The country’s steel industry ecosystem, from mining to processing, has faced serious shocks and crises. The discussion surrounding the reasons for this crisis is detailed and multifaceted; however, the smallest components of this industry, particularly small induction melting units (IF), will be the first victims of this entire crisis if they cannot quickly adopt strategies to manage productivity, reduce costs, and secure sustainable raw material resources.
To this end, Shahroud Steel Company, represented by the symbol “Frood,” is undertaking fundamental actions through comprehensive studies of capable reserves to secure hematite iron ore and coking coal required for its sponge iron production via the reduction of hematite in SL/RN rotary kilns.
Despite having limited exploratory and identification operations for these hematite reserves, Iran has the potential to sustainably supply the necessary resources for use in SL/RN kilns with capacities ranging from 100,000 to 200,000 tons. Additionally, Iran is home to one of the world’s most abundant sources of non-coking coal, which has yet to be explored and extracted adequately; nevertheless, the sustainable supply of this mineral is also reliable.
Overall, enhancing productivity through quality management of raw materials, achieving lower costs, and utilizing the thermal energy derived from this technology has motivated Frood to actively pursue the development of this upstream sector to ensure continued production and create the economic value expected by stakeholders.