We Intend to Set a New RECORD IMIDRO Exclusive

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Iran International, the Forum for Partners in Iran’s Marketplace Double Issue

Iran’s Mining Projects Open to Foreign Investors

2 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 3 Competition between Mine and Oil IMIDRO Exclusive

ith regard to the started the above-mentioned tendency of the studies so that after identifi- international com- cation and discovery of de- munityW towards advanced posits and their processing Important industries (Hi Tec) in such and production we would fields as electronic and - tele be able to meet domestic communication industries, demands with regard to the automotive, catalysts, perma- development of modern in- Development nent magnets, metallurgical dustries. In this regard, the alloys, phosphorescence and plan for “processing and fea- pigments, glass and ceram- sibility study of rare earth el- ics, aerospace, etc., produc- ements” has been defined and Factor tion and consumption of rare started implementation. earth elements and strategic Iron and phosphate ore metals such as lanthanide, and tailings are among re- scandium and yttrium, as the sources possessing rare earth raw materials for the manu- elements and with their si- facture of high technology multaneous extraction more products have taken a mo- value added can be created. mentum. In all iron ore mining com- IMIDRO in an effort panies affiliated to IMIDRO not to lag behind the trend of sampling of rare elements international developments was conducted on tailings has formulated a plan for and studies on the amount exploration of rare earth ele- of deposits of the elements ments (REE) and has started are being conducted. In case identification of potential de- results of these studies have posits and localization of the technical and economic justi- technology for production of fications the plan for process- these elements in the country ing rare earth elements at lab- since July 2014. oratory and semi-industrial IMIDRO, with regard scales will become operation- to its mission and vision, has al. Localization and transfer of knowledge and technology Iron and related to the processing of rare earth elements and stra- phosphate ore tegic metals are among im- and tailings are portant programs of IMIDRO and after finalization of -pri among resources mary studies the target will possessing rare be followed. IMIDRO calls for coop- earth elements eration of all investors and and with their owners of technology in the simultaneous field of development of rare earth elements and strategic extraction more metals and will provide prop- value added can er conditions for activities in this regard. be created. Rare Earth and S trategic Elements

6 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 7 Big Decisions Need Big Friends

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The Forum for Partners in Iran’s Marketplace Address: No. 92, Mirzaye Shirazi St., Tehran, Iran. Postal Code: 1596735818 Tel: (+98 21) 88800900-4 Fax: (+98 21) 88893013 [email protected] www.mobinco.com

obin Road & earthmoving and exploration standard procedure for Stripping and ore Mining Co., is field, Mobin has been able to equipment maintenance. This excavation of Mahdi Abad Mthe biggest subset win the national tenders with is in a condition that Iran has Lead-Zinc deposite of Arsh holding. Having the the highest technical scores been suffering from economic Stripping and ore overall excavation rate of and the lowest proposed costs. sanctions and there is no excavation of Chah-Gaz Iron more than 750M tons, Mobin Furthermore, in 2008 Mobin efficient representative of deposite is one of the pioneers in Iran could win the international manufacturers in the country Construction of mining operations since 1989. tender of Arabian Canal in order to get the needed parts. sediment retention dam in Also, since 2006 Mobin and got involved as one of To this end, Mobin’s experts Sarcheshmeh copper mine involved in dam construction the major contractors of in equipment maintenance Cooperation in mobili- projects and hit another the project hitting another department designed and zation, stripping, ore excava- achievement to its resume. achievement to its resume. constructed more than 2000 tion and selling of 24 M ton of Team work and the be- Relying on its experts and parts inside the company Iron ore during 14 years, from lief that we can operate in big using big scaled equipment, leading to high self esteem of Sirjan-Golgoar Mine. scaled projects is the policy the company has been able the staff and labors. of directing board which Mo- to finish the assigned projects Currently Mobin Co. is bin’s major decisions have faster and cheaper than Some of Mobin’s current known as the most reliable been made on it. Today, Mo- scheduled. projects: company in construction bin’s strategic goal is to reach Today, the company Stripping and ore and mining field, based on the annual excavation target of owns more than 400 heavy excavation of Meydouk its honorable reputation and 120M tons of waste and ore. equipment in earthmoving copper mine optimistic approach and we Being the top first field which some are unique Stripping and ore exca- aims to help the country in national contractor in in Iran and conducts a high vation of Sungun copper mine national development projects.

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The Forum for Partners in Iran’s Marketplace BIM Wins Golden Plate for Top Banking Management

he plate was awarded to BIM during a ceremony held at the IRIB Conference TCenter under the title of the “conference of the most reliable Iranian companies and organizations” (MITEC 2015). Bank of Industry and Mine has received the award based on such criteria as attracting confidence of costumers through offering specialized services, providing quick services, presenting new banking services projects and methods and offering higher amounts of facilities and financial and credit support. Tune in to a Global Player

Tune in to Iran’s Marketplace in this issue

The Forum for Partners in Iran’s Marketplace IMIDRO Exclusive Seyed Hussein Sanaei Chairman & Editor-in-Chief Khosrow Soltani Rare Earth and Strategic Elements ...... 6 Editor Saeed Razmkhah, Sajjad Khoshroo We Intend to Set a New RECORD ...... 18 Senior Consulting Editors Leilasadat Sanaei Competition between Mine and Oil ...... 22 Art Director Photos Iran’s Mining Sector Statistics ...... 26 Mohammadreza Moradabadi Elc. Reproduction Copper Industry in World & in Iran ...... 32 Johari Printing and Binding Leader Visits Copper Plant in Sarcheshmeh ...... 36 Forough Danesh For editorial, advertising, subscription and Copper, a Metal for Development ...... 38 information services please contact: E-mail: [email protected] Rouhani's Remarks on Sarcheshmeh Copper ...... 42 Tel: (+98 21) 22 666 450 Fax: (+98 21) 22 666 451 P.O.Box: 19615-1111 Tehran-Iran Shahre Babak Copper Company ...... 44 www.iraninternationalmagazine.com www.iraninternationalmagazine.ir Specialized Exhibitions Increase Private Sector Capability ...... 46 www.iraninternational.ir ISSN: 1029-8061 Health, Safety and Environment ...... 48 Iran International is a trade and economic quarterly distributed globally. Iran Mineral Processing Research Center (IMPRC) ...... 52

Iran International: “The Forum for partners in Iran’s Marketplace.” This is Mining Differences in Iran and the World ...... 54 the motto adopted by the full-color quarterly Iran International since its emergence in Steel and the Role It Plays Globally ...... 60 MIDHCO ...... 98 June 1998. Iran International focuses on the theme of partnership in various sectors of economy, trade, industry and culture. Khouzestan Oxin Steel Co...... 64 Investment in Exploration ...... 100

Readership & Circulation: Iran Mobarakeh Steel Co., The Gem of Iranian Industry ...... 66 Persian Gulf Mining and Metal Industries Special Economic Zone ...... 102 International is regularly distributed among its targeted audience who include economic, industrial, political and cultural Yazd Alloy Steel Co...... 69 Ehdas Sanat Successful in Export of Technical and Engineering Services ...... 106 circles in Iran and around the world. Iranian decision-makers, government officials, Khuzestan Steel Company Pioneer in Development of Iran Steel Industry .. 70 IMIDRO, Strategies and Policies ...... 111 industrial executives, top contractors, major commercial and financial organizations, trade partners of Iran, potential investors, Esfahan Steel Co...... 72 Aluminum, Energy Piggy Bank of Southern Persian Gulf States ...... 112 joint chambers of commerce, global banks, international companies based in National Iranian Steel Company at a Glance ...... 74 Iran Alumina Co...... 116 Iran, industrial plants within the country, embassies, cultural centers, tourist and travel agencies and international bodies ChadorMalu Mining and Industrial Company ...... 76 The Most Advanced Aluminum Production Complex in Iran ...... 120 form the main readership of the magazine. All articles and advertisements of the Sirjan Iron Ore Complex ...... 78 Lead and Zinc Industries in World and Iran ...... 122 latest issue are always accessible at the magazine’s three web sites. Iran Minerals Production and Supply Company ...... 80 Anguran Lead and Zinc Complex ...... 124 Publications: In addition to its four regular issues coming out in June, September, Sangan Iron Ore Complex ...... 82 Mehdiabad Lead, Zinc and Barite Mining Complex ...... 125 December and March, the magazine publishes special issues on occasion. Iran’s Mining Projects Open to Foreign Investors ...... 84 Zarshouran Gold Complex ...... 126 Clients: In each edition, Iran International has had the pleasure of featuring the Ghadir Investment Co...... 90 Mooteh Gold Complex ...... 127 promotional items of global players and national companies that have a key role in development of industry and economy. Our Advantages of Investment in Mining Sector ...... 92 IMIDRO Plans for Development ...... 128 main clientele come from diverse fields of Oil & Gas, Chemicals & Petrochemicals, Iron Ore in the world & Iran ...... 94 Industries, Mines & Metals, Automotives, Aviation & Tourism, Banking & Finance.

16 IRAN INTERNATIONAL, June 2015 IMIDRO Exclusive We Intend to Set a New RECORD Dr. Mehdi Karbasian, IMIDRO Chief what is clear is that the world population is growing and so ining industries are is immigration from rural ar- one of the pillars of eas to cities. Countries like Mthe world economy India and Brazil will soon fill formation. Mining is so im- in the gap created due to the portant that developed coun- consumption in China. tries lacking it intend to make Discovery is consid- investments in countries that ered the first link in the chain pose the means of this indus- of mining industries. Chile, try and instead, do the pro- Australia, Russia, Mexico, cessing and creation of value Canada and the United States added in their own countries. are the top countries in terms Also, some countries, with the of exploration expenses. Basi- formation of multinational gi- cally, exploration expenses in- ant companies, irrespective of volve risk and therefore gov- geographical borders would ernments tend to support them go to any place to dig out the directly through investment or hidden treasures of the earth. indirectly through insurance Another basic factor of and subsidy systems. In many the world economy is oil and mining countries, exploration energy carriers which can be expenses are paid as tax; a also considered as minerals. policy that would encourage These two elements affect the more companies to enter this economy in different forms. field. As we know, a major part of In addition, more atten- mining industries are energy- tion is to be paid to issues like consuming industries. Energy the limitation of mineral sub- plays a significant role in the stances in the world. We must field of aluminum, steel, cop- consider the fact that our min- per, lead, zinc, etc. Therefore, eral resources are non-renew- if the energy prices fall so will able and to let the future gen- the price of its products. erations have its rightful share On the other hand, fall- of them is only fair. Therefore, ing of oil price will decrease in order to protect the resourc- the revenues of developing es and the environment, we oil rich countries and accord- must do all in our power to re- ingly slow down consumption cycle substances such as steel, rate as well as their develop- copper, aluminum, etc. and we ment process. Reduction of should also consider minimiz- consumption rate especially ing the size of our consumer in large projects will result in products to a miniature level lowering of demand in mar- in order to reduce the amount kets such as basic metals. But, of resources used in them.

18 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 19 IMIDRO Exclusive

And as far as my be- a dynamic and experienced loved country Iran is con- private sector, supportive cerned; regulations and special eco- Today, Iran is on the nomic zones, existence of threshold of a great economic steel, aluminum and cathode evolution which is based on copper ingots which would innovation and not expecta- facilitate the production and tion and we are to do our part development of downstream in this movement. I live in a industries, large and grow- country in which nearly 90 ing domestic and regional types of mineral substances consumption markets such as have been identified. A coun- Afghanistan and Iraq, country with unprecedented oil, tries in the south of the Cas- gas and energy reserves and pian Sea and the south of the access to the world open seas Persian Gulf. These are all which due to a heterogeneous among the very advantages crustal and having experi- our country is blessed with enced different geological and lend proof to the fact that events in the process of its Iran is the best route for the formation, is rich with mineral substances and is blessed with Today, Iran is on some of the most important minerals and large and open the threshold of reserves in the world. a great economic Mining used to be common in ancient Iran; the proof evolution which of which we can see in the is based on ancient remains of this homeland. But today we intend to innovation and set a new record in our devel- not expectation opments and let Iran’s mining industries stand out in the and we are to do world. Iran has the potentials our part in this to compete in mining industries. We are able to welcome movement. large international investments in Iran in the field of development of mining indus- steel, copper, aluminum, gold, tries of the region. lead, zinc, barite, silica, silver, Also we can say that the etc. Our rules and regulations best route for transfer, pro- have easily made it possible cessing and export of mines in for investors to function in west of Afghanistan is through Iran and IMIDRO (Iranian Chabahar Port in Iran. Iran’s Mines & Mining Industries southern ports are the best cor- Development & Renovation ridor for the Caspian Sea litto- Organization) has established ral states. The safest zone for basic mining industrial zones the establishment, production and even has more projects un- and export to Iraq is west of derway. Iran aims to produce Iran. The most strategic point over 60 million tons of steel, for turning mineral substances 1.5 million tons of aluminum, and energy to the products of 8 tons of gold, 800 thousand the mining industries to be ex- tons of copper as well as other all investors in this very field 2015) has been up to 200 over 1.5 million meters of ex- over 100 major mining proj- them to join the private sector. outstanding. These include ported to Arab countries, espe- mineral products by the year and prepare the ground for the thousand square km and it has ploration with a cost of $730 ects with an income of over Considering all the achieve- nearly 90 mineral substances cially in the southern Persian 2025. Meanwhile, IMIDRO as acquaintance of the Iranian also welcomed all domestic million dollars and its recent $12 billion and created over ments of IMIDRO, this or- along with rich gas and ener- Gulf region, is south of Iran. an executive arm of the gov- private organizations with for- and foreign investors to be plans are expected to result in 100 thousand job opportuni- ganization is one of the most gy resources, proper access to Is there any other factor ernment and the only organi- eign investors. part of the development of an outstanding growth in min- ties. To fulfill its long-term successful department in min- regional and international wa- required for development and zation in the mines and min- The range of IMIDRO exploration activities in the ing exploration. purpose, IMIDRO has devel- eral industries in the region. ters, inexpensive experienced competitiveness? If there is ing industries development is exploration projects during country. During the past 10 In the first decade of its oped many mining corpora- Iran’s advantages re- academic workforce, having we are ready to fulfill that as ready to attract and welcome 1393 (March 2014 – March years, IMIDRO has also had foundation IMIDRO launched tions and made it possible for garding mining industries are large scales of open reserves, well!

20 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 21 IMIDRO Exclusive

ead of Iran’s Manage- Constitution, for the start of say to reach the first rank in noted that economic growth ment and Planning each development plan such science and technology in the is the outcome of investment HOrganization Mo- notification, will be conveyed region and become a devel- and productivity. In the mean- hammad Baqer Nobakht an- to the executive bodies by oped country as well) is highly time, he noted, an investment nounced that the draft of the the Expediency Council after important. growth rate of 12.2% had been outlines of the Sixth Devel- expert works and upon a col- Nobakht said that real- projected in the development opment Plan has been com- lective proposal and approval ization of economic growth plans which has not been re- municated by the Supreme of the Supreme Leader of the is a must to accomplish this alized. Lack of access to the Leader of the Islamic Revolu- Revolution,.” goal. In order to reach the expected growth, with regard tion to the Expediency Coun- Head of the Management required aim there has been to this factor, is understand- cil. He said for the third time and Planning Organization no satisfactory work record, able with a review of the pres- in the Sixth Plan the target further remarked that similar he said, adding that while in ent business atmosphere in the of 3% economic growth rate to the Fourth and Fifth De- the three development plans, country. for achieving productivity is Competition velopment Plans, in the Sixth namely 4th, 5th and 6th, this is- The official said: “On the standing out on the top of the Plan the policy of the ‘econ- sued has been underlined by other hand some countries on policies. omy of resistance’ will be put the Supreme Leader, however behalf of the world and with Speaking at the 3rd Con- on the agenda. This, he said, is it has not been put into action regard to the attraction of for- ference on Iran’s National between indicative of the fact that the by the executive organizations eign investment in Iran have Mines and Mining Industries issue of productivity to attain yet and thus such an important imposed limitations and this Productivity Award organized an appropriate growth rate for issue should be reviewed. issue justifies lack of foreign by IMIDRO, he noted: “Ac- the realization of the target of Nobakht, who is also investment in our country.” cording to Article 110 of the Mine and Oil Vision Plan 2025 (that is to the government spokesman, Nobakht noted: “It was sup-

22 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 23 IMIDRO Exclusive

posed during the past three development plans that a share of one third of the country’s economic growth would go to productivity. But, unfortunately we failed to achieve the target and even experienced a negative growth rate of 6.8% and 1.9% in the calendar years 1391 (2012) and 1392 (2013) respectively.” Nobakht reiterated that although today the Islamic Iran is among a few world countries that have been successful in launching satellites for the exchange of information, however in the field of productivity the country is experiencing a downward trend. The Head of the Man- agement and Planning Orga- He added: “In the year nization noted that on the ba- 1393, a budget of 120 billion sis of the budget for the year rials was allocated to educa- 1394 (2015-2016) and with tion and research in the field regard to the drop in oil rev- of mine and mining industries enues, more than 94,000 bil- and good efforts were made lion rials have been projected The mining sector in this regard with the help of for research which shows an enjoys the required major industries and coopera- increase of 34% over the pre- tion of the Ministry of Indus- vious year. capacity for try, Mine and Trade.” “Oil has always played development and to Karbasian noted that an unparalleled role in funding growth of steel export since the budget but now in the bud- attracting attention the beginning of the year 1393 get of the next year (2015), its towards this sector to date was due to increased position has been reduced and productivity in this sector, the mine sector and mining the required adding that while in the years industry could receive further investments 1391 and 1392 the amount of attention.” According to the steel exports was less than 200 policy of the ‘economy of re- should be made, thousand tons, this figures has sistance’ the mining sector en- the government increased to about 2.5 million joys the required capacity for tons since the beginning of the development and to attracting spokesman noted. current year (ended March 20, attention towards this sec- 2015) which shows that good tor the required investments steps have been taken in the should be made, the govern- in the economy particularly emphasized on the strong role the mine and mining indus- these projects have brought area are very limited, there- each 1% investment in the field of promotion of produc- ment spokesman noted. for coming out of recession of mines and mining industries existed in the country great evolution in the deprived fore in order to reach a suit- mining sector of the country tivity in this industry despite however these efforts have tries in the economic growth that had been abandoned or regions and created satisfac- able economic growth special has a value added of 3%. He the shortcomings of the past. 6% Share of Mining not been enough for compen- of any country, including Iran. were semi-finished projects. tory job opportunities for the attention should be paid to referred to two areas where At the end of the cer- Industry in Economic sating the meager economic He said 200 million tons of But today they become active inhabitants of the area. productivity in this sector. IMIDRO is active in order emony, five industrial and Growth Rate growth rate in the past years. proven iron ore reserves and as a result of the follow ups Pointing to the invest- Giving an example, he to reach a higher economic mining companies of Esfordi Karbasian added that 6% 200 million tons of proven and efforts at IMIDRO. In the ments made in the field of mine described the issue of low pro- growth in the field of mine Phosphate, Sangan Iron Ore, Also speaking at the con- of the gross national prod- coal reserves have been added 1393 (ended March 20, 2015), and mining industries in the ductivity in some sectors of and mining industries: first Chademalou, Khuzestan and ference, Managing Director of uct (GNP) is related to the to the mining reserves of the we even succeeded in putting deprived areas of the country the mining industries saying productivity and its promo- Mobarakeh Steel were intro- the Iranian Mines and Mining mine and mining industries country, adding that Iran is the two projects into operation.” as a responsibility of IMIDRO the world’s per capita production with the help of organiza- duced as top companies and Industries Development and of which 1% has been allo- 12th world country in the area He noted that projects and as one of the targets on the tion of steel is 650 kg but the tions such as Management and received plaques of honor for Renovation (IMIDRO) Me- cated to mines and 5% to min- of proven mining reserves. are underway in Sangan in the agenda of the organization, figure in Iran is below 300 kg. Planning and IMIDRO; and productivity from Head of the hdi Karbasian said although ing industries. Stressing that Karbasian noted: “In the field of production of concen- Karbasian further remarked He said the situation is even second focus on the issue of Management and Planning economic policies of the gov- the figure is over 16% in ad- early days of the 11th govern- trates and pellets with a capac- that given that Iran’s resources worse in the field of coal. training and boosting research Organization and Managing ernment show a positive trend vanced countries, Karbasian ment, 30 national projects in ity of 17.5 million tons and for making investment in this He further remarked that activities. Director of IMIDRO.

24 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 25 IMIDRO Exclusive

producer of crude oil and con- and processing industry: more of the world’s output; and, of densate (natural gas liquids), than 70 metals and mineral course, Iran is the world’s old- accounting for about 5% of commodities are ored, refined est, finest and largest producer global output and with 2% of or manufactured; more than Iran is also of turquoise stone. Astound- Iran’s Mining the world’s crude oil refining 2% of the world’s output of among the 15 top ing indeed. capacity – along with 9% of barite, feldspar, nitrogen, and proven global oil reserves; it sulfur; and more than 1% of major mineral Industry Structure was also the world’s 4th ranked the world’s output of cement, and metals rich producer of natural gas, hold- industrial sand (or glass), iron The industry structure ing 16% of proven natural gas ore, and molybdenum. Iran countries, with is slightly complicated. By Sector Statistics reserves. Iran also produced also globally ranks as: the 2011, 5,500 potential mines about 37 billion over 2 million tonnes of coal world’s largest zinc reserve existed in Iran, of which over country not only possesses the information in this article tivity in the minerals and met- and over 1 million tonnes of holder; the 9th largest copper tonnes of proven 3,000 were operating, and extensive underground re- follows the same sources. als mining sector is crucial for coke in 2011. reserve; 12th iron reserves; 5th reserves, and more extracting an estimated 220 Mohammad Ali Farzin * sources – be it hydrocarbon, Such extractable under- Iran’s development path. But Iran is also among largest producer of strontium; million tonnes per annum. Ph.D. Development Economics mineral or metal – but that it ground resources play a very the 15 top major mineral and has 1.6% of the world’s total than 57 billion The majority of these mines th * The views in this article are the sole also ranks quite high globally prominent role in both Iran’s Iran’s Underground metals rich countries, with output of cement and 10 in tonnes of potential were private while 218 were th opinion of the author and in no way in the production of many. national economy and global Resources about 37 billion tonnes of terms of cement export; 11 Government owned: with construe the position of the institution Iran with about one percent of trade. Following possible in- proven reserves, and more largest reserves of lead; has reserves – in total nearly 100,000 persons di- that the author is employed with. the world’s population holds ternational agreements and Iran’s hydrocarbons have than 57 billion tonnes of po- 1.2% of world’s total output worth $800 billion rectly employed (and a fur- more than seven percent of lifting of sanctions, and given the significant place in the tential reserves – in total of sodium chloride; 3.7% ther estimated 400,000 indi- hat strikes any the world’s mineral reserves. the expected higher economic economy, as is well known. worth $800 billion in 2014. of barite; world’s 2nd larg- in 2014. rectly). The largest number of economic observer The facts and statistics are set growth rate, increasing sus- In 2011, Iran was considered Iran also has extensive miner- est producer of gypsum after employees are in mining for Wof Iran is that the out in the table below (1) and tainable investments and ac- to be the world’s 4th ranked al and metal based production China and an estimated 9% decorative stones and gravel

26 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 27 IMIDRO Exclusive

Relevant Indicators. Iran’s Production per Annum (average for 2007-2011). Approx Global Production Rank (Estimates); Main Iranian Companies; Sources: see endnote Local Value Added VA (2010); International Market Value IMV of Tonnage (2012); No. of Workers W. METALS ALUMINIUM Bauxite 650,000 tonnes Rank 10th ; Iran Alumina Co.; Alumina 250,000 tonnes. Rank 26th ; Iran Alumina Co. Aluminium ingot 210,000 tonnes Rank 17th ; Iran Aluminium Co. and Al Mahdi Co. ; IMV $420 million. COPPER Ore 27 million tonnes NICICO (part of IMIDRO); VA $1.1 billion ; W 5,300 Concentrate (32%) 740,000 tonnes NICICO (part of IMIDRO) Metal (cathode) 240,000 tonnes Rank 12th ; NICICO (part of IMIDRO) ; IMV $2 billion. IRON AND STEEL Rank 9th ; Iran Central Iron Ore Co.; Chadormalu Co.; Gol Gohar Co.; San- Iron ore 33 million tonnes gan Co.; and IMPASCO; VA $1.1 billion ; IMV $1.1 billion.; W 13,000 Pig iron 2.4 million tonnes Direct reduced iron 9 million tonnes Ferrochromium 8,000 tonnes Rank 14th Ferrosilicon 45,000 tonnes Rank 16th. Capacity expected to increase to 55 million by 2020. Main play- Steel 12 million tonnes ers are Mobarakeh Steel Co.; Khouzestan Steel Co.; and Isfahan Steel Co. GOLD 1,500 Kilograms Rank 66th ; NICICO (part of IMIDRO); and Pooya Zarcan Co. LEAD (concentrate Pb content) 25,000 tonnes Rank 16th ; VA $17 million ; IMV $50 million. MANGANESE 45,000 tonnes Rank 12th ; VA $89 million MOLYBDENUM (concentrate Mo content) 3,300 tonnes Rank 9th SILVER 15 tonnes Rank 19th Rank 14th ; Iran Zinc Mine Development Co.; BAMA Co.; and Bafgh Co.; ZINC (concentrate Zn content) 80,000 tonnes VA $52 million; IMV $160 million. INDUSTRIAL MINERALS AND MATERIALS BARITE 290,000 tonnes Rank 6th; BENTONITE 320,000 tonnes Rank 12th; BORON AND BORAX 1,500 tonnes Rank 9th Rank 5th . Capacity 55 million tonnes/year; 55 major manufacturers ; Fars and Khouzestan Cement Co. is biggest investor with about 21,300,000 CEMENT 50 million tonnes tonnes of production capacity, followed by Bank Melli Investments with about 5,800,000 tonnes. (28,000 persons), iron ore of iron ore, copper and build- that year – most of it, again, th FELDSPAR 550,000 tonnes Rank 12 ; (13,000), lime stone (7,200) ing material and stones. Many in iron ore and building mate- GYPSUM 12 million tonnes Rank 2nd; W 2,000 and copper ore (5,300), re- factors may have contributed rial. It is also estimated that KAOLIN 6 million tonnes Rank 12th MAGNESITE 130,000 tonnes Rank 13th . Birjand Refractory Mining Co.; spectively: of which only half to the small contribution of Iran’s mineral between 2000 to 2010 about MICA 3,000 tonnes Rank 9th the employees are considered mining to GDP, including: $2 billion was invested in NATURAL IRON OXIDE 2,600 tonnes Rank 9th as “skilled”. There were also lack of suitable infrastructure, reserves are the mining sector. The Teh- NEPHELINE SYENITE 70,000 tonnes Rank 4th about 900 active mining co- legal barriers, exploration dif- estimated to be ran Stock Market, as a further NITROGEN (AMMONIA) 2 million tonnes operatives, with about 46,000 ficulties, and government con- indicator, had nearly half of NITROGEN (UREA) 1.4 million tonnes members and 9,000 workers. trol over resources. However, valued at $800 its capitalization in mineral PERLITE 30,000 tonnes Rank 10th The total value of pro- once mining-related industry billion (2014), industries in 2009: and given PHOSPHATE ROCK (ORE) 330,000 tonnes Iran Mineral Production and Supply Co. duction in the metals and min- production (e.g. including the sectors high profit margins th PHOSPHORITE 62 thousand tonnes Rank 27 erals mining sector (including final metals and cement- pro while investment (of 60% or so). SALT 2.8 million tonnes coal) was about $5 billion duction) is also considered, The above is also well SILICA (INDUSTRIAL) 3 million tonnes Rank 14th in underground (the exchange rate of the time the sector contribution rises to indicative of the link between SODA ASH 140,000 tonnes Rank 20th - $/1200Rials – has been used about 5% of national GDP. resources iron ore and building materi- SODIUM SULFATE 600,000 tonnes throughout). The total input Iran’s mineral reserves als with urban development STONE extraction has and material costs of this pro- are estimated to be valued at and infrastructural building: th Construction (crushed) 20 million tonnes, Rank 13 duction were about $1.3 bil- $800 billion (2014), while been estimated by the two latter being probably Decorative 12 million tonnes W 12,600 lion (of which wages/salaries investment in underground Iran’s main economic growth Dolomite 800,000 tonnes some to be at 30% were about $700 million). The resources extraction has been engines. As further indicators, Limestone 90 million tonnes W 7,200 of all investments STRONTIUM 15,000 tonnes expected value added (i.e. estimated by some to be at Kerman province is the larg- 1.6 million sector GDP) was about $3.7 30% of all investments in re- in recent years. est producer of mining value SULFUR AND PYRITE Rank 12th tonnes[90] billion: or probably less than cent years. About $600 mil- added, followed by Yazd TALC 90,000 tonnes Rank 16th 1% of national GDP. Most of lion of investment was under- province; they are also the TURQUOISE 20 tonnes Rank 1st the value added was in mining taken in the mining sector in largest investment provinces

28 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 29 IMIDRO Exclusive

centrate and ingot. The two administers all mineral and important mines in Iran are: metal mining, smelting, and Mahdi-Abad, with 75 mil- refining industries. lion tonnes of ore with a zinc Various international concentration of 6% and a sanctions imposed on Iran lead concentration of 2.7%; have, however, affected Angouran, with 16 million the mineral sector, which tonnes of ore with a zinc con- historically has required centration of 26% and a lead large investments to develop concentration of 6%. The mineral deposits (especially largest producers are: Iran metal ores and crude Zinc Mines Development petroleum) and to process Group; Bama Mining and In- the minerals. Initially, the dustrial Co.; Bafgh Mines Co; petroleum sector was the focus and Calsimin Co. of sanctions but prohibitions on other types of transactions Cement. Iran is the 8th followed, including targeting cement producer in world of international investments and 2nd in the Middle East - and the provision of goods producing over 50 million and services that could tonnes of cement per year enhance Iran’s ability to and exporting to 40 countries. import, including finance, Iran constitutes 1.8% of the th duced about 33 million tonnes Khouzestan Steel (23%); and, world’s cement production - Iran is the 8 of iron ore (fines, lumps and Isfahan Foundry (20%). In and also 1.6% of the world’s The Sarcheshmeh concentrate) in 2011 – rank- 2010, Iran established the cement consumption. It also cement producer th mine in Kerman nd ing as the 9 largest producer largest galvanized sheet pro- has significant engineering in world and 2 in of iron ore – mainly from the duction plant for automo- capacity: IMIDRO reported Province contains the Middle East - Chadormalu and Gol Gohar biles in the Middle East: the that 9 countries (including the world’s second Iron Ore mines (which to- plant, owned by Iran Khodro Syria, Venezuela, Bolivia, capacity mining and mineral- capacity expansion projects clude: projects that complete producing over 50 gether account for 80% of and Saipa , has a capacity of Algeria, Lebanon, Ecuador, largest single processing companies, es- and new mineral commodity aluminium metal production million tonnes of iron ore production in Iran). 400,000 tonnes per annum. Iraq, Belarus) will have reserve of pecially those that produce development projects in Iran’s lines, projects that mobilise Chadormalu Mining and In- Iranian manufactured cement aluminum, ammonia, coal, mineral sector are underway coal, iron ore, steel, copper cement per year dustrial Company produced Aluminium. Iran’s plants. With nearly 60 active copper ore. copper, iron and steel, and and planned – some of it and pigment metals produc- and exporting to 10 million tonnes of iron ore aluminium production is production units in Iran, half sulfur. The Government is, through IMIDRO. In the steel tion, ferro alloys projects and and is the largest iron ore expected, according to IM- are listed on the Tehran Stock brokering, insurance, and however, increasingly an- and copper sectors alone, it gold production. 40 countries. producer listed on the Tehran IDRO, to exceed 1.5 million Exchange: the main ones shipping services, as well as ticipating divesting some of is seeking to raise around Stock Exchange; while Gol tonnes by 2020. Planned proj- being Fars and Khuzestan restrictions on Iran’s access to its interest in mineral-related US$1 billion in foreign (Endnotes) 1 The information and statistics con- respectively. Some further Gohar Iron Ore Company ects include Alumina Mine’s Group (market share of 24%), bonds and insurance markets, operations. IMIDRO has, financing. tained in this article and the accom- production highlights are in- produced 7 million tonnes of 100,000 tonnes per annum Abyek (8%), Tehran (7%), and transfers of funds to and since 2002, transferred Gov- There has been some for- panying table have been sourced and dicated below. iron ore, and its pellet plant project in North Khorasan, and Sepahan (6%). from Iran. The Government ernment owned assets to the eign investment in the min- consolidated through the following near the southern city of Sir- the 276,000 tonnes per annum program to phase out subsidies value of $30 billion to the pri- eral sector over the past few (but should not, obviously, be considered as 100% exact): Copper. The Sarchesh- jan is the biggest of its kind in South Aluminium project and Governance and Financing to the economy, together with vate and cooperatives sectors years; however, international A. Production: meh mine in Kerman Prov- the Middle East (producing 5 the 375,000 tonnes per an- international sanctions, made – using the revenue to mainly funding for capital-intensive a. Statistical Centre of Iran, Year- ince contains the world’s sec- million tonnes of iron ore per num Khuzestan Aluminium The Mining Code of the availability of affordable pay off general Government mineral-metals projects has book 2012; b. US Geological Survey 2011 and ond largest single reserve of year, enough for production project. The largest plants for 1998, and its amendments, energy, of funding, and access debt. It is also now overseeing been limited owing to sanc- 2012; th copper ore. It also has gold. In of 2.5 million tonnes of steel). aluminium production in Iran regulate mining in Iran; the 5 to export markets also more the development of eight iron tions. The Government’s 20- c. UK Geological Survey, 2011; 2010, Iran ranked 10th in cop- Iran became self-suffi- are Iralco, Almahdi, and Hor- Five Year Development Plan difficult for small and medium and steel plants in eight prov- year Perspective Plan for the d. Wikipedia’s Mining in Iran; per ore production and 12th in cient in steel production in mozal. (2011-2015) has proposed sized mining operations vis- inces of Iran. Another entity, mining sector intends to at- B. Approx Global Production Rank (Estimates): Wikipedia’s Mining in copper cathodes production; 2009, producing 7.5 million that production capacities à-vis the larger Government- the National Iranian Mining tract $20 billion, mostly in Iran and exported over $1billion tonnes of direct reduced iron Lead and Zinc. Iran of mineral commodities be affiliated companies. Company is estimated to be foreign investment, and will C. Main Iranian Companies: various worth of copper cathodes. (DRI), or 13% of global DRI has over 220 million tonnes increased significantly; while Although most of the the world’s 23rd largest min- partly require use of “buy- Iranian sources; The National Iranian Copper production and 41% of total of proven zinc and lead ore Articles 44 and 45 of the country’s mines are pri- ing holding company - with back” methods for attracting D. Local Value Added (VA) (2010): Statistical Centre of Iran, Yearbook Industries Company (NICI- Middle East DRI production. reserves: about 5% of the Constitution support resources vately owned, the Govern- 0.6% of the world’s total min- foreign capital, services and 2012 CO) is one of the largest com- Iran is the world’s 16th steel world’s reserves. In 2009, it extraction and development ment - primarily through the ing production. technical expertise, while in- E. International Market Value (IMV) panies listed on the Tehran producer. The major raw steel ranked 15th in the world in and the prompting private Iranian Mining Industries The Government is tending to expand exports. of Tonnage (2012): price based cal- Stock Exchange. producers in Iran are: Mo- terms of zinc and lead pro- seeking foreign investment for The types of projects eligible culation sector development in Development and Renova- F. No. of Workers (W): Statistical barakeh Steel Mill (estimated duction; and exported 77,000 this field. The Ministry of tion Organization (IMIDRO) the development of the mining for such buy-back agreements Centre of Iran, Yearbook 2012 Iron and Steel. Iran pro- 47% market share in 2010); tonnes of zinc and lead con- Industries, Mines and Trade - controls many of the larger sector. Numerous production- and foreign loan facilities in-

