Mining News -The projects included a direct-reduced iron plant established by Sabzevar Pars Steel Company and a pellet production plant set up by Khorasan Steel Company.

Located in Khorasan Razavi Province, the plant has the capacity to produce 800,000 tons of DRI per year in its first development phase, most of which will be used to feed SPSCO`s bloom and billet production.

The president inaugurated the DRI plant at 12 p.m. local time.

DRI, also called sponge iron, is produced by using a reducing gas made from natural gas or coal. It is most commonly made into steel using electric arc furnaces. About 70-75% of Iranian mills use EAFs.

According to Minews, about 7.5 trillion rials ($178.5 million) were invested in the project in a joint venture between SPSCO and Iranian Mines and Mining Industries Development and Renovation Organization.

Sabzevar DRI plant is part of the so-called "Seven Provincial Steel Projects" scheme undertaken by IMIDRO.