Iran's largest steel producer, Mobarakeh Steel Co or MSC, has bought a further 16.1% stake in Mines and Metals Development Investment Co or MMDIC from a semi-governmental retirement fund, local media reported Friday.
MMDIC is Iran's largest mining investment company and a major shareholder in a number of domestic miners and steel producers, including the country's largest miners Golgohar Mining and Industrial Co., Chadormalu Co., and sponge iron and steel billet producer Arfa Iron and Steel Co.
The acquisition takes MSC's stake in MMDIC to 35.4% and makes it the investment company's largest shareholder.
A stock market specialist told S&P Global Platts the deal was notable because it increases MSC's potential influence on price determination for long term contracts for iron ore and pellet, as well as on export and other policies.
Golgohar and Chadormalu plan to commence exporting some of their iron ore pellet output this year, but are waiting to receive a government exemption from a 15% export duty on iron ore pellet.
Golgohar started its second 5 million mt/year pellet plant last November 2016 and now has a nameplate capacity of 10 million mt/year.
Iran's total pellet making capacity is 29.5 million mt/year, which is expected to rise to 35 million mt/year within the current fiscal year ending March 20, 2018, according to Iranian state mines and metal holding company Imidro.