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tors showing the growth of copper: Supply and demand industrial production, sta- are the main factor in creat- tistics on formation of ma- ing fluctuations in the price of jor world economies, trade copper. When financial crises balances, indicators on the are in the process of forma- Copper extent of development, etc.) tion, demand for copper will are all measured with price immediately reduce and at fluctuations and consump- the time of development de- tion of basic metals such as mand for the substance will copper and in some cases quickly increase. However, are referred to as indicator of calculations show that copper Industry economy or barometer of the consumption is still rising and economy of the world today. growing at 4.5% annually. 3) Macroeconomic in- Some factors affecting dicators: Economic indica- world price of copper tors of top economies such as industrial products of the in World As mentioned above, US and China that are known fluctuations in base metals as one of the most important are considered one of the factors for purchasing man- economic indicators. Some agers are indicative of the safety of economy and the Copper is used more the indicator grows the & in Iran more price of base metals in production will increase. Always posi- By: Ali Bakhtiari Ghale, IMIDRO amount of its consumption tive growth of figures on jobs, has increased by 20 folds in of copper wire, estate sales and housing in the opper is the third most less than a century. Of course copper pipe, US has positive effects on the widely consumed convictions that copper has electrical magnets, price of copper. Cmetal after steel and treatment power and its me- 4) Arbitrage: That means aluminum. Copper is the dicinal properties are a differ- electromagnetic the difference between the name of a chemical element ent topic of discussion. sales price on the London in the periodic table with the engines, Watt’s Stock Exchange and on symbol CU which is derived Global copper deposits steam engines, Shanghai Stock Exchange. from the Latin term cuprum. Each time the prices in the Its atomic number is 29 and There are open and un- electrical plugs Shanghai Stock Exchange it is a metallic element with derground copper mines in and relays, are higher than the London high ductile, thermal and the world and currently a Stock Exchange, it would electrical conductivity. Pure major portion of the world vacuum tubes, promise rising prices. The copper is soft and malleable copper is extracted from cathode ray reason for this is because of and its part which is exposed open mines with lower costs increased imports by China to air is in red to orange color. as compared to underground tubes, military and the growth in demand in Copper, because of its mines. Presently the world’s industries, etc. the market. numerous applications for most important copper mines 5) Change in interest the manufacture of widely are located in Canada and rates: Increase in interest consumed products, is high- Mexico in North America, of the factors that cause these rates will lead to lower prices ly important. From the late Chile and Peru in South fluctuations will be discussed for metals. nineteenth century the impor- America, Iran, Kazakhstan, briefly below. 6) Extent of supply: In- tance of copper was doubled Uzbekistan, northern Siberia, 1) Change in major crease in supply of copper in because of its close link with Japan and Indonesia in Asia, world currency exchange the world will result in lower electricity. Copper is used in Poland, former Yugoslavia, rates such as US dollar, euro, prices. This phenomenon oc- production of copper wire, Spain, and Norway in Eu- share in its possession. are among the most important the world. India is the third of copper consumption. yen and yuan. Since the base curred from 1969 till 2002 copper pipe, electrical mag- rope, Zaire, Zambia, South Parts of Iran are located copper mines in Iran. How- copper producer in Asia. Since the base metals are price of copper is in US dol- and caused investors to aban- nets, electromagnetic en- Africa and Uganda in Africa, on the world’s copper belt ever, streaks of copper can be China is the world’s larg- highly affected by global lar, basically a weak dollar don the copper market. Con- gines, Watt’s steam engines, Queensland and Bougainville which runs from northwest up detected in other parts of the est consumer of copper fol- economy, the factors re- may cause increase in pur- sidering the growing demand electrical plugs and relays, in Australia. Meanwhile, the to the southeast of Iran. Cop- country such as Khorasan. lowed by the United States lated to macroeconomics chases by countries that use for copper and the experi- vacuum tubes, cathode ray Codelco Company of Chile per mines of Sarcheshmeh China, Chile and Japan and Germany. In Asia after (such as economic growth other monetary bases such as ence of previous years, it is tubes, military industries, by holding about 18% of the and Meidouk in Kerman and have the highest amount of China, Japan and South Ko- of all countries possessing China and Europe. unlikely that this would hap- etc. For the same reason the world reserves has the highest Songun in East Azarbaijan refined copper production in rea have the highest amount effective economy, indica- 2) Global demand for pen again. Meanwhile, large-

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scale projects in the field of metals downward. south of Rafsanjan, is situated Copper is an example. Iran production of copper are not Also remarks by some in the central area of Zagros possesses a large number of under implementation so that manufacturers indicate de- Mountains. Sarcheshmeh small-scale copper mines their opening would seriously creased production level, in- Copper Mine is considered as which are mostly run by the change the cycle of supply cluding Olympic Dam BHP one of the largest complexes private sector. In central parts and demand. in South Australia which of mining industry of the of Iran and in Khorasan and 7) Emergence of sub- has announced an output cut world and is the largest cop- Semnan several copper mines stitute products: Today the of 60 to 70 thousand tons of per producer of Iran. have been explored. speed of technological devel- copper in the current year due The archeological re- In the calendar year opments is so high that any to periodical maintenance. serve of the mine is over 1363 (1984-85) production time emergence of a substi- However, a number of other 1,200 billion tons of sulfur of Iran’s cathode copper tute product at a lower price manufacturers, particularly ore with an average alloy of amounted to about 300 tons and better properties in the newcomers to the market, 0.7%. Sarcheshmeh Copper per year until 1372 when it market is possible. This risk have announced increased Mine in terms of geology has increased to 72 thousand tons widely exists in the case of production. The International been placed on the global belt annually. This figure, 10 years high consumer products such Copper Studies Center fore- of copper and its expansion later, increased to 146 thou- as copper and aluminum. Of casts a growth of 7% in pro- area from southeast to north- sand tons and in 1390 (2011 course such an event will be duction in 2015 on the basis west is an elliptical range – 2012) reached 235 thousand mutual and in return there is of which copper production with the dimensions of 1200 tons per year. In the past year, the possibility for new appli- will reach 20 million tons per x 2300 meters and a depth of Iran’s copper production fell cations of these products. year. Production of this red 1612 meters. to 188 thousand tons per year color metal in 2014 as com- Mineral structure in this due to the reduced alloy of the Analysis of copper market pared with 2013 made a 3% mine. in recent years growth and increased from Parts of Iran are IMIDRO is implement- 18.101 million tons to 18.644 ing a plan for comprehensive In 2014, among other million tons. located on the updating of Iran’s copper in base metals copper had the world’s copper an effort to support devel- weakest performance and Copper industry in Iran opment of this industry and continued the same trend in belt which runs create the required infrastruc- 2015. In late December 2014, from northwest tures and will unveil the plan the price of copper fell to during the current year. Due its lowest during the past 4 up to the to the relative advantages of years. The price of copper for southeast of Iran. Iran’s copper industry, in- delivery in three months with cluding several copper mines, 2% decline reached $6136 Copper mines proximity of the mines to infor each ton in the Shanghai of Sarcheshmeh ternational waters, skilled and Stock Exchange. trained forces in the metallur- Meanwhile, the fu- and Meidouk gical industry of non-ferrous ture delivery fell 8.1% and in Kerman and metals, especially copper, dropped to $6145 per ton experienced university gradu- which has been the lowest Songun in East ates, access to energy, low price from 2010 up to date. Azarbaijan are wage costs, etc. it can be The price of copper fell about among the most claimed that Iran is a good 14% in 2014 and from the be- place for investors interested ginning of the year 2015 has important copper in copper market. dropped by 6.2%. Economic mines in Iran. Meanwhile, part of cop- analysts consider return of per produced in Iran is ex- copper price in the downward ported as cathode. Turning the channel and in the short-term Some scientists and ar- who for the first time melted In Iran, a point where In the opinion of T. exploitation of copper mines region is in the form of mul- substance into downstream unlikely. Since May 20 so far, chaeologists believe that cop- natural copper and copper the oldest information about Wertime, the oldest Iranian has been a common practice tiple tissues (porphyry) and industries with high value copper stocks on the London per was first discovered and stones. In the third and fourth copper smelting has been ob- copper mine is Talmesi near in different eras. the stone of the region is of added for sale inside Iran, in Stock Exchange reached its used in Iran. Archeological millennium BC the industry tained is the Sialk ancient hill Anarak. It is widely believed But in modern times granodiorite type and the time neighboring countries and highest degree. Reports pub- explorations and research of melting copper was prac- in Kashan. From Dr. Girish- that people of Sialk in Kashan the peak of industrialization for its formation is about 25 other parts of the world can lished by the US which show works conducted to develop ticed in many parts of Iran. man’s excavations in Sialk a supplied their demand from of Iran’s copper date back to million years ago. With the bring good profits to inves- the country’s desirable eco- mines show that people of In Ilam 3500 BC, in Kurdes- number of pre-history tools this mine. Copper and gun- identification and explora- development of the region tors. Iran’s copper industry is nomic situation has strength- this homeland not only used tan, Lorestan since the second have been obtained which are metal devices unearthed in tion of the large Sarcheshmeh and increased exploration in considered one of the most at- ened the US dollar index and raw copper materials in this millennium BC and in Kho- clearly older than the oldest different parts of the country Copper Mine. Sarcheshmeh the country favorable cop- tractive industries which has the drop in oil prices, caused millennium but were, accord- rasan since the third millenni- examples unearthed from the as a result of archeological Copper Mine, 160 km south- per areas were discovered in the backing of government as pushing price of major base ing to technologists, the ones um BC copper has been used. Devil’s Hill. research works indicate that west of Kerman and 50 km Azarbaijan of which Songun well.

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tion for the Iranian nation. “The Islamic system put an end to this humiliation, and the talented and noble Iranian people brought honor to Islam and power and dig- nity to their country through their perseverance, scientific progress and innovations,” he told the gathering. The Leader called on all young Iranian scientists and researchers to increase their Leader Visits Copper creativity, innovation and initiative, which he described as the major factors contributing to human progress. He stated that any nation that works Plant in Sarcheshmeh hard and does not disregard spirituality while making ma- “We are obtaining knowledge from others but do not stop at mere learning, as we intend to raise the present level of knowledge in the world. There are bright prospects for scientific work in our country.”

terial progress will enjoy all the blessings of the Almighty according to inviolable divine promises. Further in his statements, Ayatollah Khamenei referred to Islamic injunctions advis- he Supreme Leader tions of the copper plant and sources. He also emphasized Iranian engineers, scientists as owed to selfless efforts of cerning the utilization of min- under the banner of Islam, ing Muslims to obtain knowl- of the Islamic Repub- the projects that were under- that in all kinds of industrial and technicians are utilizing the skilled workers, engineers eral resources. thanks to their resistance to edge no matter in which part Tlic of Iran Ayatollah way there. activities, great attention the treasures hidden in the and directors of the plant. He “Some nations are pre- the enemies of Islam and their of the world it exists. Seyyed Ali Khamenei visited Praising the valuable should be paid to environ- Iranian soil for the welfare noted that the firm intention, vented by the domination country,” he pointed out. “We are obtaining a copper plant in the city of services of the directors, mental issues. and progress of the Iranian great motivation and laudable exercised by the arrogant Hinting at the era be- knowledge from others but Sarcheshmeh in the course of engineers and other techni- Following his tour of nation. efforts of the entire staff have powers and by their own fore the victory of the 1979 do not stop at mere learning, his tour of Kerman Province cal staffers of the Sarchesh- the complex, in an address to Expressing pleasure turned the development of the ignorance from using their Islamic Revolution, Ayatol- as we intend to raise the pres- (May 2005). meh Copper Plant, Ayatollah thousands of staffers of the with his visit to the large plant into a cause of honor for natural resources in an appro- lah Khamenei stated that the ent level of knowledge in the During his visit to the Khamenei pointed out that copper plant and their fami- copper plant in the city of the country. priate manner. However, the running of the Sarcheshmeh world. There are bright pros- complex, the Leader was Iran ranks above the world’s lies, the Leader stated that the Sarcheshmeh, Ayatollah The Leader of the Islam- Iranian people are exploiting Copper Plant by the British pects for scientific work in briefed by the technical staff average with respect to the dexterous hands and innova- Khamenei described the de- ic Republic further referred their resources to make prog- and American staff in the pre- our country.” on the activities and opera- possession of mineral re- tive minds of the dedicated velopment of the complex to the Islamic guidelines con- ress and achieve development revolution era was a humilia-

36 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 37 IMIDRO Exclusive Copper a Metal for Development

ence of First Vice-President Eshaq Jahangir the second phase of Sungun Copper Con- centration Plant was commissioned. The hard currency and local investment of the project is 95 million euros and 2,470 billion rials, respectively. With the operation of this project direct employment opportunities will be created for 200 people while indirect jobs will be created for 1000 other people. With the commission- Ahmad Morad Alizadeh, ing of this project, concen- Managing Director of the National trate output at Sungun Copper Iranian Copper Industries Co. Complex was doubled. The second phase of ith the implemen- Sungun Copper Concentration The extracted copper ores a limestone processing plant establishment of a lime plant tation and commis- Plant is an advanced copper from Sungun deposit are cur- With the operation with the capacity of 150 tons with a capacity of 150 tons per Wsioning of copper recovery plant with state-of- rently transported to Sarchesh- per day to be launched in the day as of the beginning of the industry projects in Kerman the-art equipment that enables meh copper complex in Ker- of this project beginning of next Iranian year calendar year 1394 (March 21, and East Azarbaijan Province it to recover up to 92% of the man province, but could be (starting March 21). 2015). He said with regard to the economy of these regions available copper from the ex- exported to neighboring coun- direct employment Jahangiri called for more the high costs of mining proj- is set to develop in the coming tracted ores. tries such as Armenia and Azer- opportunities will private sector investment in ects for implementation of years. The copper concentra- baijan once the existing dif- mining projects, noting that a projects banking facilities are The National Iranian tion plant in East Azerbijan ficulties caused by imposition be created for mine extraction fund has been required. Copper Industries Company province was inaugurated by of sanctions against Iran are 200 people while allocated by the government has revised its development first vice-president, Eshaq eased, said Morad Alizadeh. to mitigate the risks associ- After-sale services center for projects in proportion with do- Jahangiri and the Minister of The construction of Sun- indirect jobs will ated with mine exploration mining machinery in Ker- mestic capacities and interna- Industry, Mine, and Trade, gun copper concentration be created for activities. man proposed: Managing tional economic developments. Mohammad-Reza Nematza- plant began in 2010 by Khat- Pointing to 13000 billion Director of the National Irani- It is expected that in the course deh on February 7th. amol Anbia engineering com- 1000 other people. rials investment in different an Copper Industries Compa- of the coming years about euro The plant can recover pany in collaboration with a sections of Sungun Copper ny, referring to the widespread 2 billion will be invested in 150,000 tons of copper con- Danish company, with a total area 100 kilometers north east Complex, he noted that the mining activities in Kerman Kerman and East Azarbaijan centrate of 26% grade from 7 investment of 95 million euro of Tabriz, the capital of East primary feedstock of the fac- and Yazd proposed establish- provinces with an aim of in- million tons of 0.66% grade ($83.5 million) and 2,470 bil- Azerbaijan province, enjoying tory for the second phase of ment of a center for after-sale creasing production capacity copper ore extracted from the lion rial ($72.6 million), said proximity to Armenia and Sungun is 7 million tons of services for mining machinery to 400 thousand tons of copper. mine, doubling the plant’s ex- Morad Alizadeh, adding that Azerbaijan countries. The copper hunk with a grade of in the region to the visiting in- isting capacity to 300,000 tons, the project is expected to cre- mine is estimated to have more 0.66% per year and at the time dustry minister of Belarus. Commissioning Second of according to the managing di- ate 200 direct and more than than 700 million tons of grade of operation it will provide for Belarus minister of in- Phase of Sungun Concentra- rector of the National Iranian 1000 indirect jobs. 0.661% copper ore reserves. direct employment of about dustry recently visited Iran and tion Plant: In the winter of Copper Industries Company, Sungun copper deposit Morad Alizadeh also an- 100 people. together with the ambassador 1393 (2014-2015), in the pres- Ahmad Morad Alizadeh. is located in a mountainous nounced the construction of He announced that the of that country in Iran had a

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meeting with Morad Alizadeh. tion of Europe. Referring to a plan for Establishment systems development of the NICICO such as the online measure- with an aim of increasing its ment of water quality, recov- production capacity to 400 ery of over 95% of water from thousand tons in the next few thickeners and tailings dams, years, Morad Alizadeh said wastewater treatment sys- to this end the Copper Com- tems, waste management and pany will make an investment environmental monitoring are of about 2 billion euro which among plans that have played provides a proper opportunity a role in achieving this out- for cooperation with foreign come. By offering these plans companies. the Sungun Copper Complex He pointed to the exis- managed to acquire interna- tence of copper and iron ore tional certificates in the field mines in Kerman and Yazd of green management. provinces and said a large number of mining machinery Attracting private sector manufactured in Belarus are partnership: The National being used in this region by Iranian Copper Industries different companies active in Company has used capabil- copper and iron ore mines. ity of the private sector m for “We propose that the Belarus implementing development projects. Also, he added, his country which had managed to receive The company issues cer- It is determined manufactures industrial elec- a plaque of honor from the In- tificate for discovery of the two to take measures tro motors and needs copper ternational Energy Foundation “Bagh-e Khoshk” and “Eijoo” for their production. recently for implementation mines in Kerman Province for maximum use He welcomed the propos- the project on decomposition through tender. Also, the Na- of domestic and al by the managing director of of Askarel oil at Sarcheshmeh tional Iranian Copper Indus- the Iranian Copper Company Copper Complex, succeeded tries Company is the owner of foreign investment for establishment of after-sale in obtaining another interna- the shares of Kermanian Com- in power services center of mining ma- tional certificate. bined Cycle Company. It is de- chinery in Kerman and called During repeated inspec- termined to take measures for generation which for preparation of a draft proj- tions of domestic and foreign maximum use of domestic and is required by the ect by the Copper Company. experts for its positive perfor- foreign investment in power mance, Sungun Copper Com- generation which is required industrial and Receiving international en- plex was hailed and acquired by the industrial and produc- production units. ergy award: The National the “EAST” award by the tion units. This will be done by Iranian Copper Company Green Management Associa- holding tenders for identification and evaluation of appli- side establish centers for after- cants who enjoy financial and sale services in Kerman or technical capabilities for 49% Rafsanjan.” partnership in construction of According to the report, Kermanian combined cycle during the meeting the Belar- power plant. us minister of industry while welcoming the proposal of the National Iranian Copper Com- pany, underlined the need for expansion of cooperation. Stressing that Belarus is a country which has limitations in the field of natural resources and mines, the Belarus National Iranian Copper minister said his country pos- Industries Co. sesses technical knowhow and No. 2161, Valie-asr Ave., industrial equipment in many Tehran, Iran fields and is prepared to coop- Tel: (9821) 82138000 erate with Iranian companies. http://www.nicico.com

40 IRAN INTERNATIONAL, June 2015 IMIDRO Exclusive

If our real capital such as mines, geographic position of Iran, access of our country to the international waters in the south, to the railways and air routes did not exist we would have experienced a great difficulty.

Rouhani's Remarks on Sarcheshmeh Copper

he government will development and so man countries, and if we still have stability not only essential for of the mining sector as one of country’s mining executives provide the conditions students, graduates, experts, one or two neighbors which the industry of our country but the significant pillars of our on the status of coal and the Tfor entry of foreign in- university professors and are reluctant, we have given for the production and peace economic independence, said: problems that are plaguing vestment as domestic capital colleges, universities, high them the necessary signal for of our own people and the “As far as we could we have workers in this sector, said: is not enough for the projects schools and vocational centers good relationship. people of our region and will made recommendations to the “Laws that are not enforced in ahead. we would have faced a great We want to have friendly continue this path. commission in this regard and this regard should be reported Iranians residing abroad problem. Beside these two as- and fraternal relations with Now we are in a situa- in future a working group can to the Majlis to be followed up as well as the foreigners sets we need the social asset good neighborly and sincere tion in which the government be formed in this section for and cases without laws can be should be encouraged for as well and we should have ties with our neighbors and should help the production the 1394 budget or for formu- taken into account in the next making investment inside confidence in the future; and consider this way beneficial sector and we will do so. lation of the 6th Plan.” year budget.” the country such as in the of course all should respect for the country and for the He said mines are the In conclusion the speaker mining sector. Today on the the law. neighbors and the entire na- Remarks by Majlis best places for the removal of the Islamic Consultative question of inflation you can We should see the coun- tions of the region. Speaker concerning mines of unemployment and added: Assembly said in this regard see that the government has try’s stability and security in We have employed all “Once we paid so much atten- the country can cooperate with acted according to what it had the future and should be con- within our power for estab- Speaker of the Majlis tion to oil and did not make other countries, adding that in promised and announced. If fident that the government is lishment of stability, tranquil- Ali Larijani while referring optimum use of the mines the mining sector a chapter our real capital such as mines, not the type of government ity and prevention of war and to mines as an important pil- therefore necessary examina- can be considered for regional geographic position of Iran, that would make a decision conflict in the region and will lar of economic independence tions should be conducted in financing with the participa- access of our country to the in a session without consulta- do so in future and know that said: “Mines are the best loca- this regard in order to provide tion of other countries and international waters in the tion; we should make sure that extremism, violence, coarse tions for removing unemploy- more budget and allocations also budgetary proposals can south, to the railways and air this government is capable discourse and intervention in ment and the mine movement from the National Develop- be forwarded which will be routes did not exist we would and able to preserve stability the affairs of this and that will should be launched in the ment Fund.” in rendering help to improve country so that no mine will supported by the Majlis if nec- have experienced a great and tranquility of the market. benefit no country. country.” Stressing the need for the condition of mines, he remain idle.” essary. difficulty. We will bring closer our re- We consider good rela- Larijani, noting that there making the required study said: “The mining movement Larijani, referring to cer- If there were no human lations with our neighboring tions, security and regional is no doubt in the importance and finding effective ways should be launched in the tain statements by some of the

42 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 43 IMIDRO Exclusive

Shahre Babak Gratitude

ur special issue on IMIDRO was published Copper Company Othanks to the hard work of my colleagues at Iran International. But we were not alone in our effort to make this happen. hat follows is the (GDP). With this outlook, the industries can be used in the text of an interview initial outcomes of the Com- Iran by producing neighboring countries. Therefore, I would like to express my special with Mr. Siamak prehensive Copper Plan can thanks to: W about 225 Sinaei, Managing Director of be outlined as follow: How Scattered Are Shahre Babak Copper Com- 96% of the value added thousand tons of Copper Mines in Iran? pany on the achievements and of mineral products of copper One of the main cop- in the world and in Iran origi- 13 thousand tons of hydro future plans of his company: is related to the copper con- copper containing per belts in the world passes nates from the low level of metallurgy in 1391 (2012- centrate and about 4% of it is concentrates through Iran. This belt passes mining activity and low eco- 2013) was the 14th copper Would You Please Elab- related to the milling and re- from northwest to the south- nomic attributes of their ex- producer in the world. Russia orate on the Plans of Shahre fining sector. Therefore, from and 13 thousand east of the Middle East and on ploration, extraction and ex- with a production of 620 thou- Babak Copper Company? a sovereign perspective, post- tons of hydro its way out of the Middle East ploitation. These mines would sand tons of mineral copper, With regard to the sov- concentrate production stages runs through Pakistan and Af- be profitable only at higher Kazakhstan with 406 thou- Ali Bakhtiari Qale’, senior international expert ereign role of IMIDRO in the should go as far as addressing metallurgy in 1391 ghanistan and enters Tajiki- copper prices. sand tons and Indonesia with in mining and mineral industries strategy for his mines and mining industries the real domestic needs of the (2012-2013) was stan, Kyrgyzstan and Kazakh- Therefore, with regard to 398 thousand tons are among excellent job in helping us with preparation of and after privatization of the country. th stan in Central Asia. Statistics the slow pace of rising copper neighboring or CIS countries National Iranian Copper In- Due to the presence of the 14 copper show that the total copper price up to 2035, smaller cop- that have higher production articles, conducting the interviews and invitations dustries Company (NICIC) small and scattered mines in producer in mines in Iran amount to 18.4 per mines can find a proper than Iran. forwarded to mineral companies which was the sole caretaker the country, concentration of million tons which account for place in Iran’s economy and In the field of refined of copper in the country, the copper development in the the world. 3% of the entire world copper increase the present produced copper Iran with a production follow up of the dominant re- first place should be focused reserves. concentrate of 40 thousand of about 200 thousand tons sponsibilities was delegated to on increasing support for ration procedure and prepa- In 2013 the average puri- tons to a possible 200 thou- was the 19th cathode producer our company by the Executive hydro metallurgical produc- ration and availability of a ty of the world mines was es- sand tons if they observe the in the world. Board of IMIDRO. At present, tion which is economical at comprehensive exploration timated at 0.67%. Meanwhile, following requirements: the discussion on ultimate and lower capacities. data bank can guarantee an the average alloy of major 1. Launching an associa- How Would You nationwide supervision over With regard to the drop investment of 2 billion euros mines in Iran is 0.59%. The tion to connect miners Assess the Status of Copper copper is somehow pursued in in copper price in medium at the National Iranian Cop- alloy of Sarcheshmeh Copper with the government for Industry? Ahmad Bakhtiar for his effective publicity our company. In this respect term (according to the esti- per Industries Company and Mine is 0.58%, Meydouk is removing legal hurdles in With an investment of 2 work and inviting various companies to promote preliminary studies of the mates of CRU up to 2021there 0.61% and Songun is 0.60%. mine extraction billion euros by the National ensure the country’s copper their activities in this special issue of IMIDRO Comprehensive Copper Plan would be a surplus of copper industry. Therefore, the fo- 2. Appropriate risk cover- Iranian Copper Industries have been conducted for a pe- concentrate in the world) the cus of IMIDRO and NICIC What Are Your Rec- age by insurance funds Company Iran’s copper indus- riod of one year from 1392 to industry should focus on re- should be on systematic and ommendations for Smaller especially in the case of try is expected to double out- 1393 (March 2014 – March ducing costs and promoting organized exploration. Copper Mines? exploitation put in the next four years and 2015) the results of which productivity as well as pro- Given the capacity of In many developing 3. Helping maintenance of reach 445 thousand tons of have been put at the disposal ducing subsidiary products 950 thousand tons of down- countries smaller mines play infrastructure in road, cathode in 1397 (2018-2019) of IMIDRO. such as rhenium. stream copper industries in the important roles in bringing water and electricity in from the current 200 thousand Industries supporting country at present only 20% of about welfare and increas- smaller mines tons. This increase in produc- Would You Please copper such as chemicals, the capacity is being exploiting revenues in deprived ar- 4. Guaranteed purchase of tion will be possible only by Hossein Arjomand for the great job he did in Briefly Refer to the Primary rubber, etc. will enjoy proper ed. In comparison to global eas with an evident positive mines or helping exports relying on the plans of NICIC taking exclusive pictures on mines and IMIDRO Outcomes of the Compre- value added during the global norms there is 2.8 thousand impact on their economies. by the government as the largest copper producer hensive Copper Plan? recession thus making invest- billion rials of surplus invest- Studies conducted in 30 world of the country. If IMIDRO managers despite the little time he had to With a value added of ment in this field would be ment in this regard. In case of countries show that about 13 What Is the Global discovers new copper mines accomplish this $103 billion copper stands in profitable. Therefore, it is bet- creating associations in down- million people are directly Ranking of Iranian Copper in its ongoing explorations the second place among major ter to make this investment stream copper industries and involved in exploitation of in Terms of Reserves, Ex- along 200-thousand-km in- metals of the world and there- through mineral companies. development of risk manage- smaller mines. The lives of 80 traction and Production? frastructures are ready to fur- Seyed Hussein Sanaei, fore this metal after steel can Increasing the budget ment mechanism the capacity to 100 million people depend Iran by producing about ther increase production in the Chairman & Editor-in-Chief promote the share of mines for copper exploration, boost- can be actualized and export on the mines. The main weak- 225 thousand tons of copper country. in the gross domestic product ing supervision over explo- capacity of the downstream ness in exploitation of mines containing concentrates and

44 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 45 IMIDRO Exclusive

rka Hamayesh Pars th Exhibition Company Annual Iran’s Mines & Mining Industries Exhibition is one of the most & Conference on Investment Opportunities in Iran’s powerfulA organizing groups 4 of specialized exhibitions in Mines & Mining Industries Iran. The group is intended to IMAM KHOMEINI MOSALLA, TEHRAN-IRAN use new techniques of market th st expansion in order to prepare September 29 - October 1 ,2015 the ground for bringing the intermediate and final producers and consumers closer together. Familiarizing companies with an aim of boosting the value added chain and developing industrial clusters between domestic and foreign companies are also among other plans of the group. We know that access to the expanded world markets requires movement toward open economy, employment of export leap strategies and prudent policies towards the needs and demands of different customers in different 2015 markets. Success in achieving Specialized Exhibitions this goal requires strong presence of the private sector as well as state-dependent sectors in different markets. Increase Private MINEXIran,s Mines & Mining Industries Exhibition Exhibitions are one of the most important platforms in presenting and introducing capabilities and technical capac- Sector Capability ities of production and service units. Exhibition is a center for related industries, services, machinery, laboratory equip- exchange of information and relevant science and research. ment, telecommunications, access to modern scientific The exhibition started its ac- Arka Hamayesh transportation, banks, invest- and industrial phenomena and tivity in 2012 and in 2015 will ment institutions and funds, transfer of technology. Partici- hold its fourth international Pars under the insurance, businessmen, etc. pation in exhibitions would mines and mining exhibition title EXPO PARS result in display of capabili- in Tehran together with a con- Who Should Inspect the ties of different production ference on investment oppor- annually holds Exhibition? units and corporations and tunities in mines and mining the largest They include govern- provide a proper ground for industries of Iran, from Sep- ment authorities active in the presence in new markets. This tember 29 to October 1. Pres- exhibition of mines, industry and trade sec- group has organized different ence of government officials mines and mining tor, mining sector activists, foreign exhibitions in the field and possibility of direct (face students, engineers, techni- of rail industry and related in- to face) negotiations with industry of Iran cians, researches, entrepre- dustries, fisheries, aquaculture relevant officials and major neurs active in expanded and related industries, child Iranian companies are among stands at this exhibition. mines, mining industries and and adolescent entertainment, programs of the exhibition. Meanwhile, companies whose downstream products. Also, watches and jewelry, culture products and services are used all traders, insurance compa- and art annually in Iran. Who Should Be Present in this grand sector are pro- nies, banks, investment and Arka Hamayesh Pars at the Exhibition? vided with a great opportunity investing funds, intermediate under the title EXPO PARS All producers of miner- to have stands at this exhibi- and final consumers of related annually holds the largest ex- als, mining industries and, tion. Examples can be cited products and other interested hibition of mines and mining intermediate mine and min- in this regard: safety and en- people. Organizer Address: industry of Iran along with all ing products can set up their vironmental products; capital 4th Floor, No. 148, Beheshti St, Tehran- Iran Tel: +98(21)88548845-9 Fax: +98(21)88528879 46 IRAN INTERNATIONAL, June 2015 www.expopars.com / www.minex.ir IMIDRO Exclusive Health, Safety and Environment ohammad Kazem ing the decisions progress in these units. With Nouri, Director of Following up detailed regard to the planning made MHealth, Safety and reports on investigations into and completion of under con- Environment of IMIDRO, severe fatal incidents leading struction infrastructures as responded to our questions to death and reporting them to well as support of the manag- about the status of health in the senior management of the ers and the personnel busy in the mine and mining industry organization the safety and health sector of Iran. Organizing short-term we expect this improvement The following is the full and medium-term training to constantly continue up to text of the interview: courses in different fields of reaching its real position. This HSE shows the priority of main- What is the health and Offering expert advice taining health and safety of safety status of mine and to units and companies individuals over other activi- mining industry in Iran? ties and will lead to effective Through the policies that improvement in cooperation have been adopted for the Companies and in other sections for multilat- subordinate units of IMIDRO units affiliated to eral participation and closer and the supervision conducted supervision. over implementation of HSE the organization In addition to units un- requirements, there has been through der coverage, measures have significant improvement in also been taken in support of HSE situation in the mine and supervision the private sector such as the mining industries in recent and planning plan for promotion of safety years. The most important of coal mines, which has been cases that the organization has have been designed in a number of stages made mandatory in subordi- equipped with in the first step of which it is nate units are as follows: looking for maintenance of Developing HSE a consolidated self-rescue and gasometer structure structure with which are among the require- Compiling ments of these mines. environmental, safety and regard to HSE Regarding the second health professional targets before being part of the question relat- and their announcement professional health and HSE requirements in accidents Inspection and super- tion time ing to the recommendations on annual basis safety management contracts Formation of Technical vision together with the an- Mandating plans to ac- transferred to the concerning improvement of Compilation of annual systems such as OHSAS Providing Committee and Health nouncement of the require- quire HSE Plan from the con- private sector. health and safety in the mine plans for realization of 18001 infrastructures Protection Committee ment related to the reduction tractors and mineral industries, atten- targets Creating comprehensive Announcing planning Formation of Traffic of incidents and occupational Holding coordination tion to the following points Reporting progress of information system and real progress of HSE Committee diseases and constant supervi- meetings with HSE managers Reports show that im- will be helpful: programs for managing key sections of development Examining occupational sion over their implementation and representatives of major plementation of the above- Companies and units Managing characteristics of HSE projects medicine Regular meetings with companies affiliated to the or- mentioned cases has always affiliated to the organization subcontractors (making performance Including HSE Preventing ill health HSE company managers ganization registered qualitative and through supervision and plan- receipt and supervision Demanding HSE performance in the overall for examining causes of Carrying out research quantitative growth and safety ning have been equipped with over HSE plan mandatory) specifications from performance of affiliated In addition, some cases incidents and preventing their projects in the field of HSE and health measures such as a consolidated structure with Carrying out VIP visits requirement and companies are implemented in accor- recurrence Participating in ses- coefficients of severity and regard to HSE before being in HSE affairs technological suppliers Registration and record dance with requirement. They Designing HSE orga- sions on decision-making over frequency of the incidents transferred to the private sec- Establishing Paying attention to legal of all work-related are: nizational structure for opera- relevant issues and influenc- show there has been constant tor. They have been consis-

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tently committed to reporting boundaries of rivers by erect- and had good communication ing retaining walls, recon- in meetings with and inspec- struction, rehabilitation and tion of other units. After trans- repair of mines fer of these units, occasionally it has been noticed that new What is the impact owners of the units were de- of environmental rules on prived of proper structure for mineral activities? Is there supporting the HSE section is a need to revise these and there are concerns over regulations? continuation of activities of Environmental rules these units. We hereby recom- and regulations have had im- mend that while developing portant and satisfactory ef- and strengthening concentrat- fects on mining activities and ed HSE management in hold- have been able to reduce to a ing companies and institutions noticeable degree, the nega- of transferred units, the role tive consequences caused by of the organization as the cus- extraction and processing of todian of the mine and min- mineral substances. ing industries sector becomes Existing laws and regula- greater in supervision over tions, in some cases, require these units. amendment, updating and re- Given that the activi- vision, including: ties of mine and mining indus- Environmental condi- tries are among high risk and tions of mineral activities (Ar- difficult jobs, and in addition ticle 2) in which case it is nec- with regard to the specific essary to amend and review type of activity of these units the agreement between the which makes them distinc- Ministry of Industry, Mines tive of other industrial and and Trade and the Department production activities, both the of Environment (DoE) with academic and administrative regard to the conditions pres- areas should be strengthened ent in the country so that the in this regard. Departments challenges and conflicts cre- and organizations supervising ated would be removed. over safety and health such as Note 1 of Article 38 labor departments and health of the law on value added tax centers should, in addition to has drawbacks to the effect strengthening their scientific that pollution duties which and supervision capabilities, should be spent on improve- have further productive inter- ment of environmental per- action with mines and mineral formance and cleanup are industries. Joint meetings of spent on issues such as devel- these two supervision institu- opment budgets of munici- tions and compilation of com- palities with jurisdiction over mon regulations can lead to the pollutant unit. On this ba- further improvement in the sis, the duties paid are in no field of occupational health their own activities. To strengthen capabilities of ronment? Are measures tak- pastures due to road building quality of surface and under- waste management, installa- way spent on controlling the and safety. In academic cen- In spite of various rules contracting companies and en to control such effects? and lodging, etc.). Generally, ground water, soil pollution, tion of control facilities and pollutants and improving enters in proportion with the re- and regulations in the field obliging them to create HSE Mining operations are major environmental aspects air pollution due to the release equipment to prevent dust vironmental performance of quirement of mine and mining of contractors’ activity, un- structure and more efficient highly potential for creating all of overall mine operations in- of dust caused by stone crush- emissions (such as the loca- production units. On the other industries safety and health fortunately in some cases it management of health and kinds of environmental degra- clude the following cases: er, traffic of vehicles, explo- tion of iron ore crushing, etc.), hand, recipients of these du- courses relevant to engineer- has been noticed that private safety issues by using special- dation and pollution and these Topographic changes sion and removal of tailings. the establishment of the ISO ties are reluctant to exclude ing fields such as mine and contractors who are active in ist health and safety staff is changes are in the two forms of the area, effects on vegeta- Measures taken in order 14001 environment manage- names of the units from the metallurgy should become the field of mine and mining among important issues that of direct (production of min- tion, effects on animals (abor- to control the negative conse- ment system, systemization list of pollutant industries mandatory and the course top- industries are devoid of the calls for proper mechanisms. eral tailings, mineral wastes, tion and leaving of the habitat) quences of mining activities of fuel tanks, filtering and which in some cases cause ics should be reviewed in or- required expertise and for this dust and so on) and indirect in case of explosions without are as follows: systematic disposal of mine undue social pressures on in- der to enable the graduates of reason do not pay much atten- What are the effects of (production of urban waste- blasting plan, death of animals Environmental impact waste, construction and devel- dustries and affect competi- these courses to cooperate and tion to observing health and Iran’s mine and mining in- water, air pollution caused by as a result of drinking acidic assessment (EIA) studies, the opment of treed green space, tive and clean production. manage issues in the field of safety rules and regulations. dustries sector on the envi- motor traffic, degradation of drainage water, effect on the construction of tailings dams, observing the qualitative

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Chemistry Lab.

