India Eyeing Iran Iron Ore Import

India's KIOCL is expecting the first shipment by Iran's Gol Gohar Mining Company next month.

"We are in the final stages of talks with Gol Gohar Mining Company of Iran for a tie up to import about 1 MT of iron ore. It is expected to be formalized in a month, post which the first shipment can take another week to reach Mangalore port," KIOCL Chairman and Managing Director Malay Chatterjee told PTI.

"Iron ore from Iran can arrive in India in four days via port of Bandar Abbas and land at Mangalore," he added.

Chatterjee further said his company is also seeking to "capitalize" on the 8-9 million metric ton shortfall which Iran has to cover through imports.

KIOCL has a pellet plant of 3.5 MT per annum capacity and a big iron plant of 2.6 lakh tones per annum capacity.

Soon after Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) reached a conclusion on the Islamic Republic's nuclear program, an Indian delegation visited Tehran and discussed ways to expedite crude oil payments of $6.5 billion to the Islamic Republic.

The delegation also held talks with the Iranian authorities on the issue of Indian multinational oil and gas company ONGC Videsh (OVL) getting access to develop Iran's prolific Farzad-B field.

Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14 reached a conclusion on a lasting nuclear agreement that would terminate all sanctions imposed on Tehran over its nuclear energy program after coming into force.

The promising prospect of trade with Iran has prompted major European countries to explore the market potential in the populous Middle East nation.

Earlier in July, a high-ranking German delegation led by Vice-Chancellor Sigmar Gabriel visited Iran as the first foreign delegation in Tehran after the nuclear conclusion.

Spain has also plans to send its ministers of trade, energy and tourism, along with a 40-strong trade delegation, to Iran in early September.