Ample scope for joint development of mines by Oman and Iran

Even more opportunities will open up after the removal of the sanctions against Iran and the full operation of the planned shipping lines between the two countries, said Abbas Doagouei, managing director of Gate Investment Delta.

Speaking to the Times of Oman, Doagouei, who is also an investment consultant at Golgohar Mining and Industrial Company, said Gate Investment Delta is affiliated with Golgohar company, which is one of the largest iron ore and iron pellet producers in Iran.

Golgohar’s products

“Gate Investment Delta was established in Oman around five years ago. We sell Golgohar’s products like iron ore concentrate, sponge iron and other iron and steel products in Oman and other international markets,” Doagouei noted.

The products exported from Iran to Oman are either used in Oman or re-exported to other countries, he said on the sidelines of the first Oman Minerals and Mining Exhibition and Conference held recently in Muscat.

“In addition, we source equipment for Golgohar company from Oman and other countries,” Doagouei said.

Commenting on Golgohar company, the official said it is located in Kerman Province,around 55km southwest of Sirjan City, which is very rich in mineral resources, including coal, copper, gold and most importantly, iron ore.

Mines

Golgohar’s mines contain six ore bodies spread over an area of 40 square kilometres, with an estimated deposit of 1.1 billion tonnes in total. The major ore body has a deposit of more than 650 million tons.

Doagouei also explained that Golgohar company has an annual net profit of about $500 million and has around 10 factories involved in processing iron ore and producing iron ore concentrate, pellets and sponge iron, all with the use of modern equipment and machinery.

Export services

According to him, the company uses a train with 700 wagonsto transport the products from Golgohar to the southern Iranian port of Bandar Abbas, from where the materials are shipped to other countries. “Around 2 million tons of materials are exported by the company annually,” he said, adding that Golgohar company has around 3,000 personnel.

The managing director of Gate Investment Delta said his company in Muscat is ready to handle any request for Golgohar’s products.

Doagouei also encouraged Omani and other foreign companies to invest in some of the projects that Golgohar is implementing.

Projects in Iran

“There is a project for steel production in Sirjan, which is worth around $330 million,” he said, adding that foreign investors can also invest in water pipeline projects.

Another project worth around $660 million involves constructing a pipeline from Bandar Abbas to Golgohar and to Sarcheshmeh in Rafsanjan and then to Yazd, Doagouei explained.

“We have implemented the first phase of the project for laying a 300-km pipeline and a water desalination plant in Bandar Abbas with a daily production of 200,000 m3 is about to start its operation,” he said.

Foreign investors can participate in the construction of the remaining sections of the water pipeline and another desalination plant that is required, Doagouei noted, adding that there is a plan to build a power plant as well.

Oman plans

Asked about Golgohar’s projects in Oman, he said the company had requested around two years ago for allocation of an area for mineral exploration in Ibra.

“The initial agreements were made but the plan has still not been finalised due to some differences of opinion on the size of the area,” he said.

“Also, we have obtained a land in Soharport and there is a plan to establish a steel factory there but it can only be set up if the Ibra plan is finalised. If enough deposit is available there, minerals can be transferred to the Sohar plant where iron ore concentrate can be produced,” Doagouei added.

Exchange of expertise

Additionally, he said Iranian and Omani companies can share knowledge and experience in the mining sector.

“For instance, in Golgohar, we are keen to offer our expertise to companies in Oman in the fields of exploration, processing and steel production,” noted the investment consultant at Golgohar.

There are 600 engineers specialised in mining and minerals industry at Golgohar, Doagouei concluded.