Chemistry division Iran Mineral Processing provides a comprehensive chemical analysis on: rocks, geochemical samples, ore, tailing, industrial minerals, Research Center (IMPRC) water, waste waters and environmental samples. Some of equipments in this division are: ICP-OES, AAS (Flame, Graphite furnace, Cold vapor), WD-XRF, ,CS analyzer.

Environmental and Occupational Health Lab.

This division provide a full range of environmental analytical testing services, specializing in soil, sediment, cessing all type of minerals, and collect all engineering water (raw, waste, drinking, metals, non-metals, precious parameters. The main catchment, recycled, brine), minerals and coal. Major laboratories for leachates, dust, air (indoor, providing batch tests and intention of stack, ambient), gas, biota, Activities of Divisions: flow sheet development for IMPRC is to industrial hygiene, and Mineral Processing different projects and clients radiochemistry analysis. (Pilot & Lab.) includes: sample preparation, overcome such Some of equipments in this bond laboratory, classifica- problems as well division are: HPLC, GC-MS, Pilot services are pro- tion, gravity separation, mag- as expanding GC, FT-IR. a pilot plant of up to 2t/h ca- various types of mineral de- Undertaking industrial vide in 8000 m2 open space netic separation, electrostatic All laboratories are sup- pacity. IMPRC offers a very posits in Iran, yet mines and research on minerals and pro- with all infrastructure avail- separation, flotation, hydro- the processing ported by full sample prepa- broad range of services for mining industries section is viding technical services to able for setting up tested flow metallurgy, pyrometallurgy, industry both ration and decomposition mining company including; faced with many problems mining industry and associ- sheets in laboratory. After filtration, special projects. facilities for all kinds of sam- geochemical, ore, concen- such as; limited numbers and ated economic sectors. scale up the lines will be set in quality and ples, even bulk samples. Lab- trate, tailing, soil, rocks and low recovery in mineral pro- Carrying out indus- up and process run continu- Mineralogy Lab. quantity level oratories are fully equipped sediments chemical analysis; cessing plants, huge wastes trial research on minerals to ously in order to optimize with traditional and modern microscopic and instrumental production, loss of low grade convert row materials to pro- analytical instrument. (XRD, SEM, EPMA, DTA- ore, outdated technology, etc. cessed are supply for industry Mineralogy division TGA) mineralogical servic- The main intention of IMPRC via lab and bench scale meth- provides a comprehensive es; environmental analyti- is to overcome such problems ods, pilot test and preparation mineralogical investigation cal testing of soil, sediment, as well as expanding the proof industrial flow sheet for on rocks, ore, industrial minerals and mineral processing Sh. Siasi-rad, Supervisor of IMPRC water (raw, waste, drinking, cessing industry both in qual- different types of metal and catchment, recycled, saline, ity and quantity level with the non metal minerals. products. IMPRC has an in- ran Mineral process- product), leachates, dust, air latest equipments in chemis- Providing lab services tegrated approach using other ing Research Center (indoor, stack, ambient), gas, try, mineralogy, processing in all field of mineral techniques such as scanning (IMPRC) is located in biota and industrial hygiene; and environment technology, industry. electron microscopy (SEM), I electron probe micro-ana- Kavosh research complex, and physical, physico-chemi- modern pilot facility in ad- Creating specialized Address: IMPRC, 60Km west of Tehran in cal and chemical mineral pro- dition to expertise, IMPRC clinic for mines and mining lyzer (EPMA) and thermal analysis (DSC, DTA, TGA) Kavosh Research Town, Karaj-Qazvin free way. cessing service in laboratory is ready to provide high industries, offering consul- Kavosh Blv., 9Km Qazvin/Karaj IMPRC is a world bench and pilot scale. standard services to mining tancy services and problem to provide a clear understanding of the mineralogi- Freeway, Iran. class mineral processing industries of the country the solving to industries and in- Tel: 00982692108361-71 company with four major The Necessity of IMPRC region(Middle East). dividuals. cal characteristics of samples from exploration program up Fax: 0098 2692108360 divisions including mineral- Establishment Considering variety of www.imprc.ir to problem solving in mineral ogy, chemistry, environment The Objective of IMPRC minerals, activities of center Email:[email protected] and mineral processing with There are numerous and is almost associated to pro- processing plant operation.

52 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 53 IMIDRO Exclusive

ed in exploration of Gol Gohar as compared to other countries Mine. Parallel with the growth Today, using of the region such as India and of steel industry, exploration Turkey. Although we stand in Mining Differences in of coal mines developed. After smart drilling a relatively good ranking in the steel industry, exploration systems, equipped the world with regard to the activities started in copper in- production of some mineral dustry field in the country with with navigation substances, the potential the the exploration of the large system, in surface country has in terms of re- Iran and the World copper mine of Sarcheshmeh serves and engineering capa- in 1350s (1970s). The Na- and underground bility is much higher. a concession to British Baron tional Iranian Copper Indus- mines has resulted Generally, mining in ev- Julius De Reuter. Any compa- tries Company was founded ery country can be compared ny in possession of a mine was in 1355 (1976-1977), and all in increased with other countries through forced to sell it to the Reuter the copper mines activities accuracy in the two factors of (science and company at the current price. in the country were granted technology) and (equipment This issue faced massive pop- to this company. Moreover, the excavation and machinery). Growth of ular protests and the idea was Iran’s aluminum industry operations. mining activities will be dam- ultimately revoked. was born with the opening of aged wherever there is a defi- In the lunar hejira year Iralco plant in Arak in 1351 ciency in one of these factors. 1298, Mokhber ud-Dolleh, (1972-1973) and subsequently In the recent years Iran’s the then minister of science, Al-Mahdi Aluminum plant mining sector has been some- selected a number of min- was established in the south- how lagging behind the global ing engineers and dispatched ern Persian Gulf port city of community in terms of tech- Dr. Bahram Shakouri, Managing Director of Mobin them to different parts of the Bandar Abbas. The alumina nology and this has been no- Mining and Construction Company country to identify mines. required by these factories is ticeable in different mining This was a noteworthy mea- supplied by Jajarm mine. operations ranging from ex- lthough mining in sure and resulted in the boom The foundation was laid ploration to extraction and Iran has a history of mine and mining and sub- for production of lead and zinc processing and this, in its turn, Aof 7,000 years, the sequently since 1303 (Lunar industries in the modern time has resulted in an increase in country stands among the Hejira), mines were rented by by issuing a permit for An- costs and reduction of effi- emerging countries in terms people and public activities in gouran mine in 1301 (1922- ciency and productivity. of mining sciences due to the the mines field expanded. In 1923)). Angouran Lead and progress of sciences since de- 1307 (lunar Hejira) and upon Zinc Association managed to 1. Exploration velopments of the Industrial the request of the Imperial obtain operation permit for its With regard to the topic Revolution in Europe. Bank of Iran, the concession mine in 1332 (1953-1954) and of exploration, since there are During the Qajar era, for exploitation of all mines in subsequently in the ensuing numerous uncertainties in the extraction of mines took a dif- Iran was granted to a British years, different companies ex- mine sector, the importance of ferent direction. During the company called Persian Min- ploited the mine. Other mines exploration section as the first premiership of Mirza Taqi ing Corporation. in the past decades made sat- and the basic part of mining Khan Amir Kabir, extraction In 1312 (Lunar Hejira), isfactory growth in terms of operations seems indisput- of mines became free for Ira- development of urban life mining activities and trans- able. During the past three de- nian nationals and exploita- and the dire need for cement, forming traditional methods cades, exploration techniques tion was tax-free for a period iron, and materials required to modern ones. have made outstanding prog- of five years. After this order, for the construction of railway The 1340s (1960s) can ress so much so that in many exploration of mines achieved tracks, stations, and bridges be referred to as the beginning cases attention of scholars in a significant growth in Iran. demanded that the first ce- of mining activities in Iran the field of identification of Furthermore, establishing ment factory in south of Teh- as at this juncture, collection alloy, shape and dispersion of Dar-al-Fonoon [higher edu- ran go on stream. In early of information through aerial deposits has increased remark- cation institute], Amir Kabir 1340s (1960s), Iran’s National photographs and preparation ably. Although in the recent invited a number of foreign Still Mill Company was estab- of geological maps were seri- years Iranian scientists have mining experts and teachers. lished in order to conduct ex- ously carried out in the coun- taken measures with regard Five mining students enthu- ploration activities on iron ore try. Though this growth was to synchronizing this knowl- siastically started their activi- mines and equip them to meet achieved with a good speed, edge with global criteria, we ties in exploration of mines the steel needs of the country. we failed to move with the have remained backward in after graduation. Exploration activities of this previous speed during the this domain in many cases due Following the return company led to the explora- years of the Iraqi war (1980- to the existing restrictions. from England of Nasser ad- tion of Choghart, Chadorma- 88) and sanctions. The weak- For example, using modern Din Shah in 1292 (Lunar He- lou, Chahgaz and Sechahoun nesses emerged in this respect technologies such as satellite jira), the situation of mines mines. In 1350s (1970s), these pushed the civil society of the waves to conduct geological changed because of granting activities expanded and result- country somehow backward analysis can be pointed out in

54 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 55 IMIDRO Exclusive

this respect. It must be noted Moreover, reference can tions. With respect to plans portation system should not that since our country does be made to restriction on the designed by mining engineers, Today, the exceed 5 km. However, with not possess such satellite fa- purchase of large size drilling locations required for drilling increase in the mine’s depth, cilities, the only way to get devices. One of the basic steps are automatically identified necessity of prevention of such a problem this information is to buy it in mine designing and ma- and the slightest errors would using smart becomes harder. Using mod- from foreign companies. But chinery is the appropriateness not occur in the process. Un- ern transportation methods in most cases we are faced of the mining production with fortunately, application of control systems such as giant lifts for carry- with restrictions for purchas- the diameter of the explosive such systems has not become in monitoring ing tracks and changing trans- ing such data and sometimes ditch. In many mines of the possible in our mines yet. portation system of materials those companies even refuse country, efficiency of excava- There are some weak points in and dispatching such as using conveyor belts to transfer the information. tion operation has reduced and the country’s mines regarding of mining and conveyor bars can largely finally production costs have blast operation, which is one prevent this problem. Employ- 2- Excavation increased due to restriction on of the most important opera- machineries is ing giant loading machineries, With respect to excava- purchasing large size drilling tions in the excavation stage. one of the issues which use continuous mining tion issue, it was not possible machinery or lack of attention Lack of compliance with system, such as draglines, can to purchase many of the pick- in using small diameter drill- global standard criteria of spe- seriously followed administer production process up mining machinery such as ing devices. cial loads in some mines has up in countries from loading stage up to un- dump track and shovel in re- In modern mining, rela- caused high costs in mines’ loading at depots. cent years due to the prevalent tionship among three devices blast operations. The small- known for their If the sanctions are eased restrictions. Under such con- in the open-air mines enjoys a est increase or decrease in the mining activities. and Iranian miners work on ditions, strategies such as buy- specific importance, which is burden, spacing and geometry these types of machineries, it ing second hand devices or de- referred to as the golden tri- of blast holes can play a direct can be said for sure that mining vices of low-price brands have angle of mine’s main machin- role in the blast costs and fi- will experience further boost been considered as a remedy. ery. At the top of the triangle nally in the finished price of in the country once equipped Although this decision has is the loading system and on the mineral. New blast pat- and updated machineries are proven sound or even essen- the two vertexes are the drill- terns and application of safe imported. For example, the tial under certain circumstanc- ing and transportation sys- explosives in mines of the diamond wire cutting system es as a mechanism to adjust tems. The relationship among world countries known for was being used in the con- the adverse effects caused by the vertexes of this triangle is their mining operations play struction stones mine but with the sanctions and other restric- highly important in terms of an effective role in optimum the arrival of chain cutting de- tions, negative consequences capacity and volume in the production. Therefore, efforts vices, instances of which are arising from such a situation mining design. In the mines of are made to implement all available in Iran’s construc- cannot be ignored. At the first the famous mineral rich coun- the feed in the loading sys- tion stone mines, the tradi- glance, increase in produc- tries, the relationship between tem through blast operations, tional excavation method of tion cost is the most obvious these machineries is studied which unfortunately in some construction stones gave way consequence of such solutions carefully and mining design- mines of the country imposes to the modern cutting system because the cost of repair, ers and managers show high high pressure on the loading and this played an important maintenance and deprecia- sensitivity towards the small- system for digging the ground role in production efficiency. tion caused by such low qual- est lack of fitness in the ratios and this would result in de- ity machinery are much more of this triangle. preciation of the device and 3- Processing than the proper machinery. On Today, the necessity of severely reduces production In the subject of process- the other hand, in many cases using smart control systems in efficiency. ing of mining substances, it has been noticed that lack of monitoring and dispatching of Another factor, which is modern technologies have access to different machinery mining machineries is one of paid less attention to in mines come to the help of the min- has caused restriction of tech- the issues seriously followed in Iran, is non-observation of ers in order to enable them to nical options. For example, up in countries known for regulations regarding match- raise the alloy in the minerals this issue has caused violation their mining activities. Some ing machineries with extrac- and make them presentable in of the most basic transporta- of these countries are moving tion conditions of the mine the value cycle of minerals. tion rules in open air mines. towards elimination of the op- so that using track and shovel Obviously, in the value cycle Based on the existing rules erator from the transportation system is the only mechanism of minerals perhaps it can be in each loading cycle, 3 to 4 cycle and replacement of di- for transportation in open-air said that processing of some times in the loading operation rect extraction of minerals. No mines. This is while today in minerals in the country is the the shovel should fill the dump serious step has been taken in reputable mining companies, missing link to the extent that track system but this has not Iran in this regard so far. experts are looking for sec- in many cases it has caused been possible due to the im- Today, using smart drill- ondary mechanisms to reduce excavation of some mineral proper distribution of the ma- ing systems, equipped with transportation costs in open- resources not to be welcomed. chinery on the basis of volume navigation system, in surface air mines. On the other hand, many and dimensions and is directly and underground mines has According to interna- minerals, which were not ca- effective in reducing the pro- resulted in increased accu- tional standards, the optimum pable of being excavated, can duction efficiency. racy in the excavation opera- distance of dump tracks trans- be extracted by using on-the-

56 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 57 IMIDRO Exclusive

spot processing. Using this risks such as collapse of stairs been transferred to the private technical knowledge and pro- method today, countries which in surface mines, collapse of sector in recent years. How- Conducting vision of legal and contrac- are well known for mining go the wall and ceiling in un- ever, it seems that the policies tual conditions for the general for excavation of reserves derground mines, leakage of adopted in this sector do not mapping transfer of the mining sector with low volume and with the water in mineral structures, enjoy the required efficiency. operations to the private companies, it help of modern excavation control of possible seams and One of the issues raised seems that increased output in methods such as solution min- cracks of the blocs, etc. Most in this regard is the mechanism for volume, the mining field would be real- ing extract the smallest or the large mines in the world are of transferring operations to topographic ized through such policies. narrowest reserves. equipped with such systems. the contractor. It seems that The last topic that is im- The on-the-spot leaching In the Iranian mines, this policy has sometimes views and portant to be mentioned is techniques are among modern it has been hardly observed caused confrontation between implementation the issue of training. During processing methods which that a mine would be fully the private and public sec- recent years, training in the have become popular in our equipped with precision tools tors in terms of profit. Simply of the designed field of mining has been kind country for the secondary ex- system to control such param- put, it can be said that under points in the of ignored by officials to the traction of copper stones in eters; and the result is collapse such a situation the contractor point that the educational and recent years. of the wall in the lead and zinc is looking for more volume mine has always research institute of the Min- In continuation, we re- mines of Angouran. as the same one-way policy been one of the istry of Industry and Mines, view complementary opera- Today, direct dependence meets his interests. Yet, on the which was a venue for free tions in mines, which have of mining operations on the other hand, the employer is af- cases seriously education in mining field, was witnessed good growth in the infrastructures relevant to ter providing the plant’s feed considered in practically dissolved after be- past few years and resulted in transportation, including rail- and takes into consideration ing transferred to other sectors increasing production efficien- ways, roads and ports is taken the quality and quantity of the mining. and organizations. Only Ira- cy of mines. Instances of such for granted. Direct influence substance received from the nian Mining Engineering Or- operations include mapping, of transportation cost of min- private sector. ganization holds specialized application of precision tools erals out of the mine’s range is Although under such courses for mining experts by in mines and measurement and very high on the finished price circumstances, the regulatory charging them. studies of stone mechanics. of the product and even ex- organizations play the role of Weak relationship be- Conducting mapping ceeds the price of the mineral controlling and coordinating tween mines and universities operations for volume, topo- substance. between the employer and the in the country and absence of graphic views and implemen- In countries well known contractor and eventually are constant cooperation to keep tation of the designed points in in the world for mining activi- after reaching a unified objec- the mines updated with min- the mine has always been one ties great attention is paid to tive, finally it seems that such ing technologies of the world of the cases seriously consid- this issue so that caretakers of an approach in many cases has and proximity of academic ered in mining. affairs have taken measures to caused interrupted work and community with mining op- Today in large mines of establish and equip the men- wasted time and energy. erations have led to the fact the world, smart mapping sys- tioned infrastructures either Given that mining opera- that training in its real sense tem with high speed is used through the public or private tions from the beginning up to has failed to educate technical in order to make it possible sectors. Unfortunately, in the end is a unified operation experts enjoying high knowl- to adapt the volume related spite of the emphasis made so and achieving the desired re- edge and some mines in the to the excavation design with far in the country, we have not sult only depends on coordi- country remain deprived of the volume produced. In this reached the desired standards nation among different mining having specialized forces. On regard, reference can be made yet. For example, with regard stages, it seems that transfer of the other hand, one can refer to utilization in mines of the to the topic of establishment this section generally from ex- to the need for developing mo- three-dimensional scanners. of railways, if the ratio of the ploration to delivery of min- tivation and tendency for par- Thanks to the existence of this length of the railway lines and eral substance to the plant will ticipation of other academic system, information can be the length of the roads are bring about a more desirable courses in the issue of mining. gathered in moment concern- compared with the areas in result. As we know, the knowledge ing the volume moved from Turkey, India and Iran, we will In this regard, refer- of mining engineering has different parts of the mine find out that railways in- Tur ence can be made to the per- taken advantage of different with different alloys and also key are 1.5%, in India 2% and formance of large mining academic branches due to its compliance of the information in Iran 0.7% and the length of companies such as Rio Tint vastness. with the existing plans, either the roads is 54.48% in Turkey, and BHP Billiton. In these Under such conditions, it the block model and excava- 153.64% in India and only companies, feasibility stud- seems that mines can become tion plans. 5.19% in Iran, respectively. ies for mining operations are a proper ground for other sci- Application of precision An additional comple- conducted by experts from ences and scientists. For exam- measurement tools in mines mentary topic is policy mak- the very beginning and this ple, referring to the activities to control safety and stone ing and contract sections. In process is continued until it carried out at universities out- mechanics parameters plays line with privatization policy reaches a conclusion. side Iran, we will realize that an important role in prevent- of government organizations, Although reaching this Continued on page 83 ing occurrence of potential many mining activities have stage requires transfer of

58 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 59 IMIDRO Exclusive

The world today, has improve marginal profits of its a steel production of nearly steel manufacturers. Among 1650 million tons. China, measures taken by China in with a production rate of ap- its 5-year plan was the order Steel and proximately 815 million tons, for the merger of steel compa- is holding in hand almost 50% nies to reach the highest pos- of the world steel produc- sible capacity. While reducing tion, which compared to the joint costs, this merger would previous year, shows about 2 increase the bargaining power percent growth. The growth (of producers) against suppli- the Role rate of China’s steel producers including iron ore dealers. tion, like that of the rest of the Among other plans China has world, is on the decline. So it mention can be made of the can be said that the decline in following: global growth rate originates Reducing the price of from the declining trend in maritime freight, especially in It Plays China. stone supply from Brazil and Last year, China’s steel Australia; consumption was about 710 Expanding exploration million tons, which compared projects in central and western to its preceding year, had a parts of China in order to re- growth of 2.5%. The coun- duce dependence on maritime Globally try’s steel exports amount to transportation of iron ore; over 90 million tons. Based Lowering the cost of goods transfer growth in countries such as The idea of Brazil, Russia, India and espe- China’s measures and its cially China (BRIC countries). MITSK Group reduction of steel consump- Since 2001, this industry has was raised when tion had an immediate impact simultaneously faced dramat- on iron ore price plunging it to ic prosperity and recession, the world, after the lowest level in the past few which have led to an average acquaintance years. growth rate of 6% in produc- The structure of the steel tion and 5.5% in consump- with BRIC industry has slightly changed tion. Like any other industry, countries, needed during the past century due to growth of this industry faced the transfer of state ownership many challenges in the wake more newfound to private ownership. Within of the 2008 financial crisis and countries to pitch the past few decades, steel despite improvement of steel plants had higher marginal industries after the crisis, the in to secure the profits as they had both the Ali Bakhtiari Ghale, IMIDRO recent debt crisis of euro-zone global economic bargaining power with the raw governments has created a materials suppliers and (they ll throughout history, relatively high uncertainty in growth. themselves) determined the steel has been a well- this market. market price for steel distribu- Aknown product and The idea of MITSK on the reviews and forecasts tors and customers. However, the most consumed metal. Al- Group was raised when the made by experts, China is to since 2011, the pricing power though less known today as an world, after acquaintance with see its steel consumption peak has remained mainly in the art, metal work is one of the BRIC countries, needed more in 2016 and the overflow of its hands of raw materials suppli- most ancient achievements newfound countries to pitch in steel to the world will create ers and steel customers. Steel of human being and has been to secure the global economic tension in the market and in manufacturing has turned into turned into a large industry growth. This time the coun- some cases would even inten- a kind of processing raw ma- that runs the wheels of many tries of Malaysia, Indonesia, different. Some developed developed countries through ished cost of the raw materials manufacturers and currently sify occurrence of dumping. terials and is no more consid- other industries. The steel in- Turkey and South Korea had markets had a better-than- joint venture with develop- and the situation has worsened they are not only faced with Therefore, China is the larg- ered the exclusive value creat- dustry has abided by the global to make preparations for the expected performance; while ing countries, steel producers with change of annual con- increasing instability in prices est producer and consumer ing factor. economy and its improvement growth and development of the remaining markets were in the emerging markets are tracts to shorter-term ones of raw materials, but also they of this market and its policies Steel manufacturers is an appropriate indicator of the economy, however their either making efforts to keep expecting the competition to Shortage of supply has are forced to maintain marginal will have a great impact on the should adjust their business economic improvement of efforts were not that suc- going or put on a downward increase to its highest level. left iron ore and coal dealers no profit with regard to fluctuating steel industry. Through its re- models with these changes a region. During the past 15 cessful. While the emerging performance. Due to the entry Steel manufacturers believe choice but to reschedule their demands; an aspect that has cent measures, China has tried so that the risk of raw mate- years, this industry has grown markets are growing, their of the steel-producing compa- that the market instability has pricing mechanisms. This has significantly affected revenues to reduce the finished cost, in- rials prices would be directly dramatically, mainly due to its performance is remarkably nies which are related to the been mainly caused by the fin- entailed challenges for steel of the steel industry. crease competitive power and shifted to consumers and the

60 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 61 IMIDRO Exclusive

risk of fluctuations in market of their products. fied Miyan Roudan (Mesopo- ing plant, that is Isfahan Steel arm known as the National rea, and so on. Unlike Iran, increase in consumption mar- demands would go to raw ma- The world Manufacturers will be tamia) as a location in which Company (Zob Ahan-e Isfa- Iranian Steel Company. Many the mentioned industrial states ket. Iran’s steel production by terials suppliers. Companies today, has a faced with huge challenges steel, as an art and industry, han) was created. believe that in the absence of should supply their needed the end of 1350s (1970s) was that ignore facilitating poli- both from environmental was originated. There is no In the aftermath of the oil, the pillars of Iran econo- iron ore and energy for steel approximately 575,000 tons cies like productivity expan- steel production point of view and lowering doubt today that many man- victory of the 1979 Islamic my will be founded on steel production through imports. per year. The figure reached sion and lowering finished of nearly 1650 energy consumption as part of made crafts and techniques Revolution in Iran, the Na- and that’s why steel industry is Therefore, in the face of glob- 1.584 million tons at the end costs are doomed. Meanwhile, production cost. have their roots derived from tional Iranian Steel Com- a pioneering industry in Iran. al changes in the price of iron of 1360s (1980s) and amount- it should be noted that lack of million tons. Controlling the amount this region. Based on the ex- pany was established in 1358 In order to fulfill this ore, coal, oil and gas they are ed to 6.614 million tons at the operational speed has affected China, with a of greenhouse gases emission isting evidence, roots of this (1979-1980) with the merger goal, we need to overcome the more vulnerable than Iran as end of 1370s (1990s). At the the industry and resulted in per ton steel, along with the art and industry in Iran date of the National Iranian Steel present obstacles and prob- far as steel industry is con- end of 1380s (2000s), Iran creation of surplus capacity at production rate energy supply cost are among back to 7000 years ago in the Mill and the National Iranian lems of the industry and the cerned. produced 12.719 million tons current levels so that approxi- of approximately the issues the steel industry fifth millennium B.C. Refer- Steel Industries Company, steel markets which can be According to a report of steel annually and in 1392 mately 23% of the world steel has to face. The structure of ences have also been made to which was the sole company done through formulation of released by the World Steel (2013-2014) the volume in- capacity is vacant. 815 million tons, European energy demand for regions such as Neyriz in Fars, in charge of steel in the coun- a comprehensive steel plan by Association, Iran is one of the creased to 15.631million tons. Steel manufacturers with is holding in hand the steel production is in ac- Gol Gohar in Kerman, Meso- try until 1381 (2002-2003). IMIDRO. major manufacturers of steel Iran’s downstream steel an aim of changing their trade almost 50% of cordance with the following potamia, etc. Later, the responsibility of the Due to possession of iron products in the Middle East. industries are highly prone models have considered more figure based on production In Iran, the first step to- steel management was deliv- ore, energy carriers, consumer Iran’s steel production capac- to development. Most of the flexibility in operations, in- the world steel forecasts. wards gaining access to this ered to the Iranian Mines and market, skilled and experi- ity is 21 million tons per year. steel production in Iran is re- creased raw materials produc- production, which industry was taken in 1338 Mining Industries Develop- enced academic workforce, Last year its steel production lated to the housing and con- tion ownership, created higher Steel Industry in Iran (March 21, 1959- March 20, ment and Renovation Organi- rail link, access to water and amounted to 15.631 million struction sector as is most of added value through develop- compared to the 1960) with the formation of zation (IMIDRO). The orga- commercial ports, etc. Iran tons, up by 9% compared consumption, too. Iran’s pro- ment of downstream indus- previous year, The art of steel manu- the National Iranian Steel nization is currently in charge enjoys relatively good advan- with the corresponding period duction capacity of steel prod- tries, introduced more con- facturing in Iran has such a Mill. In 1351 (1972-1973), the of implementing major plans tages for the manufacture of in its preceding year. Iran is ucts is more than 25 million sumer-friendly approaches, shows about 2 long history. Many Western National Iranian Steel Indus- with the goal of steel develop- steel in comparison with some also faced with a 25% vacant tons per year and its produc- alloying as well as innovation percent growth. researchers, historians and tries Company was founded ment such as seven provincial industrial countries such as capacity in steel production, policies in and proper pricing oriental scholars have identi- and the first steel manufactur- projects through its executive Germany, Japan, South Ko- which can be filled through an Continued on page 83

62 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 63 IMIDRO Exclusive Khouzestan Oxin Steel Co.

hat follows is the ally, the company is capable Co. was originally built to could be provided by Oxin as mestics support are taken into text of an inter- A comparison of the production since 2010 until March 20th 2015 of producing plates for heat- manufacture broad-width its nominal capacity reaches account. view with Mr. Aziz ing processes as explained plates for various purposes, 1.050.000 tons. This produc- W 785000 Ghanavati, Managing Direc- below: including large-diameter oil tion capacity serves the cur- How much the prod- tor of Khouzestan Oxin Steel Importantly, the year and gas supply pipes, ship- rent needs of the pipe milling ucts of Khouzestan Oxin 667313 654766 Co. on the achievements and 800000 2014 has witnessed the pro- building industry, defense in- companies, the future needs Steel Co. have restricted future plans of his company: 700000 duction of broad-width plates dustry, industrial and power of the National Iranian Oil imports and how much cur- as per API standards up to a stations steam boilers, high- Company and the National rency have been saved up? Elaborate on the 600000 grade of X 70 for oil and gas pressure tanks, and huge stor- Gas Company. The production capac- performance of Khouzestan 500000 pipes in Khouzestan Oxin age tanks of oil and chemical ity of 1.050.000 tons of 336054 Oxin Steel Company in the 313983 Steel Co. To this end, the liquid. Additionally, bearing How do you evaluate broad-width plates would years following its initial 400000 company managed to meet specific building structures the future of Khouzestan obviate the need for the same operation. 300000 all the technical requirements in mind, the company priori- Oxin Steel Co.? amount of import which sub- In keeping with the of the National Iranian South tized the production of spe- Considering the devel- sequently save up USD 700 growing demand of the na- 200000 67539 Oil Company and the Nation- cial steel plates with unique opment of oil and gas sup- million. Having made the tional industries, Khouzestan 100000 al Gas Company and their mechanical properties--the ply projects, particularly the arrangements in terms of ex- Oxin Steel Co. began oper- subsidiary companies. pulling strength of 1200 N/ South Pars project, and the port and based on the product ating as the first and leading 0 ml2 and yield strength of value-added API broad-width type and industrial demand, manufacturer of broad-width 2010 2011 2012 2013 2014 2015 Khouzestan Oxin Steel 1000 N/ml2 after the heating plates, as well as the produc- Khouzestan Oxin Steel Co. steel plates in the Middle East Co. is among the companies operation. According to the tion of other types of steel started the export of its prod- in 2010. The main activity of having employed advanced latest assessment with regard such as marine grade and ucts in the year 2014 and also this company is to produce Grand technologies; how pressing to the oil and gas projects, heating operation, the future planned to boost it by more unique, high-strength steel Year 1388 1389 1390 1391 1392 1393 Total is the need to develop such three of the national pipe production of the company than 20 percent in the region plates up to 4.5 m in width, Tonnage 67539 336054 313983 667313 654766 785000 2824655 companies in Iran’s steel- milling companies would an- would be presented in a more and Europe. and in various thicknesses in making industry? nually need one million tons positive light, provided that the Middle East. Addition- Khouzestan Oxin Steel of broad-width plates which imports restriction and do-

