an overview of the iranian base metals market...

An overview of the Iranian base metals marketOpportunities for investment & development

Mohammad Aghajanlou, IMIDRO’s Mining Industries Manager

6 September 2016Tehran - Iran

07/09/2016IMIDRO: Your gateway to Iran's mines and mining industries

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Natural Resource

Oil & Gas (75%-GDP)

Metallic Minerals

Iron & Steel

Precious Metals

Base MetalsNon-Metallic Minerals


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World Mines & Mining Industries Chain Value : 2000 B$

INDUSTRY VALUE %

Steel Chain 49Thermal Coal 27

Gold 7Copper 7

Aluminum 5Potash & Phosphate 2

Silver 1Platinum & Palladium 1

Diamond 1Zinc <1

Nickel <1


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Iran’s Mines & Mining Industries Export-Import (7-4.5B$)

Export PercentageSteel 38Cement 10.4Iron Ore 7.4Copper 4.1Aluminum 3.2Zinc 3.1Lead 2.2Chrome 0.7Ferroalloys 0.6Molybdenium 0.4Non-Metallic Minerals 26.7Base Metals Share 13

Import PercentageSteel 68.7Aluminum 7.8Ferroalloys 2.96Iron Ore 2.7Titanium 1.92Coal & Coke 1.42Copper 0.8Nickel 0.74Zinc 0.5Cement 0.21Lead 0.18Non-Metallic Minerals 11Base Metals Share 10


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Iran’s Mines & Mining Industries Export-Import Countries

Export, Country % Main Base Metals

China 22 Cu, Pb, Zn

Iraq 12 Al

UAE 11 Cu, Pb, Zn

Turkey 8 Cu, Al, Zn

Italy 7 Al, Pb

Import, Country % Main Base Metals

China 38 Al

UAE 19 Al, Pb, Coal

India 10 Al, Cu

S. Korea 9 Ni

Turkey 6 Al, Cu, Ni

IMIDRO: Your gateway to Iran's mines and mining industries

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As one of the Major Shareholders of Big Mining Companies in Iran, IMIDRO is a State-Owned holding company, with activities from Exploration to Exploitation, Processing and Mining Industries.

We provide supportive fund for Infrastructure, R&D, Training and etc. Investing our resources and revenues in mining projects in partnership with Private Sectors.

IMIDRO has International Subsidiaries in Germany, Italy, Russia, China, Kazakhstan, UAE and can handle the projects and contracts based on International regulations and Laws.

Iran Mines and Mining Industries Development and Renovation Org.07/09/2016

Exploration Exploitation Processing Plants

Mining Industries

Industrial Products


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IMID

RO

History

69 Project Constructed (Mining, Steel, Zinc, Copper, Aluminum, Gold , Infrastructure…)

17 B$ Investment

70.000 Jobs created

Current 29 project under development, 9 B$ Investment

FutureBy 2025, Iran mining sector required another 50B$ Investment(Exploration, Project Development, Equipment's and Mining Renovation and related

Infrastructures...)

IMIDRO’s Current and Future Projects


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Why Iran is a biggest opportunity• 80 Million people- 41% Young and well graduated With 1% of world

population• Energy Resources: Ranked #1 in Natural Gas Reserve(18.3% world) and #4 in

Oil reserve (9.3% world) – life of those reserves more than 100 years• It is ranked in the top 15 major mineral rich countries in the world (37

Btones mining resources with 7% of world resources)• Iran’s mineral potential is estimated to be around $700billion Value, 68

types of minerals,• Iran has the world’s largest zinc deposits; 9th largest copper and iron

deposits and 11th largest lead deposits.Iran has the Middle East’s largestgold reserves.

• Mining Industries currently only contributes 0.6% to GDP, this shows thehuge potential for growth.


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• Iran’s world ranking has increased as part of IMIDRO’s activities in the past15 years.

• International ranking of Iran:▫ Steel: 14▫ Cement: 4▫ Copper: 20▫ Aluminum: 19▫ Zinc: 14▫ Lead: 16▫ Iron Ore: 11

Mineral Resources of Iran

Copper CathodeAluminumSteel Regional Ranking % of

WorldProductionCountry% of WorldProductionCountry% of

WorldProductionCountry

4.5%850Russia7.3%3,601Russia5.3%87 291India1

2.3%430Kazakhstan (Concentrate)

4.7%2,341UAE4.3%71 461Russia2

1.0%190IRAN4.3%2,100India2.1%34 035Turkey30.5%90Turkey1.9%930Bahrain1.0%16 331IRAN4

0.3%58Saudi Arabia(Concentrate)

1.5%740Saudi Arabia0.4%6 485Egypt5

0.2%39India (Concentrate)1.2%610Qatar0.4%6 291Saudi Arabia60.8%375Oman0.2%3 019Qatar70.7%350IRAN0.1%2 423Pakistan80.1%65Turkey0.1%2 390UAE9

