Finnish mineral processing company Outotec has been awarded a major contract for a new iron ore pelletizing plant in Bafgh, Iran, from Bafgh Mineral Complex Iron and Steel Industry Company (B-MISCO).

"Outotec's pelletizing technology was selected due to its ability to process a wide range of iron ores, and our strong track record globally and in Iran. Our technologies are widely used in the Iranian iron ore and copper operations, as Outotec has delivered sustainable technologies to Iran since 1970s. We are also currently executing several other projects in Iran", says Adel Hattab, head of Outotec's EMEA region.

The value of the contract was not disclosed but in a press release, Outotec said typically, such equipment is in the order of 80 to 100 million euros. The company noted that it has booked less than 10 million euros in orders for the second quarter.

The contract covers the the technology license, basic engineering of the pelletizing plant, detailed engineering and supply of proprietary and key equipment and automation, as well as advisory site services for installation, commissioning and start-up. The new 5 million tonnes per annum pellet plant is expected to become operational in 2018.

Iran was the world's 10th largest iron ore producer in 2012, according to the United States Geological Survey (USGS), when it extracted 28 million tons of the steelmaking ingredient.