64 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 65 IMIDRO Exclusive Mobarakeh Steel Co. The Gem of Iranian Industry

electrical appliances and pipe and profile industries. Mobarakeh Steel Com- pany owns several industrial complexes around the country and more than twenty thousand people are working in various parts of the company. Mobarakeh Steel Com- plex, Sangan Steel Complex, Amir Kabir Steel Complex Dr. Sobhani, Managing Director of Kashan, Hormuzgan Steel of Isfahan Mobarakeh Steel Co. Complex, Saba Steel Com- plex and Chaharmahal and sfahan Mobarakeh Steel Bakhtiari Automotive Sheet Company is one of the Complex are among the most Ileading Iranian companies important sections of Mobara- active in the field of produc- keh Steel Company. ing steel sheets. The company, Isfahan Mobarakeh Steel with an aim of playing a pivot- Company which is now one of al role in industrial, economic the largest industrial units of construction of this complex tion in 1 million square meters tion line of the grand plant was rise in demand, the nominal million tons. Products of the pliances, pipe manufacturing, and social developments of the the Islamic Republic of Iran is are unique in the Middle East. and over 500 thousand tons inaugurated by the then presi- capacity increased to 5.4 mil- company include hot and cold pressure tanks, metal light country and improvement of located in an area of 35 square As an example, 18.7 mil- of equipment and machin- dent on 13 January 1994. With lion tons per year. plates and coil, acid washing and heavy equipment and so the level of technology of steel kilometers close to the city of lion cubic meters of grading ery have been installed in the the addition of steel products Iran’s outlook for steel coils, narrow strip and slab on. Products of the company industry, as a global company Mobarakeh, 75 km southwest and over 1.845 thousand cu- complex. of this company to the mar- production by the year 2025 coil which will be produced in are exported to many world produces over 50% of Iran’s of Isfahan. bic meters of concrete work, The first electric arc fur- ket and gradual increase of stands at 55 million tons and accordance with international countries in Europe, North steel consumption for use in Construction operations 1.800 thousand square meters nace of the steel production production up to the nominal plans of the company is to pre- steel standards. Products of America, Far East, Africa and automotive industry, spare for the complex started in the of formwork, and 80 thou- unit of the complex became capacity of 2.4 million tons, a serve a share of 50% in Iran’s Mobarakeh Steel Complex the Persian Gulf countries. parts, heavy and light metal calendar year 1360 (1981- sand tons of reinforcement, operational in the month of major part of the country’s de- production. Therefore, on the meet demands of different Supply and sale of prod- industries, pipes for conduit of 82). Building and technical about 150 thousand tons of Mehr 1370 (September – Oc- mand for this strategic product basis of planning, production industries including automo- ucts of the company in over- fluids, packing, household and activities carried out during steel structure, cover installa- tober 1991) and the produc- was addressed. Then, with the capacity will reach at least 25 tive industry, household ap- seas markets, presentation of

66 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 67 IMIDRO Exclusive

of the ships, steel products upon being produced will be transported to this warehouse through railways and by road in an effort to gradually complete the order of the Yazd Alloy Steel Co. consumer. After completing the consumer’s order and ac- vices, automotive industries, thousand tons within the next cording to the scheduled plan machine manufacturing and one and two years and can be for loading, products will be other special industries. Iran Alloy Steel promising for the production transferred to the dock im- Iran Alloy Steel Com- and supply of about 500 thou- mediately and will be loaded. pany with an annual produc- Company is the sand tons of steel products. All these operations take place tion capacity of 450,000 tons largest producer Beside this and in order to under the supervision of Mo- which is capable of increasing create a balance in the area of barakeh Steel Company and to 600 thousand tons, became of different alloy increasing production of alloy the observer based in the city operational in the city of Yazd and special steel products extensive measures in order to provide maximum in the calendar year 1378 have been taken with regard to assurance on the health and (1999-2000). Different long in Iran and the provision of complementary safety of product for the con- products such as rods, strips, Middle East. equipment and finishing. sumer. squares, etc. are included in In line with the imple- Mobarakeh Steel Com- the production range of the mentation of the second phase pany which is rightly called eyedAli Azarbadegan, company. How much investment and in an effort to establish a ‘the gem of Iranian indus- Managing Director of has been made since the be- steel production factory with the company at global mar- on commercial cooperation. try,’ is ready to invite credit- SYazd Alloy Steel Com- What are IASCO plans ginning and how much is re- a capacity of 700 thousand kets, development of new With regard to the ap- able foreign investors for the pany (IASCO) in an interview for development? lated to the second phase of tons beside the plant, a con- technologies and knowledge proach of Mobarakeh Steel development of steel chain replied to the questions of our Currently domestic in- development? tract was signed with Spain’s of steel industry through Company which aims at fur- in Iran, especially high-tech reporter on development pro- dustries are mainly tilted to- The main part of the in- Sarralle Company which took production of special ex- ther satisfaction of consumers products in order to meet the grams and marketing activities wards industries such as auto vestment has been made in the into effect on 19 September port products, enhancing the and timely delivery of products needs of domestic market as outside the country. Details of making, machine manufactur- first phase and the company’s 2013 with the opening of cred- company’s reputation and and protection of commodities well as regional and interna- the interview are as follows: ing, rail, oil and gas and simi- development in recent years it documents. promoting its trademark, pos- bought by the purchasers es- tional demands. lar cases which consume low (Phase 2) for equipping the Conclusion of contract sibility to attract foreign fi- pecially export purchasers, a Meanwhile, we are pre- Would you please intro- and medium alloy steel which steel manufacturing section and beginning of executive nancial resources and obtain- special site has been designed pared to form an international duce Yazd Alloy Steel and are being produced by our with an arc and a cauldron activities of subsidiary units ing hard currency are among and built in Special Economic consortium in Iran or other elaborate on the potentials company. furnace, four-branch casting such as construction of oxy- achievements of the export Zone of Bandar Abbas which world countries for the estab- of the company? Although consumption line and the required subsid- gen factory, irrigation, the department. is the largest and most impor- lishment of steel industry fac- Iran Alloy Steel Com- of tool and stainless steel iary installation, including air main electricity post, imple- Selling products of Mo- tant port in the country for tories and its chain. Today the pany is the largest producer which are indicators of high separation, etc. together with mentation of foundation and barakeh Steel Company is the stockpile and shipment of need for the presence of large of different alloy and special alloy steel is less compared projects that have been imple- industrial sheds are being based on the order of the con- products through this port city multinational companies in steel in Iran and the Middle to low alloy steel, however mented for the completion of followed up and the project sumer due to the high diver- to the remotest areas of the Iran’s steel industry and also East. We are one of the most the company has been able to other lines in some other units has so far made a progress of sity of products and extensive world. The importance of this presence Iran’s large compa- modern alloy steel plants in constantly take positive steps comprise about 20% of the in- 15.54%. scope of technical specifica- eas and offering prices by the warehouse is known from the nies beside other multination- the world. The steel manu- in the field of production and vestment in Phase 1. Meanwhile, in order to tions. For this reason, after active consumers. Consumers fact that Isfahan Mobarakeh al companies in line with fu- facturing, rolling of heavy supply of chromite stainless supply the metal charge of the reaching the required agree- will be informed of verified Steel Company has exported ture developments is tangible metal levels, rolling of light steel as well as cold and warm What are IASCO plans plant implementation of the ments concerning the price prices on the basis of FOB and major part of its products to for the two sides. metal levels, thermal and application steel. to develop its market? project for processing scraps and product details, the or- basic quality and in case of ap- America and Europe through completion operations of the Among the most im- Iran Alloy Steel Compa- was put on the agenda and a der will be registered in the proval of the proposed prices this warehouse and via inter- company are equipped with portant high alloy steel of ny started with an initial out- contract for manufacture of system for the delivery on a products will be exported for national waters on FOB basis. the most advanced machines the company reference can put of 10,000 tons annually in shredder was concluded with specific date. With regard to the consumers. Meanwhile, due to the targets and enjoy the highest level be made to 1.2712, 1.2740, the calendar year 1378 (1999). COMES Company of Germa- geographical expansion and Products will be sold in of Mobarakeh Steel Company of technical know-how in the 1.2344, 1.2367, 1.4021, However, it increased to 300 ny on 7 July 2014 and the de- diversity of customers and in export markets only to legal for the delivery of its prod- world. This enables produc- 1.4057, 1.2080 and 1.2379 thousand tons last year in line vice has been manufactured. foreign companies which have tion of alloy and special steel steel grades. Also, I am proud with our product and market Other activities related to the line with better market man- ucts to its export customers Isfahan Mobarakeh Steel Co. agement, exports have been been registered outside the through CFR method, the im- with the highest quality in to announce that export of development activities. construction and purchase of divided into the two sections: country. On this basis, com- portance of this issue becomes Tel: 031-527-33333 compliance with the interna- high alloy products of this Meanwhile, with the ini- internal equipment, imple- 1. the US, the Far East and Eu- panies which are interested in more clear. 031-527-32200 tional standards. Products of company to Germany (which tiation of under moon devel- mentation of the foundation of rope, and 2. the Middle East. buying from Mobarakeh Steel Considering the distance 031-333-25325 our company are vastly used is the origin of production of opment phase, a new capacity equipment and the civil sec- Sale of the export prod- Company should send the re- of 800 km between the cen- Fax: 031-333-24324 in oil, gas and petrochemical these types of steel) is indica- was added to the steel manu- tion are continuing and with ucts takes place within the quired documents to the ex- tral plant and Bandar Abbas 031-333-20018 industries, power plants, tool tive of dynamism and high facturing of the company. This regard to the activities com- framework of announcement port management after send- and in order to minimize the http://www.msc.ir manufacturing, manufacture quality of these products. will raise the capacity of mol- pleted the project has made a of demand from different ar- ing their initial request based time for berthing and loading of medical and surgical de- ten steel output to about 600 progress of 67%.

68 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 69 huzestan Steel are active. Company (KSC) The billet ingots are Kis the largest produced in 100 and 130 mm supplier of steel ingots in dimensions and the bloom the Islamic Republic of Iran. Khuzestan Steel ingots in 15 and 200 mm It acquired the first rank in dimensions. organizational excellence in The slab ingots are 1392 (2013-2014) and the produced in 1250 to 800 with first rank in human resource a thickness of 195 to 245 mm excellence in 1391 (2012 – Company Pioneer and up to the length of 10 2013). With more than three thousand mm. decades of production and The bloom, billet and localization, the company has slab ingots after sound gained an outstanding and in Development of quality evaluation on the unique position in expansion basis of world standards of activities relevant to the will be sent to domestic and development of steel industry foreign markets. in the country. The baking and lime Construction of the first Iran Steel Industry granulation factory, the direct reduction furnace in electrical conversion post, Khuzestan Steel Company the industrial water and in Ahvaz in 1380 (2001- wastewater treatment plants 2002) resulted in global reg- thousand tons per year due years later, in 1387 (2008 temperature of 1550 degrees. and three oxygen units are istration of the license for to the efforts of the staff of – 2009) the second direct In this process, the impurities among effective units in the first unique Iranian - pat this giant complex and with reduction Zamzam factory are extracted from the Khuzestan Steel Company. tern in production of sponge the required improvement was built with a capacity of furnace and the molten steel iron. Following this success, operations. one million tons per year by with high purity is discharged steel projects in the country, The complex and global Khuzestan Steel Company. in a special ladle and remains including provincial steel technology of direct reduction This massive progress in the ladle furnace under projects were implemented of iron was examined in was a magnificent trans- the secondary metallurgy on the same basis. In addi- 2014) in comparison with anniversary of the victory of Khuzestan Steel Com- Khuzestan Steel Company formation in production of operations before being tion to this major engineering 1386 (2007 – 2008) was more the Islamic Revolution, the pany comprises different sec- for the first time with an aim sponge iron and a proof of forwarded to the casting unit. project, construction of fully than 60% and the company KSC output amounts to three tions of raw materials, direct of localization. proficiency of Iranian line The ladle furnaces 3 and Iranian ladle furnace, build- with a share of 25% of the to- million tons of steel ingots. reduction and steelmaking. KSC experts as pioneers of thinking and experience 4 are the leading examples ing of the first ladle furnace tal crude steel production, is Khuzestan Steel Com- In the raw materials in the field of localization in in the field of steel industry of the progress of Khuzestan transformer and manufacture one of the industrial poles in pany, in line with support sector there are accumulation 1380 (2001-2002) succeeded technology. Steel Company in the field of of heavy electrical machiner- the Fifth Development Plan for national production and and exploitation units and in design and construction Sponge iron is the localization of technology. ies and equipment of foundry and in the 2025 Vision Plan. maintenance of raw materials two pelletizing plants with of Zamzam factory by copy second middle steel product The first Iranian ladle furnace machines and scores of other While the initial pro- for rolling plants inside the a total capacity of five modeling the Midrex method which is melted and refined was designed, built and important projects that reduction capacity of the plant county, has made its utmost million tons annually. This and making necessary modi- in the electric arc steelmaking became operational in 1384 Add: Km 10 Ahwaz-Bandar sulted in domestic manufac- was 1.5 million tons with six efforts and offered most of section by receiving the raw fications in it. furnaces. The steelmaking (2005 – 2006) thanks to the Imam Khomeini Road ture of over eight thousands electric arc furnaces, with the its products to the domestic materials produces iron ore Zamzam plant was a sector has six 180-ton efforts of the competent Post Code:61788-13111 same number of furnaces and market. Meanwhile, with the pellets needed by the direct important equipment of steel fruit of creativity of Iranian electric arc furnaces for experts at KSC. Ahwaz- Iran processing all underline the under the same roof, in the successful dispatch of export reduction units. engineers and researchers the molten steel production The molten product pre- important national role this form of three development consignments of high quality The second sector is who at that time had built and four ladle furnaces for pared in accordance with the Tel:+98-61-32908000 (14 Lines) knowledge-based complex phases, the amount of annual ingots the company has expe- the direct reduction unit. the biggest direct reduction the secondary metallurgy customer’s order will enter plays in the steel industry of production of KSC in 1392 rienced a successful presence Khuzestan Steel Company furnace in the country with operations and homogenizing the casting unit after final Fax:+98-61-32908080 the country. (2013 – 2014) surpassed 3.5 in export markets of the re- initially possessed three an unprecedented annual the mixture and melting confirmation. (3 Lines) On the other hand, the million tons. In 1393 (2014 – gion and the world. direct reduction Midrex capacity of 800 thousand tons temperature. In steelmaking unit five Url: http://www.ksc.ir growth rate of production in 2015) on the threshold of the furnaces with a capacity of of sponge iron. Scrap and sponge iron constant casting machines Email: [email protected] Khuzestan Steel Company Ten-Day Dawn ceremonies Khuzestan Steel Company 400 thousand tons annually Following this valuable are melted first in the electric including three bloom and by the end of 1392 (2013 – and the festivities of the 36th at a Glance each, which increased to 600 experience and only seven arc furnace with a high billet and two slab machines IMIDRO Exclusive

Implementation of un- increased production of its Esfahan Steel Company Lack of development derstream development different units, as a result of for its presence in regional of rail and road transpor- project for the absorption of which the increase in produc- markets particularly in tation infrastructures in Esfahan Steel Co. cast iron, including 17 proj- tivity of the entire production Iraq & Afghanistan? transferring raw materials ects; such as casting station factory has occurred. In this During the Iranian year and products. No. 5 with the capacity of regard, with the formation of 1393 (ended March 20, 2015) High costs of financial 1,000,000 tons per year and productivity committees and over 350,000 tons of this com- maintenance. with physical progress of through definition of the tar- pany products exported to the 91%, desulphurization unit gets, indicators and improve- target markets such as; Iraq & Does Esfahan Steel Co. with the progress of 79% and ment measures in all domains, Afghanistan which indicates have any plans for absorp- oxygen workshop with the productivity increase is being 60% increase as compared to tion of foreign investments capacity of 25,000 Normal pursued systematically. the previous year. With regard or overseas investment? cubic meters per hour with to the high quality and brand Investment plans of the the progress of 34%. How would you of our products and satisfac- company which are under sfahan Steel Compa- Out of the total projects, assess the capability of tion of our clients, the com- study are as follow: ny Managing Director, Establishment of a new EDr. Ardeshir Sa'd Mo- 2,000,000 tons line. hammadi, in a press confer- Implementation of Tava- ence commented on the pres- zon No. 2 Project for gain- ent position and the future ing balanced access to the activities of this company. capacity of 4.2 million tons of crude steel per Would you please tell year, including a pelletiz- us about the performance ing unit, oxygen conver- of Esfahan Steel Co. over tor, beam blank casting the past decade? Have you unit & oxygen workshop. accomplished any of your Renovation of coke goals? making No. 2 battery Esfahan Steel Co. better unit, with the capacity of known as ESCO is the only 550,000 tons per year. steel producer in Iran which Project for coal powder produces steel products in injection into the blast blast furnace-oxygen conver- furnace. tor method. In the past decade Increasing the capac- and through implementation ity of Qaem Sponge Iron of Tavazon Project including plant. establishment of blast furnace Treatment and reuse of No. 3 with a capacity of 1.4 industrial wastewater of million tons per year, coke Crystal plaque of Na- the lime producing unit with pany has the capability to the factory. making plant No. 3 with the tional Award for Organi- the capacity of 200,000 tons increase its exports to the re- Establishment of service capacity of 900,000 tons per zational Promotion. became operational in the Ira- Amongst the other gional and other countries. centers in some regional year, sinter machine No. 4 Receiving the highest nian year 1392 (ended March countries. with a capacity of 2.4 million badge of top exporter of 20, 2014). projects under What is the biggest tons per year and two power the country for the first Amongst the other proj- implementation, challenge of Iranian steel plants with the capacity of time amongst steel pro- ects under implementation, producers? 110 MW, the production ca- ducers in Iran. we can mention here is the we can mention Prevalent market reces- pacity of the company has in- Exemplary standard and expansion of the rolling mill here is the sion and drop in sales. creased from 2.2 million tons quality unit. 650 for the manufacturing of Importation of low qual- to 3.6 million tons per year. Plaque of appreciation railway tracks with a capacity expansion of the ity or cheap steel products The implementation of and special statue of clean of 400,000 tons per year and rolling mill 650 for into the country. the plan has “Directly” cre- comparison with the previous iron bar production is 95% air. the physical progress of 40%. Lack of proportion ated job opportunities for year shows a growth of 20%. and for rebar production is Certificate for observing the manufacturing amongst energy costs in 890 people and “Indirectly” This is considered a new an- 30%. consumer rights. Does Esfahan Steel Co. of railway tracks steel production units in Esfahan Steel Company for over 22 thousand people. nual production record since Awards received by the HSE world energy stat- have any plans to increase with a capacity of direct reduction and blast During the past Iranian year, the beginning of its operation. company in recent years are ue and plaque of honor its production? furnace methods. Tel: 031-36240031-2 1393 (March 2014 - March Currently the share of the as follow: The company by fol- 400,000 tons Lack of development of Fax: 031-36240033 2015), over 2.7 million tons company in the production of CE Certificate for export Would you please elab- lowing policies for reducing mines’ capacity in propor- per year. www.esfahansteel.ir of crude steel was produced crude steel in the country is of products to European orate on the development energy consumption and iron tion with increase in ca- [email protected] by the company which in 20% and its market share for countries. plans of Esfahan Steel Co.? materials in recent years has pacity of steel units.

72 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 73 IMIDRO Exclusive

Sangan Iron Ore Mobiliza- 2. Nairiz steel project in try’s steel Industry develop- tion Project Fars Province ment plan stipulated in the out Graphite Electrode Project 3. Shadegan steel project in look deed by 2025 to accom- Khozestan Province plish this three obligations are According to the Article 4. Mianeh steel project in shouldering the NISCO. National Iranian Steel (44) of the Constitution law, Easter Azarbaijan Prov- 1. Decision and policy all the above companies were ince making in the country’s privatized (sangan Iron ore 5. Qhaenat steel project in steel industry by a com- mobilization project is under Southern Khorasan Prov- prehensive studies and process to be assigned to pri- ince investigation (Compiling Company at a Glance vate section). 6. Sabzevar steel project in the country’s steel indus- As mentioned earlier, khorasan Province try plan and revisioning it Tnus, the most specialized company active in the fields of steel making and mining was born. From the beginning to 2001, NISCO was the only company specialized and active in field of managing and steering steel mills, as well as implementation of mining and steel making projects and almost invariably has executed and operated all major steel Mohammad Khandadashpur, Managing Director of NISCO and mining projects of the country. Among them is Mo- ith more than half a barakeh Integrated Steel mill, century experience as a major flat producer in Win implementation Middle East which was imple- Construction and manage- mented and came on stream ment of Steel mills and mining by NISCO during the imposed companies and as an interna- war. tional credible and renowned Some other Steel making company was formed as fol- and mining companies being lows: implemented and operated by In 1959 a substantial step NISCO are: was taken by the then govern- A – Steel Mills ment towards establishing a - Mobarakeh Integrated proper technical organization Steel Mill Co. to create the country’s steel in- - Esfahan Integrated dustry under title of “National Steel Mill Co. Iranian Steel Corporation” - Khozestan Steel Co. which used BF technology for - Alloy Steel Co. steel production. - Khorasan Steel Co. In 1972, the National Ira- - Azarbaijan Steel Co. nian Steel Industries Corpora- - Hormozgan Steel Co. tion was established to supply In accordance with the supervise and commission besides the above under tak- 7. Baft steel project in Ker- in appropriate time). to produce Steel through DRI B – Mining Companies Article (6) of the law for the following steel expansion ing, the execution of the man Province 2. Carrying out relevant process and to supply needed - Chadormalu Mining “Centralization of Industry projects Eight Provincial steel Proj- studies to establish two National Iranian Steel Co. iron ore. and Industrial Co. and Mine Affairs” approved Iran Alloy Steel Co. (Yazd) ects were assigned to NISCO These projects was giant steel mills with 10 In 1979, after the victory - Golegohar Mining and by the Islamic Assembly Par- Azarbaijan Steel Co. concurrently. known as Hashtganeh provin- mty capacity in Persian Address: No. 1713, of the Islamic Republic of Iran Industrial Co. liament, the Iranian Mines and Khorasan Steel Co. The seven steel project cial steel projects (Bafqh proj- Gulf region. above Vali-e Asr Sq., revolution, “The National Ira- - Iran Central Iron Ore Co. Mining Industries Develop- Maybood Steel Co. sites are implemented in seven ect was privatized in 2011) 3. Performing other duties Tehran, Iran nian Steel Corporation and the ment and Renovation Organi- Zagroos Steel Co. deprived regions of the coun- NISCO’s other missions assigned by IMIDRO to Tel: (+9821) 84812221 National Iranian Steel Indus- C – Many coal mining and zation (IMIDRO) was estab- Ahwaz Pipe & Tube try as follows: and current activities are: attract foreign and do- Fax: (+9821) 88902241 tries Corporation were merged auxiliary projects were also lished In 2000, and NISCO as Rolling Mill 1. Sepid dasht steel project To increase crude steel mestic investors by the Email: [email protected] to form the National Iranian Implemented and Commis- one of its major subsidiaries Iranian National Steel in Claharmahal Bakhtiari production capacity by 55 country’s steel industry Steel Company (NISCO). sioned by NISCO. was assigned to implement, Industries Group province million tones under the coun-

74 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 75 IMIDRO Exclusive

The largest ChadorMalu Mining producer of fine iron ore concentrate with iron content and Industrial Company (total Fe) of at least 67.5% About the Company Iranian calendar month of Tir (June/July) and the second in Iran ChadorMalu Mining and phase in the month of Shahri- Industrial Company was var 1393 (August/September Chador Malu Company Share: founded on May 25, 1992. Ini- 2014). The third phase will go 20% tial shareholders were the Na- on stream in 2015 tional Iranian Steel Company 3- Participation in (51%) and Bank Sepah (49%). 3- Project for develop- development projects of The company turned into ment and increase of capacity Ghadir Iron and Steel Co. and a Public Joint Stock and was of Ardakan pelletizing plant Gol Gohar Co. ChadorMalu Complex with Five Production Lines admitted into the Iran Securi- with the investment: 863 bil- Chador Malu Company Share: ties and Exchange Organiza- lion Rials 10.000 billion Rials Ardakan Pelletizing Complex tion in the Iraniancalendar Capacity: 600 thousand tons month of Mehr1382 (Septem- (total capacity of the plant 4 4- Participation in ber/October 2003). million tons). electrode graffiti production Capital: 17100 billion rials Operation: End of 1394 (early project Shareholders: Omid Invest- 2016) ment Management Company C) Major Projects for 37.6%, Mines and Metals De- 4- Project for establish- Future Expansion velopment Investment Com- ment of Ab-DashtSepidan pany 16.4%, Mobarakeh Steel wells with a budget of 1137 1- New pelletizing Company 10.4%, Provincial billion Rials plant: At the stage of Early Investment Company (Edalat work Capacity: 2.5 million shares) 20.7% and other real 5- Project for establish- tons and legal shareholders 14.9% ment of Ardakan sewage treat- Investment: 6.000 billion Rials Mahmoud Nourian, Managing Director and Member of Board of Directors ment plant with a budget of Mine Specifications 4600 billion Rials 2- Two rolling mills: Mine Availability: A) Projects Under At the stage of Early work Geological Reserves: 7.5 million tons Implementation B) Partnership Projects Capacity: 1.1 million tons 400 million tons Actual Production (Higher Investment: 2.390 billion Rials Economical reserves with 320 than Nominal Production 1- Project for establish- 1- Abar Kouh steel and million tons extractable Capacity): 10.5 million tons ment of ChadorMalu direct re- rolling mill project: With an Achievements and Awards Honored as one of the 1386, 1389, 1392 (2005, Average Iron Content: Graded iron ore (By-product): duction and steel factory: with investment of 8571 billion 10top companies in eval- 2007, 2010, 2013) 55.3% (total Fe) Nominal Production Capacity a capital investment of 13520 Rials Ranking first in mine uation of 500 top com- Annual Extraction Capacity: 1.2-1.5 million tons (produc- billion Rials Nominal Production Capacity: exploration and extrac- panies in industrial man- Elected for the third 16 million tons of iron ore tion up to the level of Nominal Capacity of direct reduction: 600,000 tons of steel billets, tion in industrial management in 1393 (2014) time as high productive Production Capacity) 1.55 million tons of sponge 450,000 tons of hot rolled agement category in the unit in Productivity Con- Products Specifications Phosphate Concentrate (apa- iron products. years 1389, 1390, 1391 Elected as high stan- ference in 1393 Capacity of steel making: and 1393 (2010, 2011, tite): By-product with a Nom- Chador Malu Company Share: dard mine unit in the Ira- http://www.chadormalu.com Iron ore concentrate with inal Production Capacity of 1 million tons of steel billets 65% 2012, 2014) nian calendar years 1384, E-mail: [email protected] a minimum iron content of 140,000 tons; production up Mines and Metals Develop- 67.5% to the Nominal Production 2- Project for establishment Investment Company: Nominal Production Capacity: Capacity ment of a power plant with a 35% With an iron ore content of Pellet: Nominal Production capacity of 500 megawatts 60% (Fe): 8.5 million tons Capacity 3.4 million tons; and an investment of 12444 2- Persian Gulf water Nominal Production Capacity: production up to the Nominal billion Rials transfer project: With a total With iron ore content Production Capacity The first phase of the proj- investment of 23.000 billion Fe=55.3% ect became operational in the Rials.

76 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 77 IMIDRO Exclusive

15-meter steps will be turned mining excavations are fo- ried out by using magnetom- continued up to the month of to seven 30-meter steps). The cused in the central and south- eter method. Then through Bahman (January/February length and width of the mine ern parts of the mine and the conducting geophysics op- 2014). In this stage, 8 explor- Sirjan Iron Ore Complex at the end of its life will reach deepest section of the mine erations areas with anomalies atory wells were drilled with www.msas.ir 1700 in 900 meters. The steep has a balance of 1605. In the were selected for excavation. a total measurement of 4065.8 of the working stairs of the calendar year 1393 (2014 – Exploratory excavations in meters of which 501.6 meters imply that this mining region Gohar 2 mass were conducted the total exploratory excava- mine under normal condition 2015), about 9.4 million tons the mine have taken place were in iron, 2874.4 meters has been identified and ex- in the first phase in a regular tions on this mass since the and for the stone walls is 60° of tailings and about 3.2 mil- in several separate phases. in tailings and 689.8 meters ploited in the past centuries. network with a length of 1400 beginning up to date are over and for alluvium 45°. The lion tons of iron ore were From the year 1384 (2005/6) in alluvium. With regard to The approximate age of a meters and a width of 550 me- 20193 meters. steep of the final wall of the extracted from Gol Gohar 2 to 1390 (2001/2) a total of 99 the new phase of the drill- sample of the old furnace slag ters and the drilling of 41 ex- Based on surveys con- mine in the alluvium section Mine. exploratory wells were drilled ings it is expected that about of Gol Gohar mine has been ploratory wells in a distance of ducted to date, the amount of is 38° and in the stone section Production plan for the around Mine 4. The total mea- 4.8 million tons of geological estimated at about 900 years. 100 meters. At this stage 7444 geological reserves of the mine is 45°. calendar year 1394 (started surement of the drilling car- reserves will be added to the The deposit of Gol Gohar Iron meters of excavations were has been estimated around During the life of the March 21, 2015) in Gol Go- ried out so far is 30488 meters geological mining. ore in six separate anomalies conducted on the mass. 56.5 million tons of iron ore mine usually a safety stair is har 2 Mine include extraction of which 4150.6 meters have On the basis of studies with a total deposit amount- The second stage of ex- which has increased by about considered at each horizon. of 3.500.000 tons of iron ore been within the mineral sub- conducted on this mine the ing to over 1200 million tons ploratory excavations was 3 million tons compared to the On this basis, the width of the and 1.400.000 tons of aggre- stance. amount of extractable reserves is located in an approximate conducted in an area of about reserves estimated at the end safety stair for soil and stone gated iron ore. At present ap- By using the data ob- were determined at 83 mil- length of 4 km. 3146 meters in the calendar of the third phase. According stairs with a height of 30 me- proximately 900 work force tained from exploratory lion tons with an iron alloy of Sirjan Iron Ore Com- year 1385 (2006). The third to the latest mineral extraction ters is considered at 10 meters. including the manpower of excavations up to the year 49% and with the tailings ra- Hassan Salari, Managing Director plex is among creditable and phase of exploratory excava- project which was conducted Under the present condition the employer, contractor and 1390 (2001/2) the geologi- tion of 10:1. This mass has an large complexes in the coun- tions of the mine which began at the end of phase 2 of the and with regard to the machin- supervisor are working in Gol cal reserves of the mine was eastern-western extension the ol Gohar mining re- try which started operation in in the month of Khordad (May excavations, 48 million tons ery available, working stairs Gohar 2 Mine. estimated at about 93 million expansion of the final pit of gion by possessing 1387 (2008-2009) within the - June) 1390 was finished with of iron ore reserves with the in the tailings and alluvium Gol Gohar 4 is also one tons. It is noteworthy that which is 2100 and its widest Grich iron ore mines framework of a project for the drilling of 12 wells and a tailings of approximately 3 to have a height of 15 meters. of the six identified reserves the new phase of the exca- expansion 1300 meters. The is considered one of the most equipping Gol Gohar 2 and 4 total excavation of 1421 me- 1 will be extractable. Extraction operations of in Gol Gohar region. Prelimi- vation operations started in balance of activity of the mine active mining-industrial hubs Mines in the field of excava- ters in the month of Azar (No- In the final plan of the Gol Gohar 2 Mine started on nary exploration operations the month of Shahrivar 1392 in the Middle East and has tion of iron ore. Now by pos- vember - December) the same mine, extraction operations October 29, 2005. At present of Mine 4 were initially car- (August/September 2013) and Continued on page 104 rich potentials for becoming sessing anomalies 2 and 4 it is year. Up to the end of the third have started from the sur- a large and competitive region continuing its activities under phase, a total of 12018 meters face (approximate a height of throughout Iran and even in the supervision of the Iranian of exploratory excavations 1745) and will continue to the the world. Mines and Mining Industries were made in the vicinity of balance of 1530 (approximate These mineral deposits Development and Renovation Mine 2. The last stage of ex- mining depth 215 meters). At are located in the Province of Organization (IMIDRO). cavations of the mine started the end of the excavation op- Kerman and 50 km southwest Gol Gohar 2 anomaly is in 1391 (2012 – 2013) and erations by interlocking every of Sirjan. The existing sites one of the six identified de- is underway. So far 52 wells 2 steps of 15 meters the height and the remaining excava- posits in Gol Gohar region. have been drilled with a total of the final steps of the mine tions in place of the deposit Exploration operations on Gol of 8182 meters. On this basis, will reach 30 meters (fourteen

78 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 79 IMIDRO Exclusive Iran Minerals Production and

V. Jaafari, Managing Director of Iran Supply Company Minerals Production and Supply Co.

ran Minerals Production as the executive arm of IM- With regard to the plans and Supply Company IDRO and bring them close of the steel industry like the I(IMPASCO) has put ex- to the international standards. IMPASCO as 55 million ton output under ploration, extraction and de- In an effort to achieve the Vision of 2025, the exist- velopment of new mines high our strategic goals in the key one of the top ing mines will not meet do- on its agenda with an effort processes of the company, companies in the mestic demand in the country. to optimally use mineral re- “exploration”, “equipment Therefore, a comprehensive serves and create value added and preparation”, and “ex- field of mining steel plan has been prepared in line with the general poli- traction and exploitation” activities in the and is under ratification. cies of the system in compli- are applied in order to realize ance with the ‘economy of development of explorations country intends IMPASCO Approach resistance’, development and in the areas of identification, to follow up at towards Brine Reserves moderation. follow up and detailed de- In this regard and description with an aim of iden- international level With regard to the im- spite restrictions of financial tification of new limits and interaction with portant brine deposits in the resources and the sanctions reserves. country which include differ- our company has paid special Among the plans of our foreign companies ent minerals such as potassi- attention to educational and company the following can um, magnesium, lithium and research affairs in an effort to be cited: companies so that in the years etc., the company is ready to target costs and revenues and Design and planning to come it will become one of absorb foreign investors for speed up the aforementioned Purchase and installation the top international mining transfer of technical know- policies by using scientific for the mines and process- companies. how, establishment of factory power of the company ex- ing factories through part- and exploitation of the men- perts. nership of the private sector IMPASCO Approach with tioned deposits. Specification of new or foreign companies Regard to Iron Ore Prices reserves and exploitation of Outsourcing and develop- rare soil elements at half- ing of the exploitation in Major iron ore items industrial scale and operation the existing and new limits produced by the operational of Zarand Tar Refinery have through operation of new units of our company are con- been among our achievements complexes sumed by domestic steel man- in this regard. Our company, Increasing the capacity of ufacturing factories and obvi- in addition to exploration, the present complexes ously drop in export prices extraction and processing Improving of productivity will be somehow effective in of minerals such as iron ore, Improving extraction the trend of securing financial Address: No. 1713, Opp. Cinema resources for developmental lead and zinc has made efforts technology and exploitation Esteqlal, above Vali-e Asr Sq. to prepare the ground for de- projects. Therefore, all our P.O.Box: 14155 - 3598 velopment of exploitation IMPASCO as one of effort and plans are aimed Tehran, Iran level of other minerals either the top companies in the at optimal use of mineral re- Tel: (+9821) 88912591 in terms of product diversity field of mining activities serves in the production chain and the amount of extraction in the country intends to up to the final product so that www.impasco.gov.ir or technology and processing follow up at international the highest value added be Email: [email protected] at legal level of the company level interaction with foreign created in the country.

