2016, the population of this city was 12,500 people in 3,200 households; Which has the largest iron ore mine in the Middle East.
With the inauguration of this unit, which is named after General Shahid Qassem Soleimani, the pellet production capacity in Sangan Khaf region exceeded ten million tons per year.
The construction of Simidco pelletizing plant, in addition to helping to solve the problem of pellet shortage in the country’s steel industry, has an important role in completing the value chain of Khuzestan Steel Group. As a unique feature, the raw materials of this pelletizing plant are supplied from within this plant.
The factory has been set up with an investment of 115 million Euros and 2 thousand billion Rials and has created employment for nearly two thousand people. The design, engineering and execution of the project has been done by Iranian specialists and more than 50% of the equipment of this factory is made in Iran.
This unit was able to reach nominal capacity within a month, while this is usually done within a year. The tech owners were surprised by the start-up and capacity building of the plant during the Corona, sanctions and the presence of foreign experts.
According to the pre-determined plan for the production of the first year of the factory, the daily production of 7,800 tons of pellets was predicted, which in less than one month from the start of the factory, with a production ceiling of 8,300 tons of pellets per day of production capacity passed.
The first production shipment of the pelletizing plant of Simico Company has been charged to a direct reduction furnace in Shadegan Steel Company. The results of the production of sponge iron in this company indicate the high quality of the pellets produced in Simidco Company.
The plant is designed in a complex with a capacity of 5 million tons per year, which after the successful launch of the first phase, the growth of the company continues to grow.
At present, the total nominal capacity of pellet producing units in the country is about 48 million tons and the nominal capacity of projects under construction is about 25 million tons. The share of Sanabad Inclusive Development Industrial and Mining Company (Simidco) of this amount is 2.5 million tons and equivalent to 3.5% of pellet production to 1404.
The following are the reasons for the pelletizing project of Sangan complex of Simidco Company:
– High added value of pellets compared to other steel products such as concentrate, sponge iron and ingots
– Market needs in accordance with Vision 1404
– Special regional advantages
– Growth in market demand due to scrap shortage
– Lack of production capacity of sponge iron designs due to lack of pellets in the chain and market attraction towards it
– Prevent the sale of raw iron ore and concentrate and increase its added value near the mine
– Existence of rich sources of iron ore
– Existence of rich gas resources in the country
– A suitable platform for the implementation of environmental measures
– Complete the process of access to consumer markets and marketable goods

Introduction of filtration project
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Considering the problem of water shortage in recent years and the establishment of aquifer industries in the Sangan Ahang rock mines, with the aim of optimizing water consumption and recycling of waste water, a comprehensive water plan was proposed and implemented in Sabad Inclusive Development Industrial and Mining Company.
The project has been more than 85% complete with a completely indigenous design and investment (1150 billion rials + 5.5 million euros).
One of the main benefits of the plan to preserve the intrinsic value of water is the recovery of 85% of the water along the waste of the production line, with the aim of preventing the wasteful use of underground resources and preventing environmental pollution.
Rial value due to cost reduction after the implementation of the annual plan will be at least 650 billion rials.
In the year that has been named as the leap of production by the Supreme Leader, with the implementation of the mentioned plan, the maintenance and continuation of production and employment of 40 people will directly fulfill the slogan of His Majesty.