0.0%723Uzbekistan10

Iran Position in Mena-CIS-West Asia (000 Tons)


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Less than 3 US$ Cent per m3 of nat gas and 1.8 US$ Cent per Kwh of powerMinimal Energy Costs

230 US$ */month/well-experienced companies and contractors (* min monthly income)

Skilled Workers with Low Salary

25% of Steel demand Middle EastLargest Market in Middle

East

Suitable road and rail networksTransport

One of the largest networks of nat gas pipelines in the world – 22000 kmSuitable Infrastructure

Special Economic ZonesTax Free

One of the securest states in the Middle EastSecurity

Steel: 300 US$ - Aluminum: 1500 US$ - Cement: 19 US$Minimal Production Costs

per Ton

Competitiveness of Industries in Iran07/09/2016


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• IMIDRO provides infrastructure for its SpecialEconomic Zone including power, water and etc.

• The zones are located next to the Persian Gulf andhave jetty available and/or under planned/constructions.

• A suitable rate for energy price is negotiable basedon a long term agreement.

IMIDRO Special Economic Zone: A Tax Free Site for Mining Investments

Bandar AbbasLamerd

Parsian

Chabahar (Free Zone)

IMIDRO JETTY PGSEZ

Almahdi Aluminum – 250 KTon

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Main investment decision criteria factors

• Security of tenure• Ability to repatriate profits• Measure of profitability• Stability of mining /industrial terms• Ability to predetermine tax liability• Ability to predetermine environmental obligations• Realistic foreign exchange regulations• Consistency and constancy of mineral policies• Stability of fiscal regime• Mineral ownership• Ability to raise external financing• Import – Export policies• Right to transfer ownerships


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Incentives for Foreign and Private Sector investment

• IMIDRO is promoting foreign and private investment in the projects in Mining and Metal projects and has the followingincentives for investors. To support the projects, IMIDRO is willing to participate as a partner for foreign investor, if required


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Incentives Mining Exploration

Mining and Industryprojects

Long Term Contract for Low Energy Prices (Nat Gas)

Supporting local partners with Loan from “Iran Oil Fund”

Required permits from Authority Shortly

Allocate Land in Special Economic Zone (Tax Free…)

Exploration Risk Insurance by Government

To Provide infrastructures required in SEZ

IMIDRO participation as shareholder in J.V Company

FIPPA Coverage (Foreign Investment Promotion and Protection Act)


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Exploration Projects (240,000 Km2) and Opportunities for PartnershipProvince Area

Khorasan-Sangan 11500Sistan –Baluchistan-Border 15000

Sistan –Baluchistan-Caravan 14300South Khorasan-Border line 6116

Fars-Bahram Goor 5000Ardebil-Ghezelozan-

Khalkhal 1351

Kerman-Hormozgan-Sirjan 30000Ardebil-Sabalan 1696

Ardebil-Baghrodagh 874Yazd-Bafgh-Robat 10558

West Azarbaijan-Khoi-Maako 1218

West AzarbaijanTakab-Piranshahr 5135

Kohkelooyeh-Boyerahmad 1006Other Area 136000

Total Area (Km2) 240.000

E.AzarbayjanArdebilZanjan

Zanjan-TaromW.Azarbayjan

Kurdistan

ILAM

Kurdistan-Ghorve

Ghahar Mahal

Kohkelooyeh

Fars

Central iran

Zanjan-Soltanieh

Mazandaran

Central Iran-North

Koocheck Ali

Golestan

North Eshghabad

Biseh

Boarder-S Khorasan

Heidar Abad

Boarder-Sistan o Baluchistan

Sistan-Baluchistan

Gorgan

Abadeh


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Current and Future Projects (until 2025)- 50 B$ Investment

Mines

Iron Ore, Coal, Titanium, Potash , … with investment

about 7 B$

Steel

Increasing capacity to 50 m tones per year by investing 30 B$ in green & brown field projects

Aluminum

Increasing capacity to 1.5 m tones per year by investing

10 B$ in the Bauxite, Alumina & Aluminum Projects


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CopperIncreasing capacity to 400K Ton/Year in NICICO + related

mine development and concentrate facility (3 B$)

ZincMehdi Abad Concentrate & Ingot

800 K Ton/Year , the project is planned to be executed by the private sector

(1 Billion US$)

Gold

Phase II of Zar Shuran3 Ton/Year

Projects (until 2025) - 30% belongs to base metals

IMIDRO act like Government Partner for foreign investors and Creditors in the projects.


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For more information, please contact IMIDRO at the following address orvisit our website:

07/09/2016

www.Imidro.gov.ir/ Invest you are warmly welcome to visit our Head office at:

No.39, Sepahbod Qarani Ave. Tehran, Iran

Phone: +98-21-888 29 181Fax: +98-21-888 42854Email: [email protected] THANK YOU!

mailto:[email protected]

an overview of the iranian base metals market...

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