80 IRAN INTERNATIONAL, June 2015 IMIDRO Exclusive

Localization and gain- ment in projects Continued from page 59 Continued from page 63 ing access to required modern Strengthening the abil- knowledge and technology ity for execution of projects many mining projects which tion in the last year amount- with the effective participa- Improving exploitation have led to the improvement ed to about 17 million tons. Sangan Iron tion of activists in scientific of completed projects of quality and reduced costs Prevalence of construction and research centers so far, have been the result of market in Iran, Afghani- Making decision on What plans do you have close cooperation of mining stan, Iraq, Pakistan, etc. on monitoring and development for the attraction of foreign engineers with other sciences the one hand and ever-in- policies and efficient guid- investors in financial, tech- such as electronics, mechan- creasing development of oil Ore Complex ics, computer and chemistry. industry in exploration, ex- ance toward sustainable de- nological, etc. terms? velopment Sangan region enjoys In conclusion, as was traction and transportation said earlier, taking the mineral of this strategic substance kbar Norouzi, Manag- Promotion of informa- good potentials for investors. reserves of the country into in the Middle East region on ing Director of Sangan tion, consultation, research, In this area so far production consideration, we will real- the other, have developed a Iron Ore in a press This complex education and infrastructure of 17.5 million tons of pellets A ize that there are great poten- highly suitable market for meeting answered questions services for the empowerment and 17.5 million tons of con- with firm and tials in Iran. As we know, the steel products. Besides, the of our reporter on the activi- of the private sector centrate has been projected mechanism for getting rid of development of auto manu- ties of the company: constant steps Increasing the share which will be commissioned many bottlenecks is stronger facturing in Iran would defi- will follow of the private and coopera- within three years. efforts and national will. Ab- nitely act as a substantial Would you please out- tive sectors in development of Projects to become opera- sence of sound management factor. line the performance and accomplishment mine and mining industries tional in future will be imple- in the country, which has al- Iran plans to increase development of Sangan Iron of the targets and Provision of modern mented by IMIDRO, Mobara- ways served as a factor behind the capacity of its raw steel Ore in recent years? technologies required by the keh Steel Company, Khorasan many difficulties and prob- production to 60 million Extraction of iron ore at prospects mine and mining industries Steel, Foolad Shargh Kaveh lems in the society, should be tons per year by the end of the beginning started with the for promotion. Increasing the share of (East Steel) and Bank Melli reformed in order to achieve 2025. Currently a number development of explorations human resources in presenta- Investment. The share of IM- sublime targets. Using the of big international steel for the operation of giant iron tion of technical, engineering IDRO and Mobarakeh Steel knowledge of countries well companies are concluding ore mines in Sangan region of and consulting services of the investment is 5 million known in the field of mining contracts with Iran with the Khaaf with an aim of produc- for the development of its pro- Establishing and oper- target of producing 20 million Development of new tons of concentrate and 5 mil- and constructive interaction aim of participating in steel ing and selling graded iron duction plans. ating phase 1 for production tons of concentrate and 20 systems for human resources lion tons of pellets each and with them would not contra- development. Iran is fully ore and meeting part of the Some of those steps are of iron concentrate with a ca- million tons of pellets by IM- management the share of Khorasan Steel, dict our national interests at ready to attract participants raw materials required by the as follows: pacity of 2.6 million tons per IDRO and other investment Development of Kaveh East Steel and Bank all. Yet, through positive atti- and investors from domestic tude and constructive interac- and foreign companies in steel and cement industries in Increased extraction of year companies. Calling Sangan knowledge-based companies Melli Investment is 2.5 million tion, one can obtain the key to this sector. Future steel proj- the country. iron ore from about one hun- Launching operations the eastern Assalouyeh of Iran in the field of technology and tons of concentrate and 2.5 pass through crises in the field ects will be implemented Given the strategic na- dred thousand tons in early for the establishment of de- is the least tribute we can pay relevant cooperation million tons of pellets each. of mining. alongside rich gas resources ture of iron and its products 1370s (1990s) to over 50 mil- velopment phases for produc- this internationally known Development of in- - Sangan Iron Ore Com Of course, the above- in the Persian Gulf and Gulf in the international markets lion tons in the past year tion of concentrate and pellet brand. This complex with firm ternational interaction and plex has had the required co- mentioned issues should be of Oman with the aim of and in line with the country’s Increased production for gaining access to about 17 and constant steps will follow participation in the field of operation with the investors implemented with an opera- increasing the country’s ca- macro policy making, Sangan of graded iron ore from about million tons of product with accomplishment of the targets transfer and development of for the development of coor- tional outlook and stronger pacity to at least five million Iron Ore Complex took mea- one hundred thousand tons in the participation of invest- and prospects for promotion. knowledge and technology dination in order to advance determination and application tons per year. sures for the establishment of early 1990s to over 1.5 mil- ment companies Localization of tech- infrastructure targets such as of the knowledge of the day Some of the big steel phase one of the iron concen- lion tons in the last year What are your sugges- nology and development of delivery of land. are among basic necessities producing companies in trate plant. During the time of Increasing crushing Some liken Sangan to tions for development of the research for reaching the targets of the Iran are: Mobarakeh Steel construction and equipment units from 2 in 1374 (1995) to mineral Assalouyeh of Iran. mining sector? Are smaller Improving production With regard to regional 2025 Vision Plan and stand- Complex, Khuzestan Steel of the factory, production and 7 in 1393 (2014) What are the future and de- mines in need of develop- capability commonalities and being the ing among world’s renowned Company, Isfahan Steel sale of graded iron ore in addi- Increasing capacity of velopment prospects in San- ment? Supporting market de- closest specialized Iranian countries Mill, Khorasan Steel, Yazd tion to the supply of the feed- crushing units from about 600 gan region? Effectiveness in poli- velopment and boom corporation to Afghanistan It is hoped that Steel Alloy, etc. Also some stock of part of the industry thousand tons in 1374 (1995) Currently Sangan iron cy making decision making, Access to the balanced in geographical terms, do preliminaries will be provided of the steel development cycle, has been an appropriate to about 6 million tons in ore has entered the scene of planning and steering infra- economic, social and environ- you have any plans to invest for the growth and boom plans include Isfahan support for the realization of 1393 (2014) mines and mining industries structure and development mental development of the in the neighboring country? of the mining sector in Iran Mobarakeh Steel Complex, such targets. Establishing infrastruc- in Iran and the Middle East oriented private sector mines and mining sector Sangan Iron Ore Com- as soon as possible and this Isfahan Steel Mill, Khorasan In recent years, Sangan tures and proper grounds for with an investment of over Benefiting from -mod Creating competitive plex cannot make investment will cause prosperity of the Steel, Persian Gulf Saba country up to the point that in Steel, Chabahar Steel, and mines complex keeping pace increasing extraction of iron 120 thousand billion rials. We ern systems of human re- advantage in the country by in other countries due to being addition to being a pioneer in development plan of 10 with the country’s industry ore by implementing activi- aim to construct concentrate sources management and em- the definition of development a government entity; therefore global scenes we will reach million ton mega module cycle as well as with regard ties such as preparation and and pellet factories for sup- ployment and development of and renovation plans there will be no activity in this the level of exporting sciences steel unit in Bandar Abbas, to the increase in demand in establishment of access road plying 17.5 million tons of expert, knowledge-oriented, Strengthening capabil- regard. relevant to mining in the field etc. domestic and international in accordance with interna- concentrate and 17.5 million initiative, entrepreneur man- ity for providing financial re- Sangan Iron Ore Complex of production. markets has taken measures tional mining standards tons of pellets and reach the power sources and attracting invest- http://sioc.ir/

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he share of mineral products and industries The Iranian Tis up to six per cent of government had the gross domestic product (GDP), of which one percent- raised an issue age belongs to mines and five percent to the mining industry. according to In most developed coun- which the Chinese tries, this share is between 16 and 40 percent of the GDP of government had those countries, while Iran is to take measures in the 9th place among world mineral producers; it ranks for the opening of 15th in terms of the diversity of LCs at least twice mineral products with over 60 types of products. as much as the Addressing a news con- Iranian money ference, Dr. Mehdi Karbasian, Deputy Minister of Industry, held by China. Mines and Trade and Man- aging Director of the Iranian situation, this figure will help Mines and Mining Industries improve the economy and for Development and Renovation the same reason, its reduction Organization (IMIDRO) em- to 15 percent is unlikely to be phasized that by mixing oil, agreed upon but reduction of gas and mines huge sums will the royalties up to 25 percent be earned by the country. He is agreed upon by IMIDRO said: “It cannot be said that and the Majlis.” this sector can replace the oil industry because oil has its What is the share of own position in the economy. mineral products and min- But, by paying special atten- ing industries in the GDP? tion to the domain of mining The share of these two and mineral industry a proper sectors is up to six percent of income can be developed for the GDP, of which one percent the country.” belongs to mines and five per- Referring to the contro- cent to the mining industry. versy over determining the If investment in the mining mining royalties, Karbasian sector and exploration field is said: “The figure that has been improved and enough support stipulated in the 1394 (2015- is provided to investments in 2016) Budget Bill for usufruct mining industries the share is 13000 billion rials of which will definitely increase. If we 50 percent or close to 6000 want to fulfill the Vision 2025 billion rials is IMIDRO’s plan to become the top eco- share and the remaining 7000 nomic power of the region, billion will go to the Treasury we should achieve the eight to be spent by the government percent economic growth rate and the Majlis as they deem. and this will not be realized Obviously, under the current unless we develop the invest-

ment domain. endorse the bills. Obviously we pursue the nuclear talks we the oil industry as oil plays its The government has de- greater efforts are needed to should make further efforts to own part in the economy. But, cided to restore boom to the be made in this regard. It must attract foreign investments. special attention to the mines Iran’s Mining Projects economy and has forwarded be admitted that international and mining industry can gen- two bills to the Majlis for interactions are effective and Can the mining sector erate new appropriate income coming out of recession and our resources for domestic be an alternative for the oil for the country. We possess supporting production. The investment are limited; we industry? gas, iron ore, coal, chromite, Open to Foreign Investors MPs too are holding delibera- cannot achieve growth in all The mining sector cannot copper, silica, etc. which are tions and will most probably domains. For this reason, as be described as a substitute for considered to be special ad-

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vantages. If we succeed in de- should be implemented in the veloping the exploration field deprived regions of the coun- in order to access new mines try, or where high technology and at the same time transfer is needed with both cases be- their processing to the mining risk prone, there is need ing industries sector in order for development organizations to meet domestic needs and to enter into the scene. target foreign markets, more Fortunately, develop- added value will be devel- ment organizations have oped. For example, if one cu- been restricted and can run a bic meter of gas is mixed with company as a subsidiary for mining industries, three to a maximum of three years. four times value added will be If the company becomes op- created. In fact, by mingling erational they should transfer oil, gas and mines, huge rev- it which will prevent expan- enues will be generated and sion of the government. On we can use these advantages. the other hand, development organizations have full au- What mechanisms are you adopting for investment in mines and mining If we want to industries? fulfill the Vision It seems that more attention should be paid by 2025 plan to the National Development become the top Fund to the mines and mining industries and facilities should economic power be granted under easy terms of the region, we because this field is risk- prone and the return comes should achieve in long-term. Therefore, more the eight percent facilities should be paid to this field. In this regard we economic growth have proposed that in projects rate and this will where we have cooperation with the private sector we not be realized could use up to 49% of the facilities of the NDF. unless we develop The proposal is pend- the investment ing approval. If approved the private sector too could use domain. facilities of the NDF up to 51%. I believe that we should thority in developed countries not go to the extremes. It is such as Japan and the US and true that we should proceed are considered the arm of the towards delegating the job to government and the national the private sector in order to economy. If development or- strengthen this sector; howev- ganizations fail to enter into er, we should also accept that investment through the gov- the private sector has its own ernment support, which sector limitations. would shoulder the burden of Currently, the real private development of major indus- sector has huge debts to the tries in the country? In some banking system and the gov- projects, development organi- ernment owes contractors a zations due to absence of in- lot of money; in the meantime, vestment by the private sector due to the sanctions they can- should make investment up to not use international facilities. hundred percent. Therefore, it should be admit- For example, in Sangan ted that in big projects which project five million tons of

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pallet and five million tons gage in different trade and in- LC contracts with the Chinese of concentrates were devel- dustrial transactions in mines under the previous govern- oped and the public sector was and mining industries. ment were on 60-40 or 65- hundred percent in charge. 35 basis which we intend to But recently a six-member Which countries have change to 50-50 in mines and private sector consortium has initiated talks with Iran? mining industries. That is to undertaken 60% of the project Most of the negotiating say, 50 percent of the items and IMIDRO has invested in delegations are from Europe, and goods be Iranian and the the remaining 40% percent. especially Germany, Italy, other 50% foreign equipment Also, in steel projects between Belgium, and France. They and machinery, most of which 65 and 80 percent have been have taken steps for making should be Chinese on the basis taken over by the non-govern- investment in Iran. Moreover, of the contract. Of course, we mental sector (private sector), talks have also been held with have managed to use Euro- and IMIDRO’s participation Australia recently. pean machinery or European has been reduced by 25 to 30 equipment manufactured in percent. Therefore, the Chinese China in our steel and alumi- have a small share in the in- num plants. What about the nego- vestment talks? tiations between IMIDRO Apparently, we were and foreign investors, in- faced with some problems cluding Germans, Italians The mining regarding Chinese finance. and Chinese who are fixed sector cannot Would you please elaborate? members at the talks? The Iranian government After the coming to pow- be described as had raised an issue according er of the Rouhani administra- a substitute for to which the Chinese govern- tion over the past year many ment had to take measures for foreign delegations have vis- the oil industry the opening of LCs at least ited Iran to hold talks with IM- as oil plays its twice as much as the Iranian IDRO. But now many of these money held by China. That delegations are expressing in- own part in the is to say, we should receive terest to make investment in economy. But, credit equal to the amount of mines and mining industries money we keep with China. due to the proper exploitation special attention In this regard, talks were held right and appropriate situation to the mines and between the Iranian and Chi- of mines in Iran. However, it nese banking systems. The should be admitted that these mining industry final agreement was to open investors, especially big com- can generate a new credit line after several panies, cannot enter into the months of negotiations which scene due to the limitations new appropriate has made the banking systems imposed by the sanctions, es- income for the of the two sides became active pecially in terms of money again. transfer. Because, they can- country. not receive facilities from Iranian producers are European or other banks or China’s investment complaining about the pref- take any measure to open L/ share in Iran is done with our erential trade agreement Cs. On the other hand, many money and in the form of fi- (PTA) with Turkey arguing of the companies are present nance and up to now it has that it does not serve the in- in world stock exchanges and not entered into direct talks terests of the Iranian side. are concerned any investment with IMIDRO. Projects such What is the status of mining in Iran may land them in the as South Aluminum and coal industries in the PTA? black list. are among plans that are be- We do not have broad Therefore, it can be said ing implemented with China. transactions with Turkey in In mining and mining and steel products, because the the total steel production of steel consumption drop in the Also, due to severe decrease that no actual investment has Of course it should be noted the mining industries field and industries field, most of our price of iron ore has suddenly the world, which reached 1.6 world and this cut iron ore in revenues, major mining been made yet but if the nucle- that there are some plans and interactions with Ankara are exports are destined to other dropped in China and subse- billion tons last year. China prices by half. companies such as Chaderma- ar talks reach positive results small-scale projects that are limited to the field of metals. countries including the Per- quently in the world and this imports its needed iron ore Drop in export of iron lou and Gol Gohar and even and the sanctions on money being implemented with Chi- Therefore, items under PTA sian Gulf littoral states. At has caused problems in the from other world countries in- ore on the one hand and price IMIDRO have faced huge transfer are eased or lifted, a nese money but their number with Turkey in the field of present, we are mainly con- world steel market. China’s cluding Iran. cut to half on the other caused financial problems over com- great number of foreign com- is limited. mines and mining industries cerned about spillover of Chi- share in steel production cur- This year, however, it re- that many Iranian miners sus- pletion of their semi-finished panies are expected to enter Their activities are main- are not extensive and thus nese steel to the Middle East rently amounts to 830 million duced its imports from other tain losses and even some of projects. the scene for investment or en- ly in the field of EPC and the there is no room for concern. and arrival from China of steel tons per year, equal to 50% of countries due to forecasts on the mines were closed down.

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through: following plans have been It’s forecasted that due to material, consumables and “International Industries & considered in the holding in- potential indexes in the region, products of all plant units of Mines Development Company” vestment plans: a store of 4 million tons will be the Complex. This holding company obtained, even more than the A central warehouse will has been established in 28 June Plan 1: Partnership in forecast amount. This com- be foreseen for the complex to 2011 with the purpose of fo- “Aluminum-e-Jonoob” pany is negotiating with local store all goods, consumer ma- cusing on Industry & Mine, by Industries Complex and international companies terials and spare parts Exploration, Extraction & Op- regarding supply of machinery The utilities will include eration of metal & non-metal Considering the trend of as well as processing selection, water treatment and distribu- minerals. At the moment the increasing demand and also in order to extract and process tion, oxygen, nitrogen & ar- registered capital of the com- having significant advantages, Nickel and Cobalt. gon distribution, natural gas pany is 1,500 billion Rials. like energy costs in the coun- Capacity: 100,000 tons and compressed air distribu- try, the project of 1 million Nickel Laterite, yearly tion, electrical facilities, etc. Road map of the holding tons Aluminum production Construction: 18 months which are in the scope of con- (300,000 tons in 1st phase) Location: Gheib well in tractor. Ghadir is planning for the with contribution of IMIDRO Buanate Fars future path of the Industry & has been approved and all Fixed Investment: 11 mil- Project Key Features Mine Holding, based on the necessary licenses have been lion Euro following strategies: obtained. Details are as below: ROI: 3.5 years Utility & media availabil- Capacity: 1 million tons Operation period: 12 years ity at competitive price Industries sector: billet & slab (300,000 tons in Tax: Exempted High demand of pellet in Making a capacity the 1st phase) Output: 37,000 tons Ferro the country which is increas- of 5 million tons in the steel Construction: in 41 months Nickel ing as well manufacturing chain, from Operation period: 15 years Competitive product quali- mine to steel. Location: Lamerd in Fars In case of technology ty / Cost ratio: Due to the State Building Copper con- province, Km 7 of Lamerd- transfer of Nickel bar produc- of the art technology applied Gholamreza Soleimani, Managing Director centrate production with a ca- Yeraz road, energy consuming tion into the country, it would Availability of qualified pacity of 200,000 tons (up to industries zone. be possible to produce it in the manpower mine section) Feed: Alumina (imported), plant. Excellent economic indices Build & expand Alumi- coal, Fluoride,… num bar line (Slab & Alloy) Investment: 7,179 million The Pellets Production Plan Ghadir Investment Co. with a capacity of 300,000 Yuan plus 2,306 billion Rials tons (starting the 2nd phase) (totally 33,026 billion Rials) Title Description Background work & core values of the or- Making Alumina pro- ROI: 4 years and 5 months Capacity 5 MT.P.Y (2x2.5) ganization. duction line with the purpose (construction time excluded) Implementation Period 36 Months As a credible investment of raw material supply. Location Chabahar Port* holding, Ghadir Investment The most important Input Iron Ore Concentrate** Company (public joint stock objectives, by 2017 Mining Sector: We have to Output Pellets company), commenced its op- Considering the future plan to invest in Total Fixed Investment Costs*** 242,412,300 € eration in 1992/93 and started To have 10 of the sub- evolution, making a structural exploration or Return Investment Period 28 Months its activities by managing over sidiary companies in the list of relation between (mineral) * The plan also can be located at Parsian Energy Region 120 subsidiary companies. 100 superior companies in the metal industries plants and buying the mines, ** Fe>68%, SiO2<1.31%, Al2O3<0.26%, CaO<0.31%, MgO<0.22%, Later in 1995/96, this country. their resources is a MUST. to supply feed for S<0.08%, P<0.05% company became listed in To obtain operating Therefore we have to plan to *** Consisting of Pre-Production Expenditures, Land & Site Prepara- the Tehran Stock Exchange & financial and commercial nities are the main attributes profits of Rls 80,000 billion in invest in exploration or buy- the next 30 years. tion, Buildings, Infrastructure, EPC, Transportation Accessories, Contin- (TSE) and henceforth, entered activities. which have contributed to- the 2016/17 fiscal period. ing the mines, to supply feed gency, ECA Credit Insurance Premium, Insurance during Construction. a new phase of sustainable Following the ratification wards elevating this company To maximize market for the next 30 years. competitive advantage and of its general assembly dated and turning it into a model of value and investment returns. We have to add that by Plan 2: A central workshop will profitability. 1393/7/19 (11.10.2014), cur- modern management on na- To obtain a 0.5% share entering to the exploration Nickel Laterite processing be foreseen in the complex Today, Ghadir Invest- rent capital of this company tional and international levels. within Iran’s total economic sector, different mining areas and equipped with all neces- ment Company is the largest stands at Rls36,000 billion. High investment returns growth. will be identified, which the Fars Great Nickel Karan sary machineries & facilities TSE listed investment compa- Creating an investment in the quickest possible inter- To be among the data collection & documenta- is the owner of biggest Laterite to support daily maintenance ny which, through its 7 hold- portfolio in a wide variety of vals, and achieving sustainable Fortune 500 companies. tion by itself, will make a spe- Nickel ore mine in Iran. This and fundamental repairs of all Ghadir Investment Company ing companies & their 70 sub- economic sectors, achieving competitive advantage for the cific added value. So in case of mine is in Fars province (Sar- plant units & facilities of the sidiary companies, operates in operational profits, investing in shareholders and beneficia- Industry & Mine Holding any mine identification, while chahan-Buanat). Exploration complex Address: # 347, Mirdamad Ave., various sectors such as oil, gas lucrative sectors and entering ries, created growth strategies making an ID for it, invest- & extraction operation have A central laboratory will Tehran, Iran & petrochemicals, cement, into new fields of investment and business development as a In order to achieve above ment conditions and added been started and 50% probe foreseen in the Complex Tel: 88787163-6 building construction, mines by benefiting from advantages dynamic and superior compa- objectives, Ghadir has con- value will be available. gressed, resulting a final stor- and equipped with all neces- Fax: 88787167 and industries, transportation, available in Iran’s domestic ny. All these achieved through sidered investment in Min- age of 2 million tons of Nickel sary testing, utility & auxil- http://www.ghadir-group.com electrical power and energy arenas and arising opportu- innovation & creativity, team ing Industries, as a strategy, So in line of above, the Laterite with 1.23 % carat. iary facilities for testing raw [email protected]

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If government revenues with respect to taxes depend only on units which Advantages of used to pay taxes those units would come under additional pressure due Investment in to the current recession and their production will go down. Mining Sector

ran’s budget is strongly dependent on oil and this Idependence has inflicted severe damage on its economic structures so that in case oil prices drop in the world markets, the government revenues would fall and it would be unable to materialize its economic plans. Therefore we should think what mechanisms are available to reduce such dependencies and fluc- Mohammad Reza Bahraman, Vice-Chairman of Iran Mine House tuations in the market. Anti-Iran sanctions and sion and their production will the sudden oil price fall have go down. once again proved that oil Realization of govern- revenues would no longer be ment’s tax revenues in the able to meet government ex- mining sector requires small penditures. The government and medium-sized production is hard pressed in providing units to become active. Small for the country’s expenses and medium-sized units are and it has limited ways and those units that provide ac- means under the present cir- tual employment in the coun- cumstances to come out of try and if they are harmed it these bottlenecks. Increas- would not be easy for them to ing revenues through rais- get back on their feet. ing taxes and duties of pro- In this regard the gov- duction units is one of these ernment must adopt a con- The mining sector is the showing the privileges of this proper investment has been such as Iran Copper Com- is mainly located in the de- investments inside the coun- ways, but taxpayers are not structive and supportive ap- infrastructure of economic sector in the county for mak- made with regard to the ex- pany, Gol Gohar Company, prived areas of the country try and coherent planning is paying taxes in its real sense. proach as income tax can development. Mine and Min- ing investment and demand- isting capacities. From the Chadermalou, etc. and the investments have led required in order to use this Only production units with only be paid when production ing industries supply and ing government support. Iran beginning of oil exploration Each of these companies to a rise in employment and opportunity for the future de- identity cards pay taxes as the increases; it is under such complement other industries is in possession of one per- in Iran, around $1,000billion plays a significant role in the eradication of poverty in the velopment of the country. Ef- addresses of these units are circumstances that small and and a boost in this section cent of the mineral surface has been fetched from oil, economy and has a determin- deprived areas so that these forts should be made to lead listed and they are the most medium-sized units can play would be directly or indi- and about three percent of only $23 billion of which has ing share in the capital mar- regions today have been investments towards new ex- available agencies that can be their due role. Today, a proper rectly effective in increasing the world’s known mineral been invested in the mine and ket. For example, by the end turned to relatively developed ploitation in the mining sec- forced to undertake supply of atmosphere has been created non-oil revenues. If the ad- reserves. It has 68 types of mining industries in Iran in of the past calendar year (end- areas. Grounds can be pre- tor so that mines can obtain government’s expenditures. for development of non-oil vantages of the mining sec- strategic mineral substances the past 50 years. ed March 2015) from $50 bil- pared as such that these areas a high share of the budget If government revenues industries; therefore, under tor are used properly, income but has not been able to use Such an investment has lion non-oil exports $7 billion use their maximum potentials in place of oil. The more we with respect to taxes depend these conditions advantage of this field will be increased the reserves and capacity to resulted in development of was allocated to the mining and reach self-sufficiency and develop production in some only on units which used to should be taken of the gov- significantly. serve the national economy large mining industries such sector which is indicative of independence. sectors which will lead to the pay taxes those units would ernment’s outlook towards The high contribution properly. as Isfahan Steel Mill, Mo- the high capacity of this sec- Despite the existing cri- growth of industries, the less come under additional pres- non-oil products and the min- of the mining sector to the Although Iran is a coun- barakeh Steel, Khuzestan tor for attracting investment. sis, today provides the best concern we will have in fund- sure due to the current reces- ing sector must be developed. GDP is one of the indications try rich in mines, however no Steel and giant companies Also, mining industry opportunity for preferential ing the budget.

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ing industries and constitutes the furnace as powder or tiny harmful elements serve as a the foundation of machinery granules. The most proper factor for reducing the price. technology in the form of dif- size of the particles is between Phosphorus, sulfur, titanium ferent alloys. 6 and 25 mm. Today, natural and similar elements can be Iron Ore in The discovery of an iron iron sulfide (pyrite) is not used considered harmful elements axe dating back to 3000 BC in iron extraction; rather its for iron ore. The most impor- inside a Sumerian tomb in major use is in producing sul- tant export market for iron ore south of Mesopotamia shows furic acid. in the world is China. With a that iron ore extraction and Iron extraction from very high volume of imports the world & Iran use of iron by man had been iron ore is carried out dur- (approximately 930 million common since about 3000 ing physical, mechanical and tons per year), the country is years BC and was mainly chemical processes under the largest iron ore consumer practiced in Egypt, Assyria, specific circumstances. In the market and trade hub and the China, Iran, and India. Some first stage, iron ore is concen- commodity is priced accord- of the works of that period trated through several steps, ing to the conditions of this have been discovered in Ney- including crushing, grinding, region. After China, South riz, Fars Province, and in Gol- Korea, Japan and Europe are gohar, Kerman Province. At other major consumption mar- first, man used natural iron ore In the market, kets for iron ore. In future, the with different degrees of pu- the iron ore alloy Persian Gulf region and coun- rity. However, there is another tries such as Saudi Arabia, Qa- opinion that in those days hu- serves as a factor tar and the United Arab Emir- man beings used meteorites for increasing the ates (UAE) also will be added as the purest iron. The use of to these areas. Therefore, the pure iron was made possible price and some need for planning in this re- Amir Khorami Shad, IMIDRO in about 1300 years BC when harmful elements gard is highly felt. presumably pure iron was ex- serve as a factor As it was noted, the iron Iron extraction tracted accidentally as a result ore alloy is very important. of intense heating of mineral for reducing China is the biggest iron ore from iron ore rocks by charcoal and by heat- the price. producer in the world with a is carried out ing of ochre. production of 1.320 billion The process of extract- tons, but due to the very low during physical, ing iron from natural combi- screening, washing, using of alloy (21 to 31 percent) such a mechanical and nations evolved by the lapse magnetic separator or through production volume is not tan- of time until the first furnace floatation method. The con- gible. In other words, the high chemical processes for extraction of iron in the centrated solution has typi- production volume of iron ore under specific present day style, which is cally 60 to 65 percent iron and with low alloy results in low known as Canalani furnace 8 to 12 percent silica. After iron amount extracted from circumstances. was initiated. The furnace concentration of iron ore, it the ore. Based on some specu- was composed of a fireplace should be turned into pieces lations, this volume compared oday, iron and steel in- with the dimensions of 75 x with dimension of 6 to 25 mm, to other consignments traded dustries constitute one 60 x 60 cm. The evolutionary which is suitable for feed- in the world is equal to 370 Tof the most basic eco- trend of this process reached ing wind-powered furnaces, million tons. In other words, nomic and social foundations a stage that today, giant fac- which is called agglomeration. China is still in need of im- of world countries and this is tories for extraction and melt- Extraction of iron from porting iron ore. because of the essential need ing of iron and steel have iron ore is mainly carried out The most important iron of human beings to advance emerged with several million in wind furnaces, which is ore producing region in the their objectives in life. tons of capacity. actually a large chemical re- world is Pilbara in north of A glance at the efficient The iron ores from which actor in which a mixture of Western Australia where the performance of this vital ele- iron is extracted are mainly limestone, iron ore and coal is world’s largest iron ore re- ment would help us appreciate in the form of iron oxides, heated. In the direct method of serves are located. B y estab- the constructive role it plays such as magnetite or hematite, revival, iron powder is turned lishing railways, big compa- in our life; because in addi- which possess 2-20 percent into iron pellets, which resem- nies have been able to reduce tion to its application in the of impurities (such as silicate ble marbles with a diameter domestic transportation cost field of construction, bridge and aluminates). The impu- less than 1 cm, and then will of iron ore (in some areas even building, etc., it is one of the rities are separated from the be moved to the furnace. to $2 per ton) to a great extent. major commodities in auto iron in the furnace and run In the market, the iron Hedland Port in north of West- manufacturing, shipbuilding out as pellets. The condensed ore alloy serves as a factor for ern Australia, close to Pilbara and locomotive manufactur- and refined mineral ore enters increasing the price and some is the most important iron ore

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export terminal and the larg- diminished the incentive for of exploration, extraction and est terminal for raw materials investment and development processing of iron ore in west loading in the world. Iron ore in this sector. of Afghanistan, is Iran’s San- exports are often carried out Chadermalu, Golgohar gan and Chabahar Port. by large bulk carriers; smaller and Sangan are considered the Foreign investors can ships with a capacity of more largest iron ore mines in Iran create tripartite consortiums than 22,000 tons and large ves- and the region. Experts de- with the presence of Iran, Af- sels known as Panamax with a scribe Sangan (situated about ghanistan, and a third country capacity of more than 70,000 300 km southeast of the pro- and in this way while taking tons. Unfortunately there is no vincial capital city of Mash- trilateral advantage help de- terminal available in Iran for had, Khorasan Razavi Prov- velop and make operational carriers loading iron ore with ince, and near Afghanistan such rich reserves. capacities over 70,000 tons. border) as the “Mineral Assa- If the chain from iron ore Each market in the world louyeh”1 of Iran believe it has mine up to the production of and any price are subject to a very high mineral potential. steel is divided into the fol- supply and demand functions, Development and attrac- lowing seven stages (capital, but sometimes some suppli- tion of foreign investment in technology, raw materials, ers would get so powerful the iron ore chain, including energy, human resources, in- that would be able to decide exploration, processing, iron frastructures, and consumer for the entire market. In the ore concentrate, and pelletiz- market) it can be said that global iron ore market such Iran has relative advantage in a case has happened. China’s the four factors of raw materi- demand is so great that main IMIDRO would als, energy, human resources suppliers can give orientation facilitate any kind and consumer market. It has to the market. The world’s advantages in the two areas largest iron ore producers are of participation of capital and technology but Vale Company of Brazil as and investment in it is weaker compared to the the world’s biggest producer, previous four factors, and still Rio Tinto, the largest producer Iran’s mine and needs development in the in- of iron ore in Australia, BHP mining industries frastructures element. Billiton of Australia as the In general, with regard world’s largest mining com- and welcome to the regional need for iron pany, Fortescue of Australia suggestions by all ore products due to increase and OZ Mineral of Australia. in consumption in Iran, Iraq, These companies, which are experts, engineers, the Persian Gulf southern well correlated with each oth- states (PGCC), Turkey, Paki- er, are actually managing the economists, stan, and CIS countries, we world iron market. investors and recommend all Iranian and Major iron ore producing non-Iranian investors to invest companies and complexes in entrepreneurs in Iran’s iron ore industry and Iran are Chadormalu Compa- from all over rest assured we will not let ny, Gol Gohar Company, Iran them alone in this way. Central Iron Ore, Sangan, Sir- the world. IMIDRO would facilitate jan, Jalalabad, Mishdovan and any kind of participation and Iran Central Plateau. Statistics ing are among major policies investment in Iran’s mine and on iron ore production in Iran in the mines sector and mining mining industries and wel- in recent years are presented industry of the country. Iran’s come suggestions by all ex- in the following chart: (thou- iron ore has a relative advan- perts, engineers, economists, sand tons as unit) tage and always has its own investors and entrepreneurs Iron ore production had a market. On the other hand, from all over the world. downward trend in Iran in the iron ore mines in west of Af- calendar year 1393 (March ghanistan, which are connect- 21, 2014 - March 20, 2015) ed to Iran’s mines in Sangan, 1. Located on the shore of the and would probably remain have also suitable potential. Persian Gulf, some 270 km southeast the same. The reason is the With regard to the infrastruc- of the provincial capital of Bushehr, drop in the iron ore price by tures created by IMIDRO in Assalouyeh is best known as the site for Iran’s land based facilities of the half, that is a drop of $60 be- Iran’s Sangan region and the huge Pars Special Energy Economic tween September 2013 and trained manpower in that area, Zone project. September 2014. This has the best route for development

96 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 97 IMIDRO Exclusive MIDHCO After approximately Mineral chain up to 6 years of its incorporation, mineral industries and inte- MIDHCO attends Middle East Mines & Min- grated ones and cooperates eral Industries Development Highest technology Holding Co. (MIDHCO) was level in copper industry for activities with established on public joint- the first time in the world technology stock basis and accepted in Alacrity of organiza- Over the Counter (OTC). tion owners and From very beginning Defining produced foreign reliable days of incorporation activi- production based on lacks of ties started relying on its ca- mineral section and state min- manufacturers pacity of financial expertise, eral industries by its affiliated technical and brilliant experi- In the level of knowl- companies and ences of shareholders, manag- edge and management, in the ers and advisors by drawing level of first top companies of was successful to outlook document, goals, as- Iran and was successful to ob- increase internal signment and strategies re- tain gifts, appreciation letters, lying on mines and mineral roll or honors (national gist of capacity level industries having priority on organizational development, steel and copper. top engineer of mine section has been operational since last and mineral industries, top year Based on the assignment engineer of materials engi- Pabdana coal process- of MIDHCO to be the model neering and metallurgy and ing plan with capacity of of state industry, it was suc- top researcher of mine and 525000 tons per year which cessful to realize its position. mineral industries.) has been operational since 2 Drafting innovative In global level, we are years ago and accurate strategies among 100 top mineral com- Coke production plan Designing and execut- panies of the world with capacity of 800000 tons ing 20 great plans in mines a year and its refinery which and mineral industries 20 plans in mine has been operational since last lion tons per year which will lished as a private company mines and mineral industries MIDHCO has also par- Defining a new - cat and mineral industries are year be operational in 2017 on public joint-stock basis section in internal production ticipations with internal man- egory in procuring financial designed and followed Ferrosilicium produc- 3 plans of power plant and developed making use portion. ufacturers, consulting engi- resources for investment ac- including: tion plan with capacity of establishment totaling with of financial facilities locally neers, contractors, and R&D tivities 4 concentrate iron ore 12000 tons a year which has capacity of 687 MW and overseas, bonds, financial MIDHCO attends and centers. New methods in fast plans each 2 million tons with been started since last year Baked lime production packages, instant completion cooperates activities with Further to selling tech- execution of projects, time 2 of them utilized for 2 years Sirjan steel production plans with capacity of 220000 of plans, reaching the level of technology owners and for- nology and technical services record in the section of state and 2 developing plans is pro- plan with capacity of 1 mil- tons and dolomite with capac- production by selling prod- eign reliable manufacturers abroad in order to finance mines and mineral industries ducing recently, totaling for 8 lion tons which will be opera- ity of 84000 tons a year ucts and services of affiliated by its affiliated companies from affiliated companies With designed capaci- million tons stone ore concen- tional up to end of 2015 Coal processing plan companies and therefore con- and was successful to increase established abroad. In order ties in progress 4.2 million trate production capacity per Zarand steel produc- in Tabas with capacity of ducted financing roles in this internal capacity level, trans- to develop activities aboard, tons of steel will be produced. year tion plan with capacity of 1.7 525000 tons a year which was industry. Not only this com- fer and develop copper indus- this company took action to Current production of raw 3 stone ore pellets million tons which will be recently started pany does not have any finan- try and was successful to reg- organize and plan by cooper- Address: No. 8, Ma'aref Ave., steel is about 16 million tons plans each with 2.5 million operational from first half of Total investment amount cial load on the governmental ister new technology in global ating engineering company, Farhang Blvd., Sa'adatabad in the country tons capacity per year highly 2016 of above plans exceeds the budget but also decreases the level and patent registration. construction contracting com- Tel: (+9821) 27340 Value of productions required for the country all Bootia Iron sponge amount of 5,000,000,000 portion of basic metals im- This cooperation is also for pany, excavation company, in completing plans for more will be operational in 2015 production plan with capacity USD. port to provide exchange sav- the purpose of transferring commercial company and www.midhco.com than Rls 120,000,000,000,000 I million tons stone of 2 million tons and bootia ings for the country and cre- technologies in other coun- transport company. [email protected] per year sponge production plan which steel with capacity of 1.5 mil- MIDHCO was estab- ate potentials of export in the tries throughout the world.

