Fundamental analysis of the iron ore industry Nikan Profile Industrial Group

History of iron ore

The first use of iron, 4000 BC by the Sumerians and Egyptians from meteoric iron and the manufacture of bayonets and ornaments;
The use of molten iron in Mesopotamia, Asia Minor and Egypt in 3000 to 2000 BC;
From 1600 to 1200 BC the use of iron as a by-product of copper in the Middle East;
From the 10th to the 12th centuries in the Middle East a rapid shift in the conversion of bronze tools and weapons to iron took place, which was due to the disruption of the tin supply and the discovery of the carburization process and the possibility of adding carbon to iron;
In the 18th century, the use of coal instead of charcoal in England as a substitute heat source by Abraham Darby and providing the energy necessary for the Industrial Revolution;

The properties of iron (low density, hardness, strength, and durability) made it more widely used than the two metals gold and copper;
The smelting of iron led to the fourth step in civilization;

Since the 20th century, the consumption of steel and iron has increased with the advancement of science and living standards (use in the mid-century was 5,000 times that of the 16th century) and a steady growth of 3% in iron processing, or a doubling in 23 years; Environmental pollution, high wages and costs, social insurance, taxes, transportation, and countries’ access to knowledge and technology have caused the burden of iron smelting to be placed on the shoulders of third world countries.

Iron was used in Iran around 800 BC;
From the excavations of the Silk Cemetery, dating back to the first millennium BC, it was revealed that weapons for generals and rulers were made of iron and for ordinary people of bronze (a combination of copper and tin);
The recognition of the properties of iron by the Achaemenids and the use of bitumen to prevent rust and extraction from the deposits around Neyriz;
Iran has a very ancient historical record in the field of production and use of iron. However, in terms of industrial production of this product, it has no more than 40 years of experience;
It is currently the largest producer of iron ore and crude steel (about 72%) in Asia and the Pacific;
In 1351, the first steel factory was built in Isfahan.

Iron ore

The name Iron is derived from the Anglo-Saxon words Iren & Iron, meaning sacred metal. The symbol Fe
is an abbreviation of the Latin word Ferrum for iron;
Iron is extracted from iron ore and is rarely found in the free state;
It is the fourth most abundant element and the first heavy metal;
This metal is present in almost all ores;
Iron is mainly extracted from magnetite and hematite;
Approximately 75% of the world’s iron production and 86% of its reserves in the world are from sedimentary ores.

Iron ore mines

Probable reserve: A probable reserve is a portion of an identified mineral resource, and in some cases a measured mineral resource, that is economically extractable, taking into account the costs of opening, equipping, and preparing.

Proven Reserve: A proven reserve is the portion of a measured mineral resource that is economically exploitable, taking into account all extraction costs.

Deposit: A deposit or mineral deposit is formed from two words “Kan” meaning mine and the suffix of the place “Sar” and is referred to as a place where one or more ores or minerals that are worth extracting exist. Therefore, it includes extractable masses, whether metallic or non-metallic. The ability to extract a deposit depends on its inherent characteristics on the one hand and on the other hand, on technological advances and the value of minerals.

Types of iron ore deposits

1.Magnetite (Fe3O4)

Magnetite is grayish black and dull and occurs as a highly lustrous to dull metal. This mineral contains 31% (FeO) and 69% (3O2Fe), with an iron content of up to 72%. This mineral crystallizes in the cubic system. This mineral is brittle and has a density of 5.18. Magnets attract this mineral, and sometimes the mineral itself is magnetic, but it loses its magnetic properties at a temperature of 580 degrees Celsius. Magnetite is converted to hematite in a reducing flame and loses its magnetic properties. Magnetite is found in igneous and metamorphic rocks (crystalline schists) and sedimentary rocks. The crystals of this mineral are octahedral, massive, dense, and have fine to coarse grains.

2.Hematite (Fe2O3)

The iron content in this mineral reaches 70% and it has a small amount of water. The color of this mineral varies from steel gray to black, and thin pieces of it are saturated blood red, and some types of it are in the form of masses and dull brownish red to bright red. This mineral is brittle and has a density of 5.26. The crystallization system in this mineral is triclinic. In a reducing flame at high temperature, it acquires magnetic properties and turns into magnetite. Hematite is found in oxide environments in various beds and in igneous and metamorphic rocks (crystalline schists), in thermal beds, volcanic rocks and sedimentary rocks. On Hormuz Island, the red soil (red soil) has beautiful hematite crystals.

More than 300 iron minerals are found in nature, the most important of which are:

The majority of iron ore deposits in Iran are magnetite (90%), with small reserves of hematite.
Iran’s iron ore reserves are concentrated in three major iron-bearing areas: Sangan, Central Iran (Bafgh, Saghand, Zarand), and Golgohar.

Amount of iron ore reserves in the world

The raw material for steel production is iron ore, and Iran ranks eighth among countries with iron ore reserves (US Geological Survey report, 2023).