According to the resolution of the Economic Council, No. 65592/39 dated April 15, 2004, the Organization for the Development and Renovation of Mining and Mining Industries of Iran was given a mandate to prepare a comprehensive plan for the production of steel in the fourth development plan and, in accordance with paragraph 6 of Article 3 of the Law on Plans and Budget To invest in production of 4.6 million tons of steel per year in the form of provincial projects.
Based on feasibility studies in Khorasan Razavi province by consultants in 2006, the Sabzevar steel project was located in a region called Jovein and in a locality with a total area of 233 hectares located at 50 km of Sabzevar-Esfarayen road, and in 2007, the direct reduction and material handling plants were constructed (800,000 tons per year). The EPC construction contractor was a consortium consisting of Mining and Metallurgy Technology Co. (MMTE) and Energy Gostar Nasir Co. (NICC). On November 11, 2011, eighty-five percent of the shares of the project were transferred to Opal Kani Pars Mineral Processing Company and the SPSCO owned 85% of the shares owned by Opal Kani Pars and 15% of the Mining Development and Renovation Organization Iran’s mineral industry. SPSCO was established in the spring of 2015. Developing plants such as the second direct reduction module and two steelmaking plants, in addition to increasing production capacity and creating more value added, the region’s economic growth and development will create more employment and local production of wrought steel.
Launching the first plant of direct reduction, 350 people are employed directly in production, support and transportation and indirectly for more than 2000 people.