98 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 99 IMIDRO Exclusive

he Iranian Mines and ploration section of the Pro- Mining Industries De- duction and Supply Company Tvelopment and Reno- in the year 1393 focused a vation Organization, known major portion of its activities as IMIDRO, in the first decade Investment in on exploration of coal and of its activities has invested iron and managed to make over 2920 billion rials in do- 82,000 meters of excavations mestic exploration operations. in the entire exploration proj- Comparative statistics of IM- ects of which 36,000 meters IDRO’s exploration operations belonged to coal and 29,000 over the years of its activities meters to well logging. is witness to great changes be- Exploration On the basis of com- fore and after notification of parative statistics, in the years Article 44 of the IRI Constitu- eral indices in prone areas studies of Sistan & Baluches- 1392 and 1393 the condition tion on privatization. South Khorasan border tan: Terminated and promis- of excavated items showed A study of its perfor- area, Sistan &Baluchestan ing areas have been reported a growth rate of 264%, sam- mance in the first decade of border area, Saravan area, sat- to the province for registration pling a growth rate of 415%, activity indicates promotion ellite block area of Sistan & and licensing well logging a growth rate of the level of activity of sub- Baluchestan, Iranshahr placer of 312% and geophysics a sidiary companies which is iron area, Ardebil Qezel Ozan There are 14 areas with growth rate of 291%. clearly noticeable in the index area and Iran’s central area exploration license in the of excavation. With the priva- provinces of Qazvin, Isfahan, Investment in exploration: tization of large companies, B) Areas with license Zanjan, Central Iran, Yazd, IMIDRO exploration pro- their exploration performance 1. General exploration Ardebil and, Sistan & Baluch- grams have been planned with has reduced and the reason is of Milleh, Sebarz, Kouhdam, istan which are under imple- an aim of discovering new existence of high risk in ex- Shir Pass, Chah Rahman, mentation. Eight projects have resources for development of ploratory activities. However, Shekar Ab Agat been finished of which four the mining sector, providing a the shareholders will decide 2. Complementary explo- have entered into the next ex- platform for attracting domes- on the course they should take. ration of Nikoueiyeh, Aqchek- Ali Asgharzadeh, IMIDRO ploration phase and explora- tic and foreign investment by The government, by boosting and, Galooche, Siah Jangal tion activities are underway in preparing exploratory docu- infrastructures in the explora- six other areas. mentations in accordance with tion sector such as increasing C) Field inspections There are 14 international standards, explo- the capital of Insurance Fund A total of 93 inspections Explorations in Sangan min- ration investment in deprived for Mining Activities as well have been conducted in the areas with eral area (Sangan Complex): areas with mineral potential as paying financial facility and provinces of East Azarbai- exploration license In the calendar year 1393 for leading resources, encour- providing machinery to the jan, Zanjan, Qazvin, Isfahan, (2014-2015) the western and aging development, creating private sector is encouraging Kerman, Yazd, Sistan & Bal- in the provinces central anomaly explorations job opportunities and main- them to increase exploration uchestan and Ardebil. of Qazvin, were conducted in mineral ar- taining safety in those areas. activities. Meanwhile, experts 1. The border line of Sis- eas of Sangan with an aim of Based on an approved are aware that due to the lower tan & Baluchestan: Comple- Isfahan, Zanjan, increasing the proven mining long-term plan (for a period world prices of minerals, the tion of identification phase Central Iran, reserves while 22000 meters of of three years) designed in an exploratory drilling index is and checking, results of im- exploration excavations were area of approximately 200,000 on downward trend. plementation of the mentioned Yazd, Ardebil made in over 50 speculation km and in 15 exploration areas During the calendar phases which led to identifica- and, Sistan & rings and new reserves of these with a budget of over 12,250 years 1381 up to1391 (2002 tion of 143 mineral indices the anomalies are under estimation billion rials, exploration of to 2012) IMIDRO and its af- metal indices in 12 explora- Baluchistan with the excavation operations. mineral areas and identifica- filiated and subsidiary com- tion areas were inscribed and which are under tion and follow-up studies as panies, defined 254 explor- notified to the province for Exploration in Sangan area: well as general and detailed atory projects of which 82 are registration and licensing. implementation. This activity was conducted explorations are among the under implementation, 172 2. Saravan area: Comple- with the cooperation of the geophysics points and 8000 12,000 meters of excavations the license were followed up main topics. In parts of the im- have been completed and 33 tion of identification phase identification phase Geological Organization in an exploration excavations and which resulted in an increase and operations for exploration plementation of the operations have led to the discovery of and identification of 44 min- 5. Iran’s central area: area of 11500 square km and preparation of geological map in mining reserves from 89 excavations were planned for and in case of interest of the reserves. eral indices and follow up of Concluding a contract with with the excavation of 15000 is following up to determine tons to over 108 tons. The re- 10,000 meters. Pasargad Geo- private sector to participate in registration of indices in 12 Eskam Company with 10% linear km the aerial geophys- reserves in these indices. sult was verified by the Min- science Company was selected the activities, continuation of IMIDRO and Investment exploration areas progress in implementation of ics operations were followed istry of Industry, Mines and as the contractor company and the operations will be trans- for New Discoveries 3. South Khorasan bor- operations up in the year 1393. With Exploration in Zarshuran Trade and the provincial de- is equipping the workshop. ferred to the private sector and der: Works are underway in 6. Iranshahr placer area: the introduction of 40 new gold mine: Exploratory op- partment and was registered in exploration-mining compa- A) Exploration areas checking phase Completed and the report is anomalies it entered into fol- erations in the mining area the operation license. Mean- IMIDRO Exploratory Op- nies with technical know-how. Identification of promis- 4. Ardebil area: Getting being finalized low-up operations and by the concluded in the calendar year while, exploration operations erations at Production and ing mining regions and min- a consultant and following up 7. Satellite poly metal excavation of 29000 surface 1393 (2014 – 2015) with over around the mine and within Supply Company: The ex- Continued on page 104

100 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 101 IMIDRO Exclusive Persian Gulf Mining and Metal Industries Special Economic Zone

ngineer Masoud Hen- for commencement of execu- with the exploitation of Al- very important infrastructural dian, Managing Direc- tive operations. The zone, with Mahdi Aluminum and Hor- projects in recent years such Etor of the Persian Gulf investment projects worth $8.9 muzal Aluminum plants has as Genou post and transfer Mining and Metal Industries billion and over $2 billion of increased from 110 thousand lines with a capacity of 600 Special Economic Zone, in projects in the stage of nego- tons to 257 thousand tons. megawatt and investment of a press conference answered tiation or signing of contracts Efforts are being made to in- $40 million; Shahid Lash- question of our reporter. is trying to contribute to the crease the figure to 200 thou- kari 400 to 230 kw post with country’s economic boom. sand raw anodes and 150 thou- a capacity of 1000 megawatt Would you please elabo- At present, 13000 people sand baked anodes through and investment of $45 mil- rate on the performance and are directly working in the attracting domestic and for- lion; plan for development development of the Persian zone. In comparison to the eign investment. This will turn of loading and reloading pier Gulf Metal and Mining Spe- first decade of its operation, the zone into a hub for produc- for bulk minerals from 6 to 12 cial Zone in the past years? the figure has increased sev- tion of aluminum anode. million tons with an invest- The performance of the eral folds. The zone is mak- The production capacity ment of $56 million; develop- er plants and water, electricity, Bandar Abbas power plant and with India and Kuwait and in Persian Gulf special economic ing efforts through attracting of zinc ingots in the region ment of grantable land of the gas, telecommunications, rail- neighborhood with oil refiner- At present, this regard memoranda of un- zone for mining and metal in- domestic and foreign invest- has increased from 12000 to zone from 2000 hectares to road, road and marine lines. ies, passage of nationwide gas 13000 people are derstanding have been signed dustries can be studied in two ment to increase the number 18000 tons and several indus- 5000 hectares, preparation of Also, other responsibilities pipeline known as the Peace with the negotiating compa- areas: investment attraction to 30 thousand people. Upon trial and mining projects are comprehensive plans for wa- have been defined for the zone Pipeline and acquiring gov- directly working nies. The plans include two and supply and development commissioning of Hormuzgan under way in the zone. Mean- ter, electricity, and gas in the such as supporting economic ernment approval for transfer in the zone. In steel plants (1 million ton and of investment infrastructures. Steel and Kaveh South Steel while, attraction of investors zone, implementation of fenc- activities, establishment of in- of gas to the zone, possessing comparison to 3 million ton), two pelletizing In the field of investment projects steel output capacity for the implementation of ining and building roads, several ternational trade relations and mineral marine terminals with plans each with a capacity of 5 attraction the performance of in the zone will increase from frastructural and prioritized bridges and development of dynamism in regional econo- a capacity of 12 million tons the first decade of million tons, two rolling plans the zone has enjoyed a grow- 1.8 million tons to 4.2 million projects in the zone is among green space up to 200 hectare my and production and pro- and oil terminals with a capac- its operation, the (1 million ton and 3 million ing and outstanding trend in tons. Through implementation the achievements during re- are among the important plans cessing of commodities, trans- ity of 15 million tons. ton), and two power plants recent years so that the amount of ongoing projects such as cent years. Through imple- in this regard. ferring of technology, non-oil In a near future with the figure has increased each with a capacity of 500 compared to the previous de- Saba Steel of the Persian Gulf mentation of two desalination exports, creating productive preparation of a comprehen- several folds. megawatt. Meanwhile, the cade has witnessed a growth and Mobasher Noor Darya projects in Kaveh South Steel Would you please spec- employment, re-exports tran- sive plan for the large port of zone is prepared to hold ne- of 450%. The amount of infor production and rolling of and Mobin Mehr Nasab Fars ify on the responsibility and sit and transship, and transfer the zone and with the addition Proximity to Shahid Ra- gotiations and accept foreign vestment in the zone which steel as well as the project for with a total capacity of 155 characteristics of the Special of commodities. of 8 jetties posts the capacity jaei Highway, possessing the investment in the field of steel was $2 billion during the 1376 development of Hormuzgan thousand cubic meters per day Zone? What plans do you Generally, proximity to of loading and reloading will five-star Persian Gulf Hotel, production and steel down- – 86 decade (1997-2007) has Steel the output will reach 10 the capacity of production of have for foreign investors? target markets, neighborhood increase up to 70 million tons. closeness to the road, marine, stream and upstream indus- increased to about $9 billion million tons. edible water in the zone has The missions sketched with and access to interna- Enjoying mechanized infra- air and rail connection lines tries, aluminum production in the past few years. Making investment in made a multiple increase. for the zone are providing the tional waters and closeness structures for unloading and for easy access to export of and downstream aluminum in- The zone has attracted upstream steel industries has Also, construction operations requirements for the attrac- with the Persian Gulf and reloading of bulk minerals, in- products, several desalination dustries, establishment of de- about $3281 million in the started in the zone in recent for the two Oxin Deutschland tion of domestic and foreign the Strait of Hormuz, access cluding mechanized machin- plants, stationing of a private salination plant, construction area of energy consuming in- years and now two phases 235 megawatt and Al-Mahdi investment and leading them to north-south corridor and eries for stacking and reclaim- customs office equipped with of power plants, establishment dustries and related projects of Maad Koush pelletizing 500 megawatt with a total ca- towards establishment of in- Central Asian with Caucasus, ing of materials, unloading global ASYCUDA (automat- of marine terminals, produc- have been put into operation. project with a capacity of 5 pacity of 735 megawatt have dustrial, mining, oil, energy proximity to the largest trade and reloading of ships, loaded system for customs data), tion of alloy and ferroalloy Projects worth $1900 million million tons and Kaveh Steel started in the zone and two consuming petrochemical port of the country (Shahid ing and unloading of trains, a collection of steel and alu- steel, production of aluminum in the field of energy inten- Pelletizing with a capacity of 1000 and 500 megawatt pow- industries (non-oil), services Rajaei), availability of nation- 40 hectare depot for bulk min- minum plants, power stations, alloy and other mineral and sive, industrial and mining, 5 million tons are under con- er plants have been put on the for the support of domestic wide railroad terminals and erals and 30 km of conveyor and marine infrastructures, metal industries upon propos- petrochemical and upstream struction. Maad Koush con- agenda of the zone. products and development of easy access to the mines of belts, 2000 hectares of land as have all prepared the ground al of the investor. and downstream industries are centrate plan with a capacity In the area of develop- exports and implementation of the country, presence of rich southern northern and middle for investment. in the stage of construction of 2.5 million tons will start ment of investment infrastruc- engineering plans for the op- iron ore in the vicinity of the sites and 3000 hectares of land With regard to the plans Are the ports and ma- and installation of equipment. operation soon. tures in the zone reference eration of infrastructural proj- province, proximity to Bandar as the development site have of the zone for attraction of rine terminals facilities of Over $3700 million worth of The output capacity of can be made to the imple- ects such as development of Abbas International Airport, increased the total span of the foreign investors, currently the country sufficient for the investment projects are ready aluminum ingots in the zone mentation and exploitation of infrastructures of jetties, pow- closeness with 1200 megawatt zone to 500 hectares. negotiations are underway import and export of min-

102 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 103 IMIDRO Exclusive Persian Gulf Mining and Metal eral substances and mining absence of bureaucracy Continued from page 79 Continued from page 101 industries? What are your Efficient and educated suggestions for improve- human resources starts from horizon 1770 Presence of private sector ment in this regard? High efficiency of the and at the final edge reaches in mineral exploration: The Industries Special Economic Zone Currently the present work force a balance of 1290 and the private sector from the year piers in the country can ad- Presence of financial and depth of the final pit will be 1381 (2002) to 1387 (2008) he Persian Gulf Mining and Metal Industries Special Economic dress import-export demands liquidity facilities about 480 meters. increased its activities by 12 of the country and with regard Strong systems for Currently the balance times and then in the year 1388 Zone has been founded with an aim of creating and developing to the development of export- presentation of services of activity of the mine is (2009) registered a growth Teffective industrial and mining activities by attracting and leading oriented products, the zone Strengthening executive 1620 and since the start of rate of 45% as compared to domestic and foreign investment through using modern technology and has formulated a compre- organs and information its activity to date, 10 stairs the previous year but since offering special services in line with national qualitative and quantitative hensive plan for creation of a systems have been opened and the then it has been faced with a growth. large port of the zone which Allocation of the current depth of the mine is downward trend as in the years In line with this mission, the zone has attracted $3,281 million through establishment of 8 required credits 150 meters. The height of the 1389 (2010) and 1390 (2011) investment in the field of energy industries and put related projects into new pier posts will increase Presence of professional designed stairs is 15 meters it recorded a drop of 23% as operation. It has also concluded contracts worth over $5,600 million in the present unloading and re- consulting companies compared to the year 1387. A and the steep of the wall in the field of steel, aluminum, zinc ingot, power plant, desalination unit, loading capacity of the zone Acquaintance with the alluvium is equal to 38 glance at the type of explora- petrochemical and downstream and upstream steel industry cycle with from 12 million tons of bulk investment rules and degrees and in the stone section operations of the private minerals and 15 million tons regulations tion 45 degrees. The width of sector over the past 10 years, some being at the stage of construction and equipment installation. of oil to a total capacity of 70 Presence of resources the safety stair for soil and it will be specified that the pri- million tons. (energy-mine) stone stairs with a height of vate sector had an average par- Advantages and Strong Points Taxes and duties 30 meters is 8.4 and 16 me- ticipation share of 40%. This What are your propos- Production costs and is while 47% of its explora- Presence in the most important strategic point of the world and having easy access to open seas ters, respectively and has th als for attracting foreign finished prices been considered at 4 meters tion costs have been spent on Massive oil and gas energy resources of the 8 Oil Refinery, the Persian Gulf and Hormuz Star with a capacity of investors in special zones? for the final pit of the mine. trenching and surface excava- one million barrels per day and gas refineries of Sarkhoon, Qeshm and Gavarzin Can the present regulations Today one of the best Extraction operations of tions and only 17% have been Proximity of Hormuzgan Province with the country’s most important iron ore mines (Chadermalou, Gol Gohar, address demands? places for investment is free Gol Gohar 4 Mine started on spent on speculation and deep Sirjan, Markazi Iron Ore) and easy access to other mines as the raw materials for the production of steel and aluminum Effective factors in attrac- and special economic zones 6 August 2009 and are still identification excavations. Railway infrastructures: Possessing two nationwide railroads with exclusive maneuvering stations tion of foreign investment are: which have high capacity for underway. Under the pres- Aviation infrastructures: Easy access to Bandar Abbas International Airport Enjoying domestic peace absorbing investment. In other ent circumstances and with Presence of foreign investors Marine infrastructures: Availability of a dock for unloading and reloading minerals with a capacity of 12 million and security points of the world large scale the available machinery the and owners of technology in tons and an oil platform with a capacity of 15 million tons per year and capable of extending to 70 million tons, and Support of the planning is made for the de- exploration sector: The ex- working stairs in the tailings proximity with Shahid Rajaei and Shahid Bahonar ports government velopment of special and free and alluvium have a height ploration management in line Power supply infrastructures: Operation of 1000 megawatt dispatching substation, 400 to 230 kilovolt, enjoying four Enjoying proper location zones and success of many of 15 meters. Presently iron with the policies of IMIDRO Accepting targets for countries of the world is in- ore extraction is focused on has so far sought participation power plant projects with a generation capacity of 2200 megawatt and planning for generation of 5600 megawatt electricity economic liberation debted to the free and special the bottom and eastern bal- of the private sector in all ex- Water supply infrastructures: Operation of a desalination plant with a daily production capacity of 35,800 cubic Possessing proper rules zones. For becoming success- ance of the mine and the ploration areas under imple- meters which will be increased to 200 thousand cubic meters per day. and regulations in line with ful in this regard, paying at- deepest part of the mine bal- mentation or in areas with li- Gas supply infrastructures: Obtaining approval of the National Iranian Gas Company for supplying 2.2 million the requirements of the tention to the following points ance is 1620. cense. To this end, it has held cubic meters per hour, receiving government approval for transfer of gas from the seventh nationwide trunkline called industry and mines sector is necessary: In the calendar year several sessions with different “peace” to the special zone and planning for implementation of the comprehensive gas plan in the zone Presence of infrastructure 1. Development and mainte- 1393 (2014/15) about 25 companies and taken measures Enjoying mechanized infrastructures for unloading and reloading of bulk materials including: Mechanized installations nance of the required in- million tons of tailings and for encouraging investors in machineries for accumulation and collection of materials, unloading and reloading by ship, unloading and reloading by Access to facilities frastructures in the indus- the private sector by providing approximately 2 million tons train, 40 hectares of land for the depot of bulk materials and 30 km conveyor lines Skilled and specialized try sector and other sectors of iron ore were extracted the possibility of visiting the manpower 2. Development and educa- from Gol Gohar 4. The plan above-mentioned areas. Access to the market tion of efficient human for production in the current In this regard, IMIDRO Industries for Investment in Special Zone Easy business resources with high value year (1394) in Gol Gohar 4 has lately taken measures for No. Investment Projects Ensuring infrastructures added who are considered includes 2.000.000 tons of the formulation of a partici- Strong insurance the asset of the country iron ore. At present a work pation pattern with domestic 1 Construction of steel, aluminum and pelletizing production plant institutes 3. Supplying the raw materi- force of about 750 people, and foreign investors and the 2 Construction of downstream steel and aluminum industries Connection lines als required by the inves- including workers of the em- relevant guidelines are being Construction of a platform for the export of bulk and oil products to create 20 million Access to raw materials tors ployer, the contractor and the finalized and approved. After 3 tons capacity for unloading and reloading Educational centers 4. Supplying the required en- supervisor are busy in Gol preparation and communica- Proper land ergies (water, electricity Gohar 4. Production plan of tion of the blueprint in ac- 4 Construction of a plant for production of oil and gas pipelines Access to suppliers and and gas) Gol Gohar 2 and 4 up to the cordance with the anticipated 5 Construction of a plant for petrochemicals and subsidiary industries certainty over investment 5. Improving economic, so- planning, it is hoped that up to completion of exploration 6 Construction of a refinery and subsidiary industries profitability cial, cultural, political and operations have been sepa- 30% of the required explora- 7 Construction of a power plant Address: km 13 of Shahid Rajaei Stability of rules and legal indicators in the soci- rately shown in the tables tion credit will be maintained Highway, Bandar Abbas regulations ety and appropriate demo- below. through these resources. 8 Construction of service units Tel: (076) 33592201-10 Sound localization and graphic proportions Construction of other industries proposed by the investor in compliance with Fax: (076) 33592211 9 application in the special zone Website: www.pgsez.ir E-mail: [email protected] 104 IRAN INTERNATIONAL, June 2015 IMIDRO Exclusive

past three decades of tireless Sanat Company has also im- factories were imported. Eh- efforts. plemented projects outside the Presently Iran, das Sanat Company managed Ehdas Sanat Construction and com- country within the framework to employ all the capacities of missioning of nine cement fac- of exporting technical and en- Turkey and China the country both in the public tories with 10 production lines gineering services which will and private sectors and im- with a capacity of 11.3 million be referred to later. are known as prove the local manufacture Successful in Export tons per year, including: ce- Increasing cement pro- the three major of equipment up to about ment factories of Khash, Kurd- duction capacity in the coun- 75%. The obvious example of estan, Ardebil, Hormuzgan (2 try between 1374 (1995) and exporter countries localization of the technology of Technical and lines), Hegmatan, Khuzestan, 1382 (2003) by 12.6 million of cement in the can be traced in cement facto- Darab, Dashtestan, Shahr-e tons per year of which about ries of Darab and Dashtestan Kord, and a cement export 7.5 million tons were supplied world. where over 75% of the factory terminal in Bandar Imam with by Ehdas Sanat Company. As machinery has been manufac- Engineering Services a capacity of one million tons a result, the capacity devel- this regard, the forex alloca- tured domestically. per year as well as transfer- oped by Ehdas Sanat Com- tion for constructing a cement Among other effective orteza Hashem- Sanat Company in develop- ries in deprived regions of the In fact, one of the main ring three cement plans (Pey- pany amounted to 59% of the production unit was reduced roles of Ehdas Sanat Company pour, Managing ment of cement industry in country. reasons behind the formation vand of Golestan, Zabol and entire capacity of the country. by half compared to other mention can be made of elimi- Director of Ehdas the country? Removing the problem of Ehdas Sanat Company was Nahavand) with a progress Increasing technical cement units in the country. nation of deprivation, creation M (A rise in domestic manufac- Sanat Company in a press in- In 1365 (1986-87) and of shortage of cement and put- development of cement indus- of approximately 50% to the and engineering power and of massive job opportunities, terview underlined the vital under circumstances that the ting an end to the country’s de- try and attainment of self-suf- private sector which is consid- promoting share of domesti- ture from 25% to about 80% self-confidence and boosting role cement plays in the devel- country was faced with ce- pendence on cement imports. ficiency in the field of cement ered one of the most important cally manufactured equip- in the manufacture of equip- non-oil exports. opment of the country as well ment shortage crisis, Ehdas Developing local which was realized thanks to achievements of Ehdas Sanat ment required by the pro- ment and machinery required as its export. Excerpts from Sanat Company started its ac- knowhow and the required the efforts of ministers and Company. This success left duction line and reducing by cement factories). This What is the capacity of the interview follow: tivities by focusing on the fol- expertise for the construction directors of the time. This is- significant effects in several foreign exchange spending occurred at a time when in Iran’s cement production lowing three axes: and commissioning of cement sue can be further researched economic, social, cultural and on cement projects which are 1980s the major part of equip- and what is its global Would you please elab- Construction and com- factories. with a reference to the valu- scientific fields. Furthermore, among other lasting activities ment and machinery required ranking? orate on the role of Ehdas missioning of cement facto- able achievements over the it should be said that Ehdas of Ehdas Sanat Company. In for construction of cement Cement industry plays a

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significant role in the national cessful companies in the field The recession in development in order to maintain the re- development and economic of export of technical and en- and construction projects has quired liquidity for paying growth of the country. This gineering services. Having led current cement producers costs and settle their banking industry, with a background of gained valuable experiences to export markets. Export of balance sheet) close to 80 years, has contin- in the field of construction 17.5 million tons of cement Expansion of whole- ued its pace of development. In and implementation of cement and clinker in the 10 months sale and business broker mar- 2013, Iran produced 70.2 mil- projects within the country of the calendar year 1393 ket due to lack of possibility lion tons of cement account- Ehdas Sanat also maintains (ended March 20, 2015) lends for export of high amounts of ing for about 2% of the global presence in the international further proof to this claim. products from a factory which share and standing fourth after arena to obtain new opportu- Meanwhile, cement factories results in failure to provide China, India, and the United nities and prove its capabili- should make utmost efforts to- the cement required by large States. It should be noted that ties. In order to gain national wards renovation, using mod- projects and participation in at present this industry is com- and regional credit the Com- ern technologies, reducing en- tenders prised of about 70 active man- pany is constructing two giant ergy consumption, producing Growing problems re- ufacturing plants and 19 more cement projects in Syria and special cement and promoting garding transfer of hard cur- units are expected to become Venezuela. environmental standards. rency operational in coming years. Conclusion of the first B) With regard to cheaper Hesitation of foreign Through operation of the new contract in 1379 (2000) relat- manpower, lower costs of en- purchasers over capability of units, Iran’s global ranking ed to a cement project in the ergy in comparison with other Iranian companies to conclude will improve in terms of ce- city of Hamma in Syria with countries, massive resources heavy and long-term contracts ment production. a capacity of one million tons and availability of raw mate- which has led to a sudden halt which was officially inaugu- rials needed by cement facto- in exports due to prioritization What is the export sta- rated and put into operation in ries, Iran can still preserve its of meeting domestic demands tus of the cement industry the presence of the then Ira- competitiveness in production by the government (for exam- in Iran? What is the status nian minister of industry and and export of this product. In ple halting cement exports in of export of technical and the Syrian president in 2007. this regard, it is necessary to the calendar year 1375 (1996) engineering services in this Conclusion of the second remove the existing obstacles by the Market Support and sector? contract was in1383 (2004) in the way of development of Regulation Headquarters). In 2012, based on statistics which was related to Cerro cement exports as mentioned Reduction of politi- published in Cement Review, Azul cement project in Ven- below: cal interactions in some cases Iran is the main cement export- ezuela with a capacity of one Weak supportive poli- will lead to periodical closure er in the world so that with 13.8 million tons pursuant to an cies and absence of formulated of borders which will stop ex- million tons of exports it stands agreement reached in the joint and long-term plans for facili- ports for a few days in the first place followed by commission of the two coun- tation of exports and possibil- Turkey, China, Thailand, Japan tries which has been officially ity of competition with rivals How do you predict and South Korea. inaugurated in the presence of such as Turkey, China, etc. future of cement indus- According to the latest industrial and mining officials Lack of bilateral agree- try globally and how much statistics received from the of the two countries. ments with neighboring coun- should Iran’s share be in this Ministry of Industry, Mines Another point which tries concerning removal or market? and Trade the amount of ce- should be mentioned is ac- reduction of export tariffs and With regard to the ap- ment exports in the first 10 tive presence of Ehdas Sanat export priorities for the expan- plied nature of cement and months of 1393 (March – De- Company in a number of in- sion of target markets increase in construction of cember 2014) was about 11.8 ternational tenders in Libya Lack of allocation of infrastructures in developing million tons and the amount and Algeria in recent years. export awards to cement in- countries and the rising num- of clinker exports during the Despite our success in com- dustry ber of emerging and develop- same period stood at about 5.7 petition, the projects failed Lack of provision of ing countries, global demand million tons. to become operational due to required infrastructures rang- for cement reached four bil- Considering that growth non-specialized problems. ing from rail transportation, lion tons in 2013. Meanwhile, of cement production during terminals and sufficient border cement production in 2013 the past ten years has been What is your recom- facilities, etc. amounted to four billion tons very high thanks to localiza- mendation with regard to Lack of export asso- of which over 57% was pro- tion of the industry, great development of cement in- ciations, operation of factories duced in China followed by achievements have been made dustry in Iran and whether upon their individual tastes in India and the US with a big dif- in the field of construction this industry is competitive the field of export and dump- ference. For the world’s largest of cement factories. In this or not? ing of some factories (given cement consumers names of regard export of technical A) Currently, develop- that new factories have heavy China, India and the US can and engineering services has ment of cement industry in hard and domestic currency be seen with China alone ac- gained a specific place in the Iran should take place with debts they mainly get involved counting for more than 50% export basket of the country. the aim of export with regard in unhealthy competitions and of the cement consumption in Ehdas Sanat is one of the suc- to the economic conditions. severely reduce export prices the world. With regard to the

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mentioned statistics there is share requires diversification a balance between the world of export markets. In other cement production and con- words, risk control of unex- sumption. The largest amount pected events in the markets of consumption and demand of the two main export desti- for cement is among Asian and nations, namely Iraq and Af- IMIDRO developing countries. Given ghanistan is imperative. It is the forecasts that are made also essential to maintain and over future of cement industry, increase market share of ce- cement production is expected ment exports (at least until the to make a growth of 4.3% an- time these countries have not Strategies and Policies nually in coming years. Fur- been equipped with manufac- thermore, a relative balance turing industries in the field). between cement production Even more, there is the need to 2. Growth of investment financial resources for the and consumption will remain ensure these countries towards in the establishment of mines mines and mining industries in the world in coming years. continuation of fruitful com- and mining industries chain IMIDRO is the sector Presently Iran, Turkey mercial transactions with Ira- units with modern technol- only government Planning for reduction and China are known as the nian cement producers. With ogy and high risk of investment costs three major exporter countries regard to Iraq’s severe need for 3. Development of over- developmental Utilizing facilities of of cement in the world. Iran, Iranian cement, perhaps its re- seas mines and mining indus- organization in investment insurance for as the world’s fourth largest duction will not be considered tries activities with an aim of mining activities and its cement producer intends to in a near future but for stabili- completing the value chain the field of mines strengthening in an effort to increase its production capaci- zation of Iran’s cement exports 4. Development of new and mining reduce investment risks in ties and turns into the world’s to other countries and increas- methods of providing finan- mining sector. third largest cement producer. ing its amount, the infrastruc- industries of Iran. Amir Sabbagh, IMIDRO cial resources in implemen- Assisting development Largest cement importers of tures which were announced tation of development plans of markets of companies the world include Iraq, Ban- above should be seriously pro- he Iranian Mines 5. Promotion of synergy, investment. Some of the pol- Supporting develop- gladesh, Iraq, the US, Afghan- vided for institutionalization and Mining Indus- efficiency, and competitive- icies of the organization in ment of capabilities and in- istan, etc. among which Iraq of cement exports. This will tries Development ness of the mines and mining increasing attractions of the frastructures for presence in with 14 million tons of imports enable us in future to preserve T and Renovation Organiza- industries mines and mining industries international markets in 2013 was the largest im- our share of exports to Iraq and tion (IMIDRO) is the only 6. Furthering of knowl- sector for further presence of Using capabilities of porter of cement of the world at the same time add the share in that year. The neighborhood of other potential markets to government developmental edge, applied research, and the investors are: subsidiary companies with of the world’s largest cement our exports in a sustainable organization in the field of the technology required by Development of infor- an aim of helping establish- exporter and the world’s larg- form. This is an issue which mines and mining industries the mines and mining indus- mation and communication ment of new units by inves- est cement importer create can be realized through wis- of Iran. The Organization tries infrastructures of mines and tors, especially foreign in- abundant opportunities and dom and hard work. has been formed in order to 7. Development of pri- mining industries sector vestors challenges for both the coun- On the whole, it can be meet the country’s needs for vate sector investment in Development of ex- Preparing the ground tries which require more in- predicted that in the calendar mines and mining industries mines and mining industries ploration activities for the formation of powerful vestigation and analysis. Cur- year 2025 (by taking into ac- products and processing activities and the relevant in- Planning and support and strong consortiums with rently Iran by possessing over count 100 million tons of do- while emphasizing on op- frastructures for the creation of the in- the participation of large Ira- 26% of the entire exports of mestic consumption) almost 20 timization of the economic 8. Development of hu- frastructures needed for the nian and foreign companies the region holds a more proper million tons of surplus produc- system in mining and related man resources in the mines mines and mining industries and supporting partnership position under the present cir- tion would remain which would industries and supervision and mining industries sector sector of the Iranian side with in- cumstances of both the coun- require appropriate means to over the use of mineral re- 9. Strategic marketing Trying to establish ternational and multinational tries (Iraq and Afghanistan) in export that amount. Further- serves and their sound and and development of export of proper business atmosphere companies. this field. In the 1404 Vision more, export of technical and effective exploitation. technical-engineering prod- and removing redundant reg- Plan it has been predicted that engineering services has attract- IMIDRO in an effort ucts and services ulations facing private sector In 2015 IMIDRO was a share of 42% of the target ed the attention of exporting to realize its mission and activities involved in implementation market will be put at the dis- countries for years as a substi- vision and on the basis of Considering the po- Support for entrepre- of 500 operational projects posal of cement producers in tute scenario for cement exports the plans of the government litical agreement reached in neurship in the mines and with an aim of realizing its our country. as they find their interests in ex- of ‘prudence and hope’ has Lausanne and Iran’s capabil- mineral industries sector targets and strategies through Considering that more port of such services. than 65% of Iran’s cement defined nine macro strategies ity and resources, in an effort Making prices of min- which a very good future is exports are destined to Iraq Ehdas Sanat Company as follows: to develop the country in line eral products transparent anticipated for the organiza- the basic question in this con- No. 56, Kalantari St., 1. Development of ac- with realization of its mis- through presenting them on tion and its subsidiary and text is that how long will this Gharani Ave., Tehran, Iran tivities of mines and mining sion, IMIDRO will provide the stock exchange affiliated companies and as a volume of exports to Iraq will Tel: (+9821) 88833855 industries which have com- good conditions for devel- Identification and fol- whole in the mines and min- continue? We know that main- Fax: (+9821) 88833861 petitive advantage in the less opment of investment, espe- low-up in order to facilitate ing industries of Iran. tenance of the existing market www.ehdas.ir developed regions of Iran cially in attraction of foreign new methods of providing

