ISLAMABAD, Sept 2: Iran has assured to fulfil Pakistan's steel requirements for next five years specially by providing "uninterrupted supply" of iron ore, said the Chairman Pakistan Steel Mills (PSM), Lt Gen (retd) Abdul Qayyum.

"Iran will shortly send a team to conduct geological survey for the exploration of iron ore and other minerals at various places", he said. Talking to Dawn on his return from Iran, he said that Tehran has further agreed to extensively train the non- technical staff of steel mills.

Since Iran has decided to fulfil steel requirements, the PSM would no longer be importing raw materials, including iron ore from Australia, India and other countries, he said. The chairman PSM said that he held discussion with the Iran's Deputy Minister for Mining and Industries, Mustafa Moazzan to forge increased cooperation between the two countries.

The raw materials used in the steel industry, Lt Gen Qayyum said, would be imported through road and rail routes. The rail route needs to be improved specially on Iran side so that Pakistan could continue getting uninterrupted supplies.

He said Iran's steel industry was bigger than Pakistan's because of the production of 15 million tons of steel annually compared to the PSM's 1.1 million tons.

Like the M/s NCC of China, Iran has also offered to provide training to Pakistani manpower. He regretted that over 60 per cent manpower of the steel mills was non-technical and needs to be trained with a view to enhance the performance of the organization.

Responding to a question, he said there existed huge potential for raw materials, specially iron ore in Balochistan, Mianwali, Malakand, Chinnot and Sheikhupura. The real problem was the exploration which could now be done with the active support of Iran, he added.

Initially, Lt Gen (retd) Qayyum said that Iran would be encouraged to conduct geological survey at various places to find out different kinds of raw materials. To another question, he said that expansion of the PSM from 1.1 million tons to 3 million tons was very much on the cards and a decision will be taken after the report of its UK-based consultant M/s Corus.

The Mills' major preoccupation was the Balancing Modernization and Replacement (BMR), which will be commenced through the PSMs own resources, he said. Asked about the financial health, he claimed that his organization has achieved one of the most dramatic turnaround in the corporate history of Pakistan. The steel plant, he said, which was on the brink of oblivion a few years ago is now firmly on the net profit.

"The Pakistan Steel has surpassed all previous records of sales and profit making through innovative moves", he said adding that the record turnover of Rs45 billion was achieved during 2003-04 as against Rs41.5 billion in 2002-03.