While steel development and mine renovations are completely related to each other, sometimes we can see conflicts between their benefits. In this situation, the demands of companies like Esfahan Steel Co. (ESCO) are ignored. Sustainable supply of ESCO could raise the production capacity by 40 percent.

The company faces the lack of iron ore while 10 times of its demand is being exported.

Also, private companies don’t cooperate with governmental companies and this makes more trouble for them.

Javad Rafiei, purchase manager at ESCO: “We hold regular meetings in our company for planning, prioritize. Generally, in purchasing sector the payments have been prioritized. We pay according to the priorities. Maybe there are payment interruptions but there will be no non-paid financial requirments.”

He also mentioned the lack of raw material for production in ESCO and said: “Supply chain failure in mining industry and raise of raw material selling, specially iron ore is the cause of steel industry’s shortage of supply.”

“There is no need to buy excess and bear the cost of warehousing. We have good export market and clients,” he added.