110 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 111 IMIDRO Exclusive

luminum, the second largest consumed Ametal in the world, is a soft and light but strong Aluminum, metal with an opaque silver- grey appearance and a thin- layer of oxidation, which is created on its surface as a result of exposure to air. Energy Its weight is approximately one third of steel or copper. It is malleable, flex- ible and easy to bend. Using this metal, alloys can be made Piggy Bank with a small amount of copper, magnesium, manganese, silicon and other substances, which have different useful of Southern characteristics. These alloys are used in manufacturing major components of airplanes and rockets. Aluminum has many Persian applications and is used in different fields including transportation, construction, packaging, electrical trans- mission lines and machinery Gulf States as well as in producing du- rable consumer goods. grade) the supply of which is change in the market equi- Corundum, emery, ruby not economical. librium conditions and as a and sapphire are the most result hopes increased regard- common naturally occurring Aluminum Globally ing price hike of this metal. forms of aluminum oxide However, some analysts be- (alumina). Rubies and sap- Currently more than 50 lieve that market condition phires are gem-quality forms million tons of aluminum is has not changed and contin- of corundum. Aluminum ox- produced in the world annual- ues moving forward with the ide is used in glass industry. ly and more than 600 million conditions of the previous Ruby and artificial sapphires tons of recyclable aluminum year. Price of aluminum expe- are used in laser to emit co- is believed to exist at world rienced a 15% cut in 2013 and herent swing radiation/ light. level. The first five alumi- plunged from $2040 to $1740 Aluminum is oxidized num producing countries of per ton. with great energy and thus is the world are China, Russia, The downward trend of used as fuel in missiles and in Canada, the United States and aluminum price continued devices generating heat. Alu- Australia. China alone pro- with the start of 2014 and minum is chemically reactive duces about 22 million tons currently the price is moving increased towards price hike costs and turned towards pro- minum market, producers will ternate growth. Consumption and cannot be separated from of aluminum per year and at at a lower level. Of course, it due to the withdrawal of some ductivity and by increasing be harmed as a result of price growth in the car manufactur- its ore, bauxite A120 using the same time is the largest should be considered that sup- production plants from the their research projects tried to As long as we are drop. In addition, the alumi- ing, military, aerospace, and carbon. consumer of aluminum. The ply of aluminum exceeds its market. Simultaneous with decrease the finished cost. In num industry’s permanent packaging industries will be Instead, the separation four other countries totally demand and this issue in addi- the price drop, major alumi- its plans, Alcoa has forecast to faced with surplus threat, that is to say energy significant. method of this metal is done produce about 11 million tons tion to increase in the metal’s num companies showed reac- reduce 10% of costs for alu- supply in the costs will probably become The auto manufacturing through electrolysis. The per year. About 10 percent of reserves, especially in China tion. For example, the world’s minum smelting and 7% of more challenging and produc- industry that still undergoes metal is oxidized in solution the total world production of and Canada, led to improper largest aluminum company, those for aluminum refining aluminum market, tion factors will face increased production growth will be and then is separated as pure aluminum belongs to the larg- operation of this metal in the Rusal, lowered its production by the end of 2015. producers will be costs. Therefore, producers considered one of the biggest metal. Therefore, to this end, est energy pole of the world, London market. by 9% and “Alcoa”, world’s harmed as a result will be forced to reduce costs downstream aluminum indus- the ore should first be placed the Middle East. This price reduction third largest aluminum com- Will Calm Be Restored of their raw materials. In the tries which has increased its within a liquid. However, Drop in price of alumi- caused a fundamental change pany, by 11%. In addition, ma- to Aluminum Market? of price drop. medium and long-term, glob- consumption due to the light bauxite has a high melting num over the past two years in the market equilibrium jor aluminum companies of As long as we are faced al consumption of aluminum weight, recyclability and oth- point (2000 degrees centi- resulted in fundamental conditions and thus hopes the world staged war against with surplus supply in the alu- will be accompanied by al- er capabilities of this metal.

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Probably, demand for alumi- 10 million tons. Qatar, too, is tion of aluminum is much tons of aluminum per year by num will be doubled by the accelerating development of more rational than transfer the year 1404 (2025). year 2025. China has current- its production capacity and of energy. In fact, if the ad- Under the status quo, the ly allocated 40% of the world currently is producing over vantages of aluminum pro- Iranian aluminum industry is aluminum consumption and 600,000 tons of aluminum. duction are divided into two considered a good opportuni- with the gradual arrival into Bahrain with a production of parts, the first priority will be ty for investment. Investment the consumption market of 890,000 tons and Oman with given to energy. For this rea- in this industry can be divided India, price of aluminum and 360,000 tons per year are son, countries enjoying the into three parts; first in devel- alumina will enjoy a higher among Iran’s rivals. Iran’s advantage of energy, includ- opment of downstream indus- competitive level. northern countries such as ing Iran, have an appropriate tries. Iran currently produces But, on the other hand, Azerbaijan Republic, Kazakh- situation for the development about 355,000 tons of alumi- the plan known as the energy stan, Ukraine, Russia and Ta- of aluminum industry. Activi- num and parts of the product price ladder which has been jikistan are also present in the ties in the field of aluminum are exported in the form of raised in China and confirmed world aluminum producers started in Iran in 1351 (1972- bullion. Investment in field by Chinese nonferrous metals club. Russia alone produces 73) with the establishment of of turning bullion into high industry institute is in its ini- 3.8 million tons of aluminum Arak Aluminum Plant. Then value-added products with the tial stages. The main objective per year. Other CIS countries Al-Mahdi Aluminum Plant aim of presenting to the mar- the Chinese government seeks totally produce about 700,000 with a capacity of 110,000 in implementation of this plan tons aluminum. Turkey, with tons and Hormozal with a is reducing surplus aluminum a capacity of 60,000 tons, is capacity of 147,000 tons per Currently more available in the market and also active in aluminum pro- year joined the aluminum than 50 million restricting it. According to ex- duction, which of course is production circuit. perts in this industry, when the mainly through recycling ac- Now the country’s pro- tons of aluminum said plan becomes operational tivity. Due to the advantages duction capacity by includ- is produced in the it will leave general and great of gas, it is predicted that ing lines 1 and 2 of Iralco is impacts on aluminum indus- about 40% of the world alu- 487,000 tons per year. Iran’s world annually try. The energy price ladder minum production would be production in 1391 (2012- and more than will push out of the market realized in the littoral states 2013) was about 355,000 companies which pay little of the Persian Gulf within the tons. In global ranking 2011, 600 million tons attention to the environment next decade. Iran grasped the 22nd place. of recyclable and high energy consumers. Its ranking was promoted to Energy has the highest cost Aluminum in Iran 20th in 2012 and in the latest aluminum is for those involved in the elec- ranking increased to 19th put- believed to exist at trolytic aluminum industry The reason that this met- ting France behind. In 2014, and holds 45% of the total al is important for the Iranian Iran produced approximately world level. production cost of the prod- Mines and Mining Industries 355,000 tons of aluminum and uct. Therefore, in order to re- Development and Renova- it is predicted that by 2016 it kets in Iran, the region and duce the production costs, the tion Organization (IMIDRO) will surpass Oman and gain the world is one of the three biggest challenge is energy. is that energy has a key role the 18th position in the world. divisions. The second part is in its finished cost and Iran In case programs are carried related to the development Aluminum in the Region has the biggest gas reserves out based on the projected of aluminum industry and in the world. Also, it should targets and with respect to the creation of production capac- Currently about 10% be admitted that this metal is current capacity of the coun- ity. Iran plans to increase its percent of the world produc- among clean industries de- try, surpassing Germany and capacity to 1.5 million tons tion capacity of aluminum spite its energy consumption. promoting to the 17th place per year therefore construc- comes from the Middle East On the other hand, experts would not be out of reach. tion of aluminum factories region. Iran is considered one have dubbed aluminum as Other aluminum projects un- is one of its objectives. The of the countries with a long ‘energy piggy bank’. The rea- der implementation in Iran third section is also related to history in the regional alumi- son behind such a description are Jajarm with a capacity of primary materials. To produce num industry. Saudi Arabia is is that due to its high share of 36,000 tons per year, South aluminum, Iran needs to sup- working on a plan to develop finished cost of energy,- alu Aluminum with 276,000 tons, ply primary materials such as its capacity up to 10 million minum can absorb the energy and Masjed Soleyman Alu- alumina powder and bauxite. tons per year. The United value in itself, make it main- minum with 175,000 tons. In Investment and participation Arab Emirates with a produc- tainable and exportable. total, aluminum production in the supply of the materials tion of 1.8 million tons stands It is observed in the de- capacity of Iran will be equal is also a proper way for in- in the 6th place in the world. velopment strategies of alu- to 975,000 tons per year by vestment in Iran’s aluminum It has under implementation minum industry at the world 1396 (2017-2018). According industry. a plan to increase its produc- level that transfer of primary to the Vision Plan, Iran should tion capacity to 4 and then mineral materials for produc- produce at least 1.5 million

114 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 115 IMIDRO Exclusive Iran Alumina Co. Introduction atic method was launched for this project with the help of Due to the unique fea- the United Nations Industrial tures of aluminum and its stra- Development Organization tegic position in the world, its (UNIDO) after the victory of application increases day by the 1879 Islamic Revolution day in many industries partic- and during the years 1362 ularly in industries with high (1983) up to 1369 (1990). technology; as a result market Complementary studies demand for this metal has in- were conducted for this project creased considerably. with the assistance of Aluterv With regard to the pro- Institute of Hungary and finan- jections made for high vol- cial support of UNIDO. Labo- ume production of this metal ratory tests were conducted at in development plans of the Aluterv and at Wami Institute country and establishment of of former Soviet Union and several factories for produc- were completed between 1365 tion of aluminum bullion, im- (1986) and 1367 (1988) which portance of production of this indicated that the Bayer-disso- strategic metal becomes more lution tube method is prefer- obvious. able both in terms of produc- The basic and main ma- from the sea level is between tion and investment costs for terial for production of this 1000 and 1800 meters (Zou The result of Jajarm bauxite. With regard metal is aluminum oxide Anticline). The longitudi- sampling from to the process of technologi- (Al2O3) with high purity grade nal expansion of the bauxite cal developments it is among Touraj Zare, Head of Iran Alumina Company and the only producer of alu- mines of Jajarm which are lo- Jajarm bauxite modern development meth- mina powder in the country is cally called Gol Bini, Tagoei mines indicated ods. Iran Alumina Company (Ja- and Sang Tarash from west to In the years 1367 (1988) jarm Complex). east is about 17 km (expan- that the quality to 1369 (1990) technical- Geographical situation sion of Bol Bini 4.7 km, Zou of its bauxite economic studies for alumina of Jajarm and the bauxite mines 3.3 km, Tagoei Abouy production from Jajarm baux- Czechoslovakia and coopera- a year (2003) it started its for- Using local knowhow value added than alumina and mine of the city: 5 km and Sang Tarash about was suitable ite ore through Bayer-dissolu- tion of the Chepos engineer- mal operation by using Jajarm and expertise for the repair of have their own consumers. The city of Jajarm 3km). enough to justify tion tube method with the co- ing company, won the tender. bauxite. special equipment and manu- Establishing alumi- is located in southwest of establishment operation of Aluterv Institute After failure of Technoexport After termination of un- facturing some parts in an ef- num bullion production unit North Khorasan Province Historical Trend of Estab- of Hungary were conducted in launching the production dertakings of NFC all the op- fort to reduce dependence on with regard to the proper in- (approximately 165 km lishment of Alumina Plant of an alumina for a 150 thousand ton unit. In line due to wrong design, the erational stages (production, imports. In this regard refer- frastructures and reduction southwest of the center of the refining factory in this regard a large-scale pilot company was evicted. In or- maintenance and repair) are ence can be made to the re- of finished costs for the- pro province) in the northern edge In the pre-revolution sample was processed in the der to prevent further delay in now done by Iranian experts. pair works on (high pressure) duction of aluminum in this of the desert. years in order to conduct stud- its neighborhood. laboratory of the institute and the operation of the project at pumps of GEHO type inside region which, despite readi- Jajarm has connec- ies on production of alumina Fositiv diamond factory of that juncture NFC Company 1-Performance and de- the complex as well as manu- ness of the highly appropriate tions with the cities of Shah- from bauxite ore, exploration production of alumina from Hungary and the parameters from China was selected to velopment at Iran Alumina facture of Flender gear box ground, due to lack of sup- roud, Sabzevar and Bojnourd operations were conducted on bauxite. Therefore detailed for the proposed technology remove the problems and op- Company in recent years and also parts of Warman and ply of financial resources its through asphalt road. Tehran- bauxite deposits of Jajarm, Si- exploration was conducted on and technical economic esti- erate the factory. Taking reformative Schner pumps which were completion and operation was Mashhad railway passes 37 ahroudbar and Ganou. A com- this mine. mates for the establishment of In the calendar year 1381 measures and increasing supplied from outside the postponed for a few years. km south of the city of Jajarm. parison between these mines The result of sampling the industrial unit were pre- (2002) after implementa- productivity for further country. Follow up for receiv- Bauxite mines of Jajarm with regard to the amount and from Jajarm bauxite mines in- sented. tion of the required reforms alumina powder production Producing diversified ing standard certificate for the are located approximately 15 quality of deposits as well dicated that the quality of its From among the invited in the valves, flash tanks and and reaching the nominal products for increasing value company’s products in line km northeast of the city of as laboratory technological bauxite was suitable enough firms Technoexport Company addition of digesters, etc. the capacity. Reaching a capacity added. This has been accom- with presentation of the two Jajarm. The mining region is tests on exploratory samples to justify establishment of an which had participated in the production line became op- of 252000 tons of alumina in panied by the production of alumina and hydrate products in a mountain range extended specified that Jajarm mine en- alumina refining factory in tender on the basis of technical erational with the imported the year 1393 (ended March Alfa alumina and later fine of the company to the stock east-west the height of which joys a superior quality for the its neighborhood. A system- knowhow of Ziyar factory of bauxite (from India) and after 20, 2015) hydrates which have more of commodities which can be

116 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 117 IMIDRO Exclusive lmahdi Aluminium Company, the greatest investments ever made in located in Persian Gulf Almahdi Iran. This indicates that our industries considered a very good and plan for Persian Gulf Alumina Special Economic Zone near possess the potential as much as required Continued from page 123 reliable marketing method Bandar Abbass the center of for the progress of the country. together with more real price 4- Countries with Bet- and zinc are Asia and Europe. HormozganA province, was established Aluminium for the sale of the company ter Position to Export Baux- A significant part of the pro- in July 1990 with an approximate Raw Materials: Part of the raw materials products. ite to Iran duced concentrate is also ex- investment of 1.5 billion USD, targeting required for Almahdi Aluminium Smelter India’s bauxite is one of ported. There are two reasons production of 110,000 Mt aluminium Complex: are supplied from domestic market 2- Iran Alumina Com- the existing resources for im- why producers prefer to exper year increasable to 330,000 Mt/y. (Iran Alumina Co.) and remaining part pany Project for Bauxite port to Iran. Due to high alloy port this product in the form The first phase was inaugurated in 1997 from foreign sources. There’s hope that Exploration Sector (with regard to the experience of raw material: 1. The need and it reached by early 2002 to half The Greatest with execution of Persian Gulf Alumina Acceleration of the of using this type of bauxite for high investment to estab- capacity using 120 cells in operation. The Project, the total required alumina could trend of activation of bauxite in the primary operation of Triple Access lish ingot factory; 2. Environ- erection of 2nd loop of line one was started be supplied from domestic sources, resources of other mines in the alumina production line in the mental problems for receiving in 2002 and completed in May 2005. and Most though some materials such as Cryolite country for helping extraction company) capability of using the required permits. This is In June 2006, the 2nd phase, called and Aluminum fluoride should still be while lead is used in different and sustainable production domestic low alloy bauxite in hereafter Hormozal, was started with supplied from abroad. industries and with the devel- of bauxite. Currently in addi- the case of homogenization an investment of 600 m euros. The Advanced opment of downstream indus- technology of 2nd phase was D20 with Energy: One of the most important tion to exploratory measures and mixture will be possible. tries its growing application the line current of 230 kA and 228 cells and the most necessary resources on Mandoun mines in Koh- Using bauxite resourc- and increase in employment aiming annual production of 147,000 Mt for aluminum production is energy. kiluyeh and Boyer Ahmad, es of Afghanistan in case of Aluminum will be witnessed. Meanwhile, aluminium. Despite the necessity of power plants mines in Kerman and Yazd removal of security problems application of zinc in different With cooperation of Iranian experts beside aluminum smelters, the amount provinces are in the stage of in that country. Afghanistan industries such as galvaniza- and foreign EPC contractor, FATA Smelter in Iran required for Almahdi Smelter is to be receiving operation permits. bauxite is a continuation of tion and production of dif- Hunter s.p.a from Italy, the whole project supplied from national power network. Also, with the discovery and Iran’s bauxites and due to the ferent alloys has doubled the finished in 40 months and inaugurated In the meantime, following the policies operation of high alloy Taash closeness of the distance has importance of this metal. in October 2009, entitling the important practiced by IMIDRO in Persian Gulf and Ganou mines in Semnan priority over other foreign re- The employment oppor- achievement of Hormozal, its being Special Economic Zone, Nama Power Province after mixture we sources. tunity this metal has created among the few national industrial projects Plant with a capacity of 1500Mw is being will be able to use a huge vol- Bauxite resources of in Iran is 40 thousand direct getting operational at the appointed time, ready to start up. Meanwhile, in January ume of low alloy deposits of Guinea Conakry if the prob- All articles, and 120 thousand indirect which is certainly owing to the careful 2015, the construction of a 500 Mwh Jajarm bauxite mine. lem for transportation from jobs which will triple with the management, programming, supervision power plant with mutual cooperation Minimizing the ex- mine to the port in that coun- interviews and growth and development of and execution. For the time being 180 and investment of IMIDRO and Ghadir ploratory digging network in try is solved. downstream industries. cells are in operation and the plan is to Investment Company has been started Jajarm bauxite mine for the promotional items As it is obvious, devel- achieve full line capacity by mid-2015. as the result of which Almahdi shall get completion of information 5- Status of Transpor- opment of downstream indus- This will change the position of Almahdi independent for its power supply. and assessment and accurate tation Industry Particularly available at tries of lead and zinc in Iran Aluminium Company as the greatest and The Symbol of estimation of results and plan- Railroad in Mines and Min- provides a proper opportunity most advanced aluminium smelter in Iran Human Resources: Hiring the manpower ning for long-term production ing Industry for international investors and and shall transform Bandar Abbass to the Determination and required for Almahdi is among its with high accuracy. This will Our company uses entrepreneurs. Considering main center of aluminium industry in the advantage. For that purpose the employees be highly fruitful in this sector the railroad network in the the value added lead and zinc country. Willpower for Progress are chosen from among outstanding and especially in underground ex- country (Tehran-Mashhad) concentrates and ingots bring talented graduates of the country through traction and reduction of prob- for supplying the raw mate- from exports, investors will The Significant Features of both written examination and interview, lems ahead. It should be noted rials and exporting its prod- make good profits and enjoy Almahdi Aluminium Complex and then are trained to get familiar with that the outstanding volume ucts. The nationwide railway legal support of the Iranian D18 and D20 technology to take charge of Jajarm bauxite deposits through the sub-branch line in government. Advanced Technology: Among alumi- of major operational responsibilities. should be extracted by apply- a length of 30 km is connected IMIDRO through devel- num industries in Iran, Almahdi possess- Now Almahdi is providing 2000 direct opment of exploration and ing underground method. to the complex and thereby is www. es the most advanced technologies, which job opportunities. required infrastructures need- Finding the potential of linked to Mahshahr port and iraninternationalmagazine have been adopted in compliance with ed by the mining sector and the policies of Iranian Mines and Mineral Bandar Abbass, Center of Aluminum bauxite deposits in the neigh- Bandar Abbas in the south .com creation of special economic Industries Development and Renovation in Iran: Having 2nd phase operational, borhood of central Alborz and Turkmenistan and CIS metal and mineral industry Organization (IMIDRO) to make use of the total aluminum production in Bandar and Zagros through modern countries in the north (in ad- and zones in Iran has provided modern and updated technologies. From Abbas shall reach 250,000Mt/y. In exploratory systems such as dition to the asphalt road). It favorable conditions for in- among the advantages of its technology other words, considering the nominal www.iraninternational.ir remote sensing. should be noted that transpor- vestors. Presence of active one may mention decrease of anode con- capacity of 180,000Mt of Iran Aluminum tation costs are a major part of and interested private sector sumption per ton of aluminum, decrease Co. (Iralco), more than 55% of total 3- Proposed measures the costs related to the supply and companies in lead and zinc in- of energy consumption from 15.9Kwh aluminum in Iran shall be produced in for supplying raw materials of the raw materials. dustries of Iran who are ready to 14,5Kwh for producing 1 kilogram of Bandar Abbas. That serves as the prospect required by aluminum in- Iran Alumina Company www. for bilateral cooperation with aluminium, as well as increase of current for growth and development of related dustry in the country foreign partners, is among ad- efficiency from 90% to 94% in D20 tech- subsidiary industries in the area. In the Tel: (+9821) 88051403-8 iraninternationalmagazine Expansion of alumina .ir vantages of lead and zinc in- nology. meantime, the strategy of IMIDRO is to producing units and accelera- http://iranalumina.ir dustries in Iran. reach the capacity of 1.5 Mt/y by 2025. tion of development of a new [email protected] Foreign Investment Encouragement: This will lead Almahdi to be among key The project has succeeded to encourage www.almahdi.ir market players of the region. foreign investment which has been among [email protected] 118 IRAN INTERNATIONAL, June 2015 IMIDRO Exclusive

aluminum by the year 2018 is The Most Advanced expected to be around $2450. Reasons for Rapid Growth of Aluminum in Persian Gulf Littoral States Aluminum Production During the recent years due to an increase in global energy prices, most aluminum producing companies have Complex in Iran decided to build their aluminum plants in countries with cheap and accessible energy. ehdi Qadami, Therefore, the geography of Managing Director aluminum industry is chang- Mof Almahdi Alumi- ing. At present about 6.5 mil- num Company, in an inter- lion tons of production capac- view replied to our questions ity of crude aluminum units in concerning development, at- countries without cheap and ing this important and strate- per year, it is not sufficient to traction of foreign investment accessible energy are on the gic metal but inattention to meet demands of the industry and future challenges of the verge of closure and transfer the following issues has faced The Persian Gulf and therefore provision of this industry. to countries with cheap and aluminum industry in Iran region due to important material through abundant energy. with certain challenges: participation in the extraction Almahdi Aluminum The Persian Gulf region the existence of of bauxite reserves of other Complex is the largest and the due to the existence of abun- 1. First challenge: Pro- abundant and countries owning such de- most advanced aluminum pro- dant and cheap natural gas re- vision of stable and inexpen- posit is vital for the develop- duction complex in Iran. Over serves is an appropriate place sive energy cheap natural ment of aluminum production the past five years the com- for production of low cost Lack of enough atten- gas reserves is an capacity. pany has succeeded in estab- electricity. Since the energy tion to the issue of sustainable Considering that the op- lishment of a new production used in the aluminum industry electricity supply is another appropriate place eration permit for 600 mil- line (Hormuzal), operation of is close to 25% of the finished challenge facing the industry. for production of lion tons of bauxite reserves anode rod unit and using the cost of aluminum, therefore This means that aluminum in Guinea has been granted most advanced technology in this important issue together producing units should have low cost electricity. to Iran it has put our country aluminum production and in- with supportive policies of the power plants for providing in a highly proper and com- creasing its capacity from 110 said governments especially sustainable electricity beside sumption for the production petitive position in the world thousand tons to 250 thousand in the field of supplying cheap aluminum production lines. of one kg of aluminum fac- for production of this metal tons. At present with a produc- energy, economic stability, On this basis, inatten- tories in Iran’s plant is about at regional and global level. tion of close to 180 thousand investment security, support tion to sustainable power sup- 16 kw/h which has an energy The required investment for tons of bullion it accounts for launched next year for development of aluminum by 2020. for foreign investors, pres- ply through exclusive power waste of 2 kw/h as compared processing bauxite and trans- about 50% of the country’s 2-3) Construction of alu- and billet production lines. A glance at aluminum ence of creditable aluminum plants as an inseparable part to the global average and in 5 ferring it into alumina powder production capacity. mina powder storage silos with imports by Iran from the cal- producing companies in these of aluminum production units kw/h in comparison with the will create a vital leap towards a capacity of 80 thousand tons Aluminum Prices and endar years 1385 (2006) to countries, etc. have resulted in in the past years has caused most advanced technologies development of this industry. Development Programs 2-4) Modification of Consumption Forecasts 1392 (2013) shows a growth rapid growth of aluminum in- problems for the industry. in the world (for the produc- Meanwhile, conclusion The most important aluminum production line 1 Based on the surveys of 7.5%. With the improving dustry in these countries. Energy can be referred to tion of one kg of aluminum). of long-term contracts with an development programs of (Almahdi line) in an effort to conducted, aluminum output trend in Iran’s global relations as the raw material and feed Therefore, establishment aim of meeting alumina de- Almahdi Aluminum Company reduce energy consumption in the world in 2013 in com- and growth of its industry de- Aluminum Industry and and is not solely considered of aluminum factories by us- mands required in this indus- are as follows: and increase efficiency of re- parison with 2012 recorded a mand for aluminum will also Challenges Ahead of Iran the energy carrier and an ele- ing new technology and sup- try can be a viable solution in 1-2) Based on the Vi- habilitation boilers growth of 6% and reached 50 increase over the incoming Investigations show that ment for consumption. The plying electricity from gas the medium-term. sion Plan (2025), Almahdi 2-5) Construction of 500 million tons per year. Major years. aluminum industry is con- most modern technology now seems imperative. However, using oil Aluminum Company intends megawatt combined cycle aluminum consumers are Chi- Due to a lack of balance sidered one of the most im- in the world is the Pechiney wastes for the production of to develop its aluminum pro- power plant for supplying the na, Europe and North Ameri- between global production portant strategic industries in technology of France in which 2. Second challenge: coke needed for manufacture duction lines up to one million required energy for the complex ca. During the next 10 years and consumption (65 million the world and this has led to the amount of consumed elec- Inattention to completion of carbon anodes through es- tons per year by the year 2025 Almahdi Aluminum the volume of aluminum con- tons of production against the production of the metal in tricity for production of one kg of supply chain inside the tablishment of relevant facto- 2-2) A project for pro- Company intends to use for- sumption in Asia is expected 70 million tons of consump- most advanced countries, de- of aluminum is about 11 kw/h country ries, construction of plants for duction of at least 30 thousand eign investors and creditable to rise almost 17%. tion) by 2020, it is anticipated spite having no advantage in which is 4 kw/h lower than the Bauxite is considered the production of carbolite and tons of aluminum billets and companies with high technol- Aluminum consumption that world price of aluminum production. average electricity consumed main material for aluminum aluminum fluoride will lead to different highly consumed al- ogy in an effort to provide in the Middle East and North will rise. Currently, the price Iran too by having a pro- for the production of one kg of production. Given that Jajarm the completion of the supply loys by the country’s indus- financing and also enhance Africa is about 3.5% of the of aluminum is about $1950 duction capacity of more than aluminum in the world. is the only unit for production chain and create an advantage tries the study for which has competitive power and reduce global consumption which is per ton at the LME Stock Ex- 475 thousand tons of alumi- According to the report, of alumina powder with a ca- in aluminum production in- been finalized and it will be production costs in the projects expected to increase to 7.9% change and average price for num has embarked on produc- this amount of power con- pacity of 200 thousand tons dustry.

120 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 121 IMIDRO Exclusive

Lead and zinc are among industries that enjoy relative Iran by possessing advantage in Iran but so far Lead and Zinc the government has not made 3% of the total vast investment in this field. world reserves of At present, the considerable growth observed in the lead lead and zinc is the and zinc industries, is due to fourth producer Industries in the activity of the private sector. Iranian Mines and Min- of lead and zinc ing Industries Development concentrate in and Renovation Organization (IMIDRO) and the company Asia after China, World and Iran for procurement and produc- Kazakhstan tion of mining substances in Iran have prepared the ground and India. for the development of the pri- inc is a white and bright Nonetheless, China stands vate sector. They are presently encourage investors to invest metal with a bluish first in terms of lead produc- preparing the huge and unique in those industries. Zgray appearance and is tion and Australia is next. Ma- Mehdiabad mine for further In the west of Iran, es- not found in the nature as an jor lead producing countries development of this industry. pecially in Zanjan, there are a element. It has low toxicity are China and then Australia. The high purity and large number of lead and zinc and is flammable in powder Among the world top ten com- structure of lead and zinc in concentrate factories. On the form. It is used in many indus- panies which produce about Angooran mines (in Zanjan other hand, due to the produc- tries such as manufacture of 47% of the total world output Province) and also volume of tion cut at Angooran mine, the kitchen utensils, some alloys of 11.5 million tons, Nayer lead and zinc mine reserves in output of these units has been such as brass and bronze and Star of Australia with 9.2%, Mehdiabad (in Yazd Province) faced with challenges; there- in battery production. Korea Lead Company with are unique in the world. The fore industrialists have de- About 50% of the entire 8.4% and Canada Strata with amount of lead and zinc re- cided to import raw materials lead in the world is used in pro- 6.2% stand in the first to third serves in Iran is about 300 mil- from Turkey which has been duction of galvanized metal, places. China alone produces lion tons of iron ore of which an appropriate decision. 18% in brass and bronze and about 4 million tons or 34% of annually an average of about Of course, due to some 13% other alloys which make the world’s total lead output. 5.1 million tons are extracted. customs and transit problems about 80% of the total lead Iran by possessing 3% of This figure constitutes about with Turkey, some difficulties in the world. Of the remain- the total world reserves of lead 5.2% of the world production. have surfaced. Meanwhile, ing 20% some 9% is used in and zinc is the fourth producer Currently, Iran’s lead and zinc some of the Iranians active in chemical products, 8% in cast- of lead and zinc concentrate in concentrate production is ap- the mine and mining industry ing industry and the remain- Asia after China, Kazakhstan proximately 700thousand tons sector by using the Iranian ing 3% in other industries. and India. Also, in terms of per year. technical and engineering Lead is a gray, soft and heavy lead production it stands in the The production capacity know-how and its experience metal. It does not catch fire fifth place in Asia. According of zinc ingots in the country in production of lead and zinc, and is toxic in the form of to data released by the Lon- is 450 thousand tons and lead have embarked on joint invest- powder or vapor. It has little don Metals Market, Asia pro- ingots 420 thousand tons per ment inside Turkey and estab- electric conductivity and ab- duces about 54% of the world year. The concentrate produc- lished a factory for production sorbs sound waves well. Lead lead followed by Europe with tion capacity of lead and zinc of lead and zinc concentrates is used in production of stor- 23% Lead, after iron, alumi- in Iran is over 2 million tons and ingots in that country. age battery (car battery), sol- num and copper is the fourth of which only 35% to 40% As for export of lead and der alloys, internal coatings metal that is widely used in are active because of shortage zinc it can be said that only of telecommunication cables the world. of raw materials. However, 80 to 100 thousand tons of and production of certain Experts consider Iran in with activation of Mehdiabad produced zinc ingots and 100 chemicals, especially tetra- terms of geology and structure mine a great part of raw mate- to 110 thousand tons of lead ethyl lead (for leaded petrol). to be in possession of several rial shortage in lead and zinc ingots are consumed domesti- Metal deposits of lead are important lead and zinc min- production industry will be cally and the remaining are ex- mainly located in Austra- eralization poles such as the removed. With regard to the ported to target markets. This lia and then China, Russia, zones in Sanandaj, Sirjan, Al- rich lead and zinc reserves in means export of 50% to 60% of Peru and Mexico which rank borz and central Iran where Iran and the proper technical the products. The target mar- second to fifth. Also, the US large mines such as Angooran, knowledge of the industry ac- kets for export of Iran’s lead stands in the 6th place in Mehdiabad, Haft Emarat, tion must be taken to develop terms of global lead reserves. Irankouh, etc. are located. lead and zinc industries and Continued on page 118

122 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 123 IMIDRO Exclusive

ments. As we know, the country has a long and acceptable background in the field of Anguran Lead exploration and processing of lead and zinc mines. In case Mehdiabad Lead, advantage is taken of the presence of investors and owners of modern technology of and Zinc Complex the world it can be helpful in Zinc and Barite promoting our knowledge and increasing productivity in this area.

