Finland's engineering group Outotec has won an order for design and delivery of technology and services for an iron ore pelletizing plant in Iran, the company has said.
Bafgh Mineral Complex Iron and Steel Industry Company in Iran’s central Yazd province has awarded Outotec as part of its greenfield investment program to build a new plant to produce 5 million metric tons of iron ore pellets a year.
Outotec said the parties have agreed not to disclose the contract value but such projects normally range worth between $87-$109 million, depending on scope and specification.
The Finnish group said its work in the project includes providing the technology license, basic engineering of the pelletizing plant, detailed engineering and supply of proprietary and key equipment and automation, as well as advisory site services for installation, commissioning and start-up.
The company said the new plant is expected to become operational in 2018.
Platts quoted head of Outotec's Europe, Middle East and Africa region Adel Hattab as saying that the company’s pelletizing technology was selected due to its strong track record in Iran.
“Our technologies are widely used in the Iranian iron ore and copper operations, as Outotec has delivered sustainable technologies to Iran since 1970s,” he said.
He also said the company had applied for all the relevant export approvals from export control authorities and received all necessary permits to ensure that the technology delivery does not collide with the existing sanctions regime.
Last month, an official said Iran would soon receive $20 million in first installment from a $1 billion investment line for development of the Middle East’s largest zinc mine in Mehdi Abad of Yazd, jointly financed by a consortium of Iranian, Omani and Australian companies.