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Abstract of the Article

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Outcome of Privatization at Gol-e-Gohar Mine

Authors:
[ N. Taghizadeh ] - Managing Director, Gol-e-Gohar Iron Ore Company
[ H. R. Moeinaddini ] - Managing Director, Kusha Maadan Consulting Eng

Abstract:

Having more than 1.1 billion tones of Iron ore deposits at the Gol-E-Gohar area has made Gol-E-Gohar Iron Ore Company as the largest owner of Iron ore in the country. Area 1 of this complex has been equipped and run to produce 2.6 Mt of concentrate in 1993 with cooperation of Sepah Bank of the I.R. of Iran. Implementing the expansion project increased the production to 3.5 million tones in 2003. The privatization program has been started in Gol-e-Gohar since 1994. For the first step mine planning and production as well as ore handling and plant production was contracted out. In this procedure the trained personnel of Gol-e-Gohar were transferred to the private companies. In the next stages, facilities, maintenance, communication, transportation, as well as general services were contracted out to the private companies which mostly were founded by former Gol-e-Gohar personnel. This made the opportunity for Gol-E-Gohar to pay more attention to the expansion projects and strategic planning. Some of these projects are Hematite Recovery Plant, Pelletizing plant and Area 3 mine. In the ownership also Gol-E-Gohar has moved toward privatization as at this time only 20% of the shares belong to the government. Productivity factors show a positive trend in the profit and production. Gol-E-Gohar direct personnel have been decreased from 1034 in 1993 to 449 in 2003. Concentrate production per man has been increased from 4244 t in 2000 to 5523 t in 2004 and company profit has increased to 180 billion Rials in 2003. To keep this trend and improve it there are some comments as follows: improving supervisory systems to control contractor activities and maintaining the equipment and facilities, developing the engineering personnel and creating systems for evaluating the contractors.

Keywords:

Privatization, Productivity, Supervising systems, Market economy, Strategic planning, Expansion projects.