What is your fore- Mining Complex cast about the future of the world’s lead and zinc mar- min Safari, Managing Director of Mehdi- ket? What will be Iran’s Iran after China, share of the international Aabad Lead, Zinc and market? Barite Mining Complex re- Kazakhstan A comparison between sponded to our questions on trends shows that in the next the status of the Iranian lead and India is the five years the lead and zinc and zinc mines in domestic fourth largest market will not experience and foreign markets as well as zinc producer in any serious turbulence and the role of mines in “economy Establishment of a barite exploitation of mines in the this issue can be somehow re- of resistance”: processing factory with an Asia and this is at country such as Mehdiabad assuring for investors in this initial capacity of 1 mil- a time when Asia lead and zinc have on the sector. Iran with regard to hav- Would you please elab- lion tons within 18 months economy? ing mining potentials can pre- orate on development plans accounts for 54% With regard to the unfair serve its share in the market in for Mehdiabad lead and What is the status of sanctions paying attention to comings years. of the total world zinc? downstream lead and zinc domestic advantages is an ob- Given the outstanding industries in Iran? What are production. vious issue and Iran by pos- What are your plans for reserves of Mehdiabad mine, your proposals for increas- sessing giant mineral deposits expansion of explorations in has a strong mainstay such as ansour Shabani, and zinc section? What are Anguran? including 342 million tons of ing the value added? accounts for 54% of the total Managing Director Employment your recommendations? Exploration within An- lead and zinc with a medium Given that Iran enjoys world production. Obviously the mining sector which has of Anguran Lead Although in recent years guran mine region is continu- alloy of 5.5% zinc and 2% advantages due to its lead with the operation of plans of been aid further attention M of qualitative lead as well as 113 million and zinc deposits, certainly Mehdiabad Complex the ex- in recent years. Therefore, and Zinc Complex Answered laudable activities have been ing for the second and third Our Questions on Production manpower and conducted in this regard, it is mineral substances and soon tons of barite with an average with the preparation of the re- isting balance will change in we are on the threshold of a Status: recommended that accessible permission will be obtained specific weight of 3.8 gr/cm3, quired grounds for the private Iran’s favor. great revolution in the mines using capability of criteria should be defined in for the exploitation of the sec- the following plans have been sector to develop downstream Meanwhile, currently sector. God willing, with the Would you please elab- the private sector the presence of qualified con- ond mineral substance (trav- formulated for extraction and industries, a proper value China, India, South Korea and increase in the volume of ex- orate on the performance sultants. Moreover, employ- ertine) with a reserve of 31 processing of the reserves and added will be supplied for the Turkey are the main markets traction of minerals, estab- of Anguran mine in recent in upgrading the ment of qualitative manpower million tons. The exploration soon a great evolution will be economy and the government for export of Iran’s zinc and lishment of processing and years? operations will be and using capability of the permit for the third mineral witnessed in the lead, zinc and will provide the required at present European market is downstream factories in addi- Since the beginning of private sector in upgrading the substance, florin, is underway. barite industries of the coun- leadership and facilities in our main target. With regard tion to creating job opportu- its operation in open form, effective. operations will be effective. Meanwhile, explorations try. On this basis development this regard. to barite, due to the proximity nities we will be able to pre- that is to say from 1358 to in Anguan-Zarshuran area is plans for Mehdiabad Mining of Iran to the oil rich Persian pare for economic growth of 1385 (1979 to 2006) some tons, respectively. It should be What mutual achieve- underway by the company Complex are as follows: Iran possesses a prop- Gulf regions and the need of the country. In other words, 19.272.210 cubic meters of noted that in the past year we ments presence of foreign in- which with regard to the loca- Collection of 118 mil- er position in the world in oil regions for barite, Iran can paying attention to the min- reached the figure 8 million tailings and 6.950.065 mil- vestors in our lead and zinc tion of the region in Sanandaj- lion tons of tailings in the terms of lead and zinc de- take a major share in inter- ing sector and exploitation of lion tons of minerals have cubic meters in tailings and 1 sectors can bring for Irani- Sirjan zone and existence of first 4 years posits. Do we have a good national market through op- mine and mining industries been extracted. These figures million tons in extraction of ans and foreign partners? valuable lead, zinc, copper Establishment of a share in the international eration of the one-million-ton projects are the prerequisites since the calendar year 1385 minerals which has been un- Presence of foreign in- and gold mines in this zone, 100-thousand-ton factory market? Do you have any barite factory and by creating for implementation of “econ- (2006-2007) to date that the precedented in the record of vestors with external financial it is expected that outstanding omy of resistance.” mine has been brought un- the mines and is unlikely to be resources and with an aim of mining reserves will be dis- for zinc bullion within 3 recommendations to boost a competitive advantage. der the management of Iran repeated in future either. transferring technical know- covered. years this share? Establishment of a Iran after China, Kazakh- What is the role of mine Mehdiabad Lead, Zinc and Minerals Production and Sup- how can have a significant Barite Mining Complex ply Company have amounted What is the status of influence on exploration and Anguran Lead & Zinc Co. 100-thousand-ton factory stan and India is the fourth in realization of the “econo- http://mehdiabadmine.com to 49.249.414 million cubic productivity in the country’s improvement of mining and http://angouran.impasco.gov.ir for zinc concentrate within largest zinc producer in Asia my of resistance”? What meters and 5.825.060 million mines especially in the lead processing of valuable ele- Tel: (024) 33027107, 36526610-1 3 years and this is at a time when Asia effects will exploration and Tel: (+9821) 86031471

124 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 125 IMIDRO Exclusive Mooteh Gold Complex

ohammad Reza Ahmadi, Manager Mof Zarshouran Gold Complex, in an interview ameed Montazeri, answered our questions on Managing Director the success operation of gold of Mooteh Gold Com- mines and extraction and H plex at a press conference replied to questions on production status of the complex.

Would you please elab- Zarshouran Gold Complex orate on the performance and development of Mooteh marketing in international ment of Zarshouran Gold is nology available it is trying to Gold Complex in previous markets. Details of the to increase production capac- Zarshouran establish contact with coun- years? interview are as follows: ity to 6000 kg of gold bullion Gold Mining tries taking advantage of the A- The following table No. Performance in Production Extraction per year. Moreover, a call for technology in coming years. shows the performance of the 1 1387 (2008 - 2009) 300 167820 With reference to the let- evaluation of a qualified con- and Industrial Also, strengthening of the re- complex over the past five 2 1388 (2009 - 2010) 341 267950 ter No. 32150 dated 8 March tractor has been published in search and development sec- years, including production 3 1389 (2010 – 2011) 285 88620 2015 on the basis of the orders the media and through vir- Complex by tion is among future measures and extraction: of the Chairman of the Board tual websites. Future plans relying on its of this complex. The cause of the drop 4 1390 (2011 – 2012) 285 101430 of Governors on the active of the complex are research in 1392 is related to reduc- 5 1391(2012 -2013) 250 199530 presence in the Mines and and development activities innovative forces, How do you predict fu- tion of reserves and low grade 6 1392 (2013 – 2014) 236 193000 Mining Industries special bul- with different dimensions, has launched ture of gold market? Will and also lack of possibility to letin answers to the questions especially in nanotechnology. gold return to its peak once exploit other reserves in the Explorations in gold- production. In what other indus- are as follows: Meanwhile, exploration op- preliminary again? region. But by following a rich areas of Mooteh region tries, except for gold and erations for drilling of 10,000 studies in the field In its latest report the recent agreement with the Reconstructing and What are Iran’s capa- jewels (ornamental), de- What are the plans of meters have been included in World Bank has forecasted Department of Environment completely repairing dust col- bilities in developing pro- velopment of downstream Zarshouran Gold Complex the plans of the complex for of nanotechnology. that the price of gold in 2015 and extraction from the new lector after 13 years duction of bullion industry? industries and creation of for the calendar year 1394 the coming years. will face relative decline. The anomaly through coming What is the status of foreign value added is possible? (March 21, 2015 – March gold in Iran? world gold which these days years, we will witness a rise in Is Iran’s gold produc- investment in this sector? Application of gold ex- 20, 2016)? Is it possible for Iran Development of the tech- is faced with the challenge of production. tion industry competitive in With regard to the emerg- cept for decorative items is On the basis of the plan- to maintain presence in the nology for production of gold increase in interest rates due B- Development projects terms of finished price? ing gold production industry possible in manufacture of ning and considering efforts of gold mines of other coun- has different mechanisms such to pressure on the US dol- which have been implemented Given that production from ore measures which can electronic and computer parts. EPC contractor for the provi- tries such as Africa? as transfer of technology from lar is gradually experiencing in the past include: of gold bullion is an emerg- be taken for purification of Gold alloys are also used in sional delivery, production of With regard to the exper- countries enjoying that tech- price fall. However, in the past Development and im- ing industry in Iran numerous bullion, using minerals with thermocouples, the outer hull 1.5 tons gold bullion and 400 tise of efficient and capable nology or support for the re- month have declined. plementation of factory pro- measures which can be taken low alloy for feeding produc- of the spacecraft and other kg of silver is anticipated for Iranian contractors in the field search and elite people in this duction line and conducting for the development of gold tion factories, recovering of aerospace industries. Medi- the year 1394. of extraction and processing active field. Zarshouran Gold Zarshouran Gold Complex preventive maintenance bullion production, including gold from low alloy minerals cal and dental uses are among of gold reserves this possibil- Mining and Industrial Com- Address: Second floor, No. 154, Industrial automation production and supply of gold and extraction of gold from other applications of gold. What is Zarshouran ity strongly exists. plex by relying on its innova- Taleghani Ave., Tehran, Iran of the production line and bullion in different weights tailings dam by relying on the Gold’s plan for future devel- tive forces, has launched pre- monitoring and sizes, beautification of global knowledge of process- Mooteh Gold Complex Telefax: 021-88301752 opment? What recommenda- liminary studies in the field of Construction of a new bullion, global branding such ing in foreign investment in Email: [email protected] http://www.mouteh-gold.com The first measure of the tions do you have for tech- nanotechnology. Meanwhile, tailings dam with a capacity of as the Swiss bullion, an check- return for the reduction of the Tel: 031-45336240-3 complex for the develop- nological development of in an effort to update the tech- [email protected] 2 million cubic meters ing standardization of bullion finished price of the product.

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effective role in this regard. and ultimately their stoppage. However, so far iron ore re- But unfortunately what has serves in the country have not so far been dominant over the IMIDRO Plans been organized properly. country’s mining sector, is lack In the field of copper of proper and correct exploita- industry we are witnessing a tion of the mines so that a wide similar situation. Our country range of mineral reserves have by being located on the world not been identified yet and only for Development belt of copper reserves pos- limited parts of the country sesses valuable reserves which have been brought under ex- field dates back to the creation can be the first advantage and ploration studies. of man. Both of these indus- a winning card for develop- Meanwhile, as long as tries are also considered part ment of copper industry. The we have not reached an ad- of the parent industries and by copper and steel industries are equate understanding of what supplying the raw materials small samples of the industries we have in our possession, for other industries play a vital that are capable of develop- we cannot exploit it properly. role in the field of economy. ment in our country. Because, Another very important point Meanwhile, the mining sector diversity and quality of miner- which should be referred to in Iran enjoys unique charac- als in Iran show that each of is that although the industry teristics which are indicative these minerals alone can form is strongly dependent on the of more advantages for invest- a basis for the formation of an mining sector and mineral in- ment in this field. It is enough industry, generation of rev- dustries, unfortunately in this to refer to two industries that enue, obtaining hard currency, case we have experienced a are today considered the vital creation of job opportunities reverse trend. That is to say, amshid Mola-Rahman, pulse of the industries: steel and economic boom. different industries have taken Deputy for Mine and Min- industry and copper industry. Now let’s take a more shape without any attention to Jeral Industries Projects at Under circumstances that comprehensive look at our in- the raw materials and the re- IMIDRO, in a press conference China as the world’s largest dustries as a whole. The raw quired infrastructures and later shed more light on the role of steel producer is also the larg- materials needed by different relevant mineral industries mines in the industrial devel- est importer of iron ore, its industries ranging from auto- were created in accordance opment of the country. importance in the field of iron motive industry to food indus- with the existing requirements. ore is such that it even holds try, etc., intermediary or non- Moreover, for the cre- To what extent does the the pulse of the market in its intermediary are dependent on ation of sustainable industries industrial development in hands. This topic leads us to and in need of mines and min- first reliable sources should Iran depend on development a number of important points. ing industries. Mining materi- be created for raw materi- of the mining sector? First, despite dependence on als and products are in fact ei- als. Therefore, dependence Supply of raw materi- import of iron ore, China has ther the input of the industries of different industries on the als has the final say in vari- developed its steel industry up or among the necessities for mining sector shows that for ous industries so much so that to the first place in the world. formation of those industries. sustainable growth and devel- when an industry has access The second point is that under For example, the automotive opment of the industrial sector to raw materials it would be the status quo and with regard industry will be meaningless first attention should be paid a relative advantage. In fact, to the population growth, in- in the absence of steel and oth- to the mining sector and with the raw materials are the input creased construction and de- er mineral materials. Even the sufficient investment in this feed of industries. Therefore, mand for steel a unique oppor- oil industry which accounts field the required infrastruc- if we do not have raw materi- tunity has arisen in the steel for a significant portion of rev- ture should be provided for als of an industry we will be industry for the countries that enues is somehow dependent the development of different obliged to import them and possess iron ore reserves. on the mining sector since its industries. Because, one of the thus a considerable amount of Iran by taking advantage raw material is oil and oil falls most important infrastructures foreign exchange will flow out of numerous iron ore reserves into the mineral category. for the industries is the raw of the country to bring in raw enjoys the first privilege for the This deep dependency of materials and provision of raw materials. development of steel industry. the various industries on min- materials is not possible ex- What was mentioned is Iron ore resources as the raw erals and mining sector in gen- cept through exploitation and an indication of the impor- materials of the steel industry eral, bestows an especially im- processing of mineral reserves tance and position of parent are almost spread across the portant position to the mining and materials. industries in the economy and country. Through appropriate sector. Because, minerals are in Of course, this does not the industry as a whole. His- utilization of these reserves fact the blood in the veins of the mean that exploitation of the torically, agriculture and min- not only we will become need- industries and any disturbance required minerals enjoys eco- ing have been among main less of importing steel but be- in the activities of this sector nomic priority and justifica- activities of human beings and come capable of supplying the will be tantamount to a drop in tion. Each of the minerals the history of activities in this region with steel and play an production of other industries available in the country is con-

128 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 129 IMIDRO Exclusive

sidered a giant asset that can eral activities are associated million tons (3 million ton of million tons of concentrated bring in an outstanding amount with eradication of depriva- raw coal) coal in the country. But, due of hard currency revenue tion which is considered one Plan to increase produc- to the depletion of the top through optimal extraction and of the positive social conse- tion from 1.5 million tons to level mine reserves, they will exploitation, development of quences of the development 4.6 million tons of concen- mostly be replaced and will downstream industries and ex- of activities in this section. trated coal includes 11 devel- account for about 5% increase port. For example, the mineral Also, with the exploitation of opment plans in the country’s total capacity. brine which might not seem the mines and establishment much valuable in the eyes of of plants for mineral process- The country’s total geo- Application status of differ- the public is an important re- ing grounds will be prepared logical coal reserves are about ent types of coal: The use of source which can generate for widespread employment 11 billion tons of which 756 coke yield coal in the steel considerable income in case of which can play an effective million tons are proven, 3 bil- production dates back to 50 sound investment and exploi- role in overcoming unem- lion tons are probable recov- years ago. In relation to the tation. For example, reference ployment in that area. The fi- erable and 7 billion tons are use of thermal coal for gen- can be made to Qom Salt Lake nancial turnaround caused by in the category of possible eration of electricity, a factory which is rich in halite, sylvite mineral activities is capable of recoverable which are spread was established near Zarand and magnesia but unfortunate- transforming the economy of over in Kerman, East Alborz coal washing plant with a ca- ly has remained intact. the area and gain considerable (Semnan), Central Alborz (Sa- pacity of 60 MW. Due to the Another point which be- revenue. All the items I men- vadkouh) and Tabas. low price of mazut in previ- stows great advantages to the tioned are the relative advan- The country’s concen- ous years, it used mazut but in mining sector for investment tages of the mining sector for trated coal production capac- recent years with the increase is the ability of this sector in investment and development. ity is about 1.5 million tons in price of mazut it has been creation of job opportunities, What is understood from the (3 million tons of raw coal) replaced with coal. economic boom and develop- entire situation and factors is which in recent years due to For the generation of ment in deprived areas. What that to have a developed Iran the improper situation of the electricity with a capacity of distinguishes the mining sec- and a stable industry the first market and lack of prepared- 650 MW (phase 1) from ther- tor from the industry sector step is to make investment in ness of the mines and absence mal coal, the Mezino1 mine in this regard is the ability of the mining sector and develop of investment for the purchase with a reserve of 200 million mine and mining industries in the industry. of equipment, the actual pro- tons has been ceded to Iran eradication of deprivation and duction of concentrated coal Power Development Organi- development of rehabilitation. Iran possesses substan- has been about 1.1 million zation but so far the factory Different industries are gener- tial coal reserves. What is tons. for power generation has not ally located at the margins of our current coal production The plan for the equip- been established yet. the cities. For this reason, with capacity? Will thermal coal ment of coal mines to increase With regard to generation the establishment of an in- be placed in the energy bas- output from the present 1.5 of liquid fuel from coal and dustrial plant on the outskirts ket of Iran? What are the million tons to 4.6 million gas yielding coal (CTL, UCG of the city people would rush main problems of the coal tons of concentrated coal in- methods) studies have not to the site from the surround- sector in Iran? What are cludes 11 plans of which 4 been conducted in the country. ing villages for employment IMIDRO plans for develop- are in Tabas, 3 in Kerman, 3 in that industrial complex. ment of this industry? in East Alborz ad 1 in Central Applications of thermal Therefore, with the formation Alborz areas. coal: In new technologies, of some industries we will Important tips Projects for equipping thermal coal is used for probe witness to the imbalanced The total amount of coal mines in Khomroud of duction of gasoline and gas oil distribution of population, ex- recoverable proven coal re- Kerman, Parvadeh 4 project (coal to liquid) has been used. cessive migrations and even serves in the world is about of Tabas, Eastern Parvadeh, Also, in new methods establishment of slums in the 861 billion tons and Iran’s re- Parvadeh 2 and Parvadeh 3 (a of mine extraction, coal will neighborhood of different coverable proven reserves are total of 5 projects) are priority be converted to gas deep Un- factories and industrial com- 1.2 billion tons projects which will contribute derground Coal Gasification plexes. The total geology coal to an increase of about 72% in (UCG). After isolation of co2, Meanwhile, mines are reserves of Iran are about 11 concentrated coal capacity of other gases will be used for mainly located in deprived billion tons the country (2 million tons). the generation of electricity areas. Reopening of mines re- Proven reserves are The second priority proj- or production of liquid fuel. quires road building, supply about 800 million tons ects include projects for the This complicated method and of water, electricity, telephone Probable recoverable re- equipment and development implemented projects in the and other welfare facilities serves are about 3 billion tons of coal mines of Hashouni and world have mainly been ex- and thus, in an unwanted de- Possible recoverable re- Pabdana in Kerman and Takht, ecuted in the former Soviet velopment, with the reopening serves are about 7 billion tons Western Razmjay and Vatan Union countries, the US, and of mines their surrounding ar- Production capacity in Eastern Alborz region, and Australia at a research scale eas will gain access to relevant of concentrated coal in the Kordabad Mine in Central Al- and with significant costs. development. Therefore, min- country is approximately 1.5 borz which will maintain one Also in the process of

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No. Areas Proven Probable Present capacity Capacity in 1399 4 Mine in Tabas (450 thou- concentrates) (m. tons) (m. tons) (thousand tons) (thousand tons) sand tons of concentrates) Construction of coal wash- Project to equip East Par- ing factory for East Parvadeh 1 Kerman 203 104 800 1300 vadeh Mine (600 thousand Mine (600 thousand tons of 2 Central Alborz 138 497 100 350 tons of concentrates) concentrates) 3 Eastern Alborz 45 100 200 450 Project to equip Parvadeh Construction of coal wash- 2 and 3 and independent blocs ing factory for Parvadeh 2 4 Tabas 398 2352 800 2500 of Tabas (500 thousand tons of and 3 mines and independent Total 786 3056 2000 4600 concentrates) blocs (500 thousand tons of Project to equip Kord- concentrates) *The capacity of the areas has been considered on the basis of production capability of mines and coal washing factories. **Proven recoverable reserves (extracted) have been estimated at 50% of the proven reserves and 25% of the probable recoverable reserves abad Mine of Savadkouh (150 Construction of coal wash- thousand tons of concentrates) ing factory for Savadkouh cement production and some The Middle East coke Project to equip Takht and (350 thousand tons of concen- methods for the production of production holding (800 thou- Vatan of East Alborz (150 trates) steel and ferroalloys thermal sand tons) (private) has be- thousand tons of concentrates) Construction of coal wash- coal is used. come operational (the company has been trans- ing factory for Kerman (500 Tabas coke production ferred) thousand tons of concentrates) Coal reserves and output Company (450 thousand tons) Project to equip Hashouni Construction of coal wash- (world and Iran): The total (private) nearing finalization and Pabdana mines of Kerman ing factory for Shahroud (350 amount of proven coal re- Savadkouh coke pro- (150 thousand tons of concen- thousand tons of concentrates) serves in the world amount to duction (300 thousand tons) trates) (the company has been about 861 billion tons while contract has been concluded transferred) Projects for the construc- Iran’s proven reserves has and is at the stage of financing tion of coal washing factories been put at 1.2 billion tons by the Chinese The important point at will be launched after finaliza- in the world ranking which Phase 2 of Zarand coke present is equipment of coal tion of the plans for equipping places the country in the 26th production (400 thousand tons) mines which is among funda- coal mines. position in terms of reserves. mental priorities of the country The annual world coal The coke producing proj- otherwise we will be in need Projects for develop- production is around 7 billion ects (except for Savadkouh of importing coal. Fortunate- ment of thermal coal mines tons of which 6 billion tons and Zarand phase 2) were put ly, with the coming to power The amount of geologi- are thermal coal (consumed into operation in the year 1392 of President Hassan Rou- cal reserves of major thermal mainly for electricity genera- (2013-2014). hani’s government of ‘pru- coal mines in Tabas region is tion), and approximately 1 bil- Now the coke produc- dence and hope’ equipment of about 1.4 billion tons which lion tons are coke yield (con- tion capacity of the country by Khomroud Mine has started has been estimated respective- sumed in steel industry). considering the old steel mill through attraction of invest- ly as follows: In recent years Iran’s coal coke production units (900 ment. As for other mines, their Mezino Mine, 627 million production has been about 1.2 thousand tons) and Zarand operation has started after the tons billion tons of coke yield coal phase 1 (400 thousand tons) is green light came from IM- Kamar Mehdi Mine, 428 mil- which is used in steel indus- 3.5 million tons. Since the cal- IDRO Investment Committee lion tons try and about 0.1 billion tons endar year 1393 (2014-2015) and through attracting private Kuchakali Mine, 372 million of thermal coal which is pro- in addition to meeting domes- sector investment or in the tons duced and exported by the pri- tic demands the possibility form of finance. Projects for the develop- vate sector. With this amount is available for coke exports It should be noted that in ment of thermal coal mines of production, Iran stands in which is expected to increase case of realization of the pro- to supply feedstock for Tabas the 42nd place of the world. to 4.2 million tons in the year gram for equipping coke yield power plant (2million tons of Proven, probable re- 1397 (2018-2019). coal mines mentioned above, coal concentrates) and Tabas serves and production capac- According to the com- about 1.2 million tons of coal coke production factory (320 ity of coal areas in country prehensive plan, for the pro- will be imported which will thousand tons of coal concen- duction of 4.2 million tons be used for quality improve- trates) are as follows: According to the com- of coke in the country about ment and providing proper Project to equip Mezi- prehensive coal plan, for the 5.8 million tons of coal is re- feedstock for coke producing no1 Mine (production of 2 production of 6 million tons quired, of which 4.6 million plants. million tons of coal) belong- of steel blast furnace about 3.2 tons will be supplied by the lo- For washing the coal ing to Iran Power Develop- million tons of coke is needed cal mines. Projects for the de- produced by the above men- ment Organization and plans for the development velopment of coal yield mines tioned mines, projects for the Project to equip bloc 1 of coke production are: in the country are as follows: construction of coal washing of north Kuchakali Mine be- Phase 2 of Isfahan Project to equip Khomroud factories are as follows: longing to Supply and Produc- Steel Mill coke production Mine in Kerman (450 thou- Construction of coal wash- tion Company (900 thousand tons) has be- sand tons of concentrates) ing factory for Parvadeh 4 Project to equip bloc 2 come operational Project to equip Parvadeh Mine (450 thousand tons of of north Kuchakali Mine be-

132 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 133 IMIDRO Exclusive

longing to Supply and Produc- to create Sangan Infrastruc- mentation and the required What is the status of tion Company ture Supply Company by the planning has been made for green coke project? What is Project for exploita- private sector and with part- launching executive opera- the impact of this project on tion and equipment of bloc 1 nership of IMIDRO. tions for the establishment of steel and aluminum produc- of South Kuchakali Mine be- In Gol Gohar region too, phase 1 of Parsian jetty with a tion chain? longing to Supply and Produc- a comprehensive project has capacity of 40 million tons. The green coke production Company been developed and capacities, Meanwhile, a plan for tion project is one of IM- Studies for design and infrastructures and their main- establishment of the required IDRO’s strategic plans which exploitation of Kuchakali tenance have been formulated infrastructures in large mines have been defined with an aim mines are underway by the and put into operation. and mining areas for creation of providing petroleum coke Supply and Production Com- In Tabas coal area, the of infrastructural facilities required by the industries for pany under IMIDRO policy- water required by mineral in- including electricity, water, the production of aluminum making. dustries has been supplied by gas, telecommunication and and steel. The history of the receiving operation permit for communication roads for plan dates back to the calendar Exploration development exploration wells and at pres- mines was launched in 1385 year 1384 (2005-2006) when Project in Tabas region: In ent there is no problem in the (2006-2007). After conduct- technical-economic studies order to carry out compre- area in this regard. ing national studies, 80 proj- were conducted in line with hensive explorations in Tabas In connection with the ects for building of access the opinion of the Manage- region an area of 60,000 km transportation infrastructure, roads with a length of 1700 ment and Planning Organi- has been considered by the effective measures have been km and 83 power supply proj- zation but its execution was Exploitation Office to use en- taken by IMIDRO and com- ects with a length of 1,600 long delayed due to different gineering services of Russia. plete coordination has been meters were identified. Upon reasons. With the change in With regard to the existence done in this field with Iran the approval of the Manage- the conditions of the country of large thermal coal reserves Railways and mining, steel ment and Planning Organiza- and the change in the attitude in Tabas region (Parvadeh, and railroad companies within tion, 40 road building projects of IMIDRO management, the Mesino and Abdoghi) study the framework of a working and 40 power supply projects plan was reviewed once again. and evaluation of methods on group for promotion of pro- were included in the MOU for The main activities which coal application for produc- ductivity of the railway net- implementation. The plan has have been carried out in con- tion of liquid fuel (CTL) and work in the country. been successful and so far 35 nection with the plan over the gas yield of coal (UCG) are This working group has road building projects with a past one and a half years are: hereby recommended. held sessions in Hormuz- length of 350 km and a credit Comprehensive study of gan, Isfahan, Yazd, Tehran, of 660 billion rials and 12 all refining and non-refining What is the condition Khuzestan, and Khorasan power supply projects with a wastes useable in the industry of the infrastructure Razavi provinces and the re- length of 260 km and a credit for production of petroleum needed by mine and mining sult of cooperation and inter- of 136 billion rials have been coke industries of the country? action of this group has led to completed. Examination of methods What are IMIDRO plans for the formation of subsidiary Currently, eight road of reducing sulfur and metal development? working groups in the form building projects with a length compounds from the selected IMIDRO, in addition of provincial working groups of 103 km and a credit of 361 feed to meeting the costs of infra- for monitoring problems and billion rials (with an average Updating technical and structures is seriously supply- referring them to the relevant progress of 49%) and two economic studies for con- ing infrastructures of the chain authorities as well as drafting power supply projects with a struction of a petroleum coke of steel and mining industry’s a memorandum of understand- length of 35 km and a credit producing plant plans in cooperation with re- ing for railway transportation of 31 million rials (with an Obtaining a permit lated organizations such as the of minerals in the railroad average progress of 62%) are from the National Iranian Oil Ministry of Energy and Minis- transportation chain. under implementation. Products Distribution Com- try of Oil and the Railway Or- The memorandum of un- Based on the planning, pany (NIORDC) for the vac- ganization and successes have derstanding will provide the 24 power supply projects with uum bottom feed supply of been achieved in this regard. possibility for removal of rail- a length of 498 km and an es- 20 thousand barrels per day at Currently, infrastructures of road transportation bottlenecks timated cost of 777 billion ri- Abadan refinery and 7 thou- mining region of Sangan for in the transportation chain als, 54 road building projects sand barrels of CSO at RFCC production of 17.5 million from starting points to the des- with a length of 691 km and (fluid catalytic cracking) unit tons of concentrates and 15 tinations with the presence of an estimated cost of 5,851 bil- of Arak refinery million tons of pellets are spe- representatives from IMIDRO, lion rials and a water project Construction of pilot cially being prepared. In ad- Iran Railway and mineral, steel with a length of 90 km and an plants for production of petro- dition to the measures taken and railroad sectors. estimated cost of 300 billion leum coke in cooperation with so far for the supply of water, Maintenance of infra- rials are under study and will the Oil Research Institute of electricity, gas, power trans- structures of special energy become operational if finan- the oil industry mission lines and railways of consuming zones of Lamerd cial resources are supplied. Obtaining permit from Sangan efforts are being made and Parsian are under imple- IMIDRO Board of Governors

134 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 135 IMIDRO Exclusive

for construction of factory tons of ore with the stripping the production of pigment and ing studies up to the slag stage. Purchase of 50 acres of ratios of 3.5 and 2.9. took measures for the sign- Also preparation of the tender land from Arvand Free Zone Based on formulated ing of an agreement with Eco documents for the selection for construction of factory plans, access to the following Atom Company of Armenia. of the contractor and call for Negotiating with compa- targets in the vicinity of San- This method has been an ex- selection of a contractor for nies with high technical knowl- gan iron ore has been targeted clusive method (using electro- concentrate and pellet projects edge in the area of project im- with investment and participa- dialysis) among benefits of and quality assessment of the plementation for construction tion of the private sector: which reference can be made tenderers is underway. and operation of factories. In Production of 17.5 mil- to the low cost of production line with this basic engineer- lion tons of concentrates per and reduction of environmen- 3- Zarshouran gold ing negotiations are nearing year tal impacts in comparison with Zarshouran gold factory completion and in early 1394 Production of 15 mil- common conventional meth- started operation with a nomi- (started March 21, 2015) the lion tons of pellets per year ods. Currently engineering nal capacity of 3 tons per year contract for basic engineering In the extraction plan of studies of the project are un- in the Iranian month of Mehr of the plan will be signed. Sangan Complex, extraction derway and parts of the equip- (September/October) and On the role of petro- of raw material (iron ore) for ment including three electro- currently the factory is in its leum coke in steel and alu- the projects under implemen- lyzers and two electro-dialysis preliminary stages of the start minum production chain, as tation has been considered at devices have been transferred of temporary delivery. Mean- you know, for the production a total of 40 million tons per to Kahnouj site. Physical de- while, it has been decided that of each ton of aluminum ap- year as of 1397 (2028-2019) velopment of the plan is about gold production in the next proximately 500 kg and for 58% and it is expected to go year will reach the target of each ton of steel in arch meth- 2- Kahnouj titanium on stream by the next year. 1500 kg. od about 6 kg of petroleum Kahnouj titanium mine Also, in the field of the coke is required. Currently, with a proven capacity of over main project, with regard to Development plan for phase the proven consumption of 150 million tons and a grade of the completion of exploration 2 of Zarshouran gold: With the country only in the two in- 3.7% titanium oxide is one of and processing studies as well respect to the explorations dustries is over 250 thousand the titanium potentials of the as the results achieved from conducted and reaching the tons per year that will be dou- country. Therefore, activation the performance of semi-in- 110-ton gold reserve, the plan bled with the implementation of the mine and implementa- dustrial units, the economic for development of phase 2 of of the current development tion of the planned develop- technical studies of the plan Zarshouran gold with a nomi- plans. Therefore, in addition ment projects for production were launched in late 1392 nal capacity of 3 tons per year to the strategic position of this of 50 thousand tons of pig- (early 2014). IMIDRO put the (altogether 6 tons annually) product in the production of ment is of great importance. plan for the establishment of was put on the agenda. With steel and aluminum, its role The latest situation of the industrial units for production regard to the determination of in the production economy is measures taken so far in the of concentrates with a capac- the process of initial financing, important so that 15% of the semi-industrialized and indus- ity of 130 thousand tons, the the advertisement on tender finished price of aluminum trialized sectors is as follows: slag unit with a capacity of documents have been offered production is relate to the an- 1. Semi-finished unit 70 thousand tons and the pig- by the complex to the man- ode and petroleum coke. with an aim of experimental ment unit with a capacity of agement for legal and contract production of ilmenite con- 50 thousand tons per year on affairs for holding the tender. Would you please de- centrate was designed under its agenda. The tender documents for the scribe the situation of other the continuous consultation With regard to the strat- selection of the contractor and IMIDRO development proj- with the Russian Gridmates egy of IMIDRO for expansion EPC have been finalized and ects? What would be the ef- Institute and was put into of investment especially in the formulated for the advertise- fects of these projects on the operation in the year 1382 deprived areas, the high vol- ment on the call for tender country once they are com- (2003-2004). ume of investment required up held in two stages by the end missioned? Considering that the to the production of pigment, of March, 2015. 1- Sangan iron ore complex project remained idle up to prevention a halt in and the With the implementation Iron ore extraction from this 1390 (2011-2012) the main need for acceleration in exec- of development projects and complex in the calendar year activities were limited to the utive operations, IMIDRO de- other projects implemented or 1392 (2013-2014) amounted administration of the semi- cided to implement the main under implementation by the to 3.2 million tons and in 1393 industrial unit up to the pro- projects up to the stage of pro- Supply and Production Com- it will increase to 5.3 million duction of slag which subse- duction of slag as the saleable pany as the executive arm of tons. On the basis of the com- quently with an aim of gaining product of the first phase with IMIDRO great progress will prehensive plan for optimal access to technical knowhow an estimated investment of 47 be made toward the develop- utilization of mineral resources for the production of pigment, million euros and 1360 billion ment of the country especially of Sangan iron ore, extractable the IMIDRO planned the proj- rials until investors are found. in the development of de- reserves of final applicable pit ect for establishment of Kahn- In this regard, the advisor prived areas, in employment of western and central mines ouj titanium pilot plan with a of the project has been selected and in the completion of the include 499 and 311 million capacity of 2 tons per day for for the completion of engineer- value chain of the minerals.

136 IRAN INTERNATIONAL, June 2015 IRAN INTERNATIONAL, June 2