The strategic corridor passing through the provinces of Yazd and Kerman forms the basis of Iran's steel industry. This industrial framework relies on vast reserves, including the Gol-Gohar mining center in Kerman, with a volume of 1.2 billion tons. The development of activities in this mineral belt is determined by two competing logistical approaches: integrated clusters located nearby, and distributed value chains across the country.
Central Mining Belt and Key Raw Material Producers
An analysis of Iran's mining geography shows that the central corridor serves as a critical base for domestic raw materials for steel production. Yazd province (the Bafq area, where Chadormalu, Choghart, Chah-Gaz, and Seh-Chahoon are located) and Kerman province (where Gol-Gohar is in Sirjan and Jalalabad is in Zarand) jointly supply the vast majority of raw materials for the national steel industry.
Chadormalu, possessing approximately 320 million tons of recoverable reserves and an estimated operational life of about ten years at current extraction rates, acts as the primary domestic supplier of iron ore concentrate. In contrast, the Gol-Gohar center holds estimated 1.2 billion tons across six anomalies; Anomaly No. 3 contains 600 million tons of geological and 228 million tons of recoverable reserves, functioning as the main source for direct reduction pellets and concentrates.
Presence of Mahan Holding and Integration into the Downstream Chain
Within this corridor, Mahan Industries & Mines Development Holding (Tourism Financial Group) owns a controlling stake of 59.5% in Gol-Gohar Anomaly No. 5, while the state company IMIDRO owns the remaining 40.5%. Producing about 1.3 million tons annually through Mahan Sirjan Processing Co., this holding directs its products into the integrated downstream network: supplying the Baft Steel (Ehya Steel) sponge iron plant in Kerman and providing raw materials to the Bonab Steel complex in East Azerbaijan for finished steel production.
Logistics Models and Supply Chain Sensitivity
While Chadormalu and Gol-Gohar utilize the 'Integrated Cluster Model,' placing concentrators, pelletizing plants, and steel mills near the mining sites to minimize transportation costs and freight tariffs, Mahan Holding employs a 'Distributed Value Chain.' This operational structure links mining in Kerman with production facilities in Bonab, located over 1500 km from the mining site, creating a high dependence on long-distance interprovincial rail networks.
Since Iran's iron ore resources are concentrated in a narrow central corridor, regional differences in mining capacity, water availability, or railway transport tariffs directly affect the final cost of construction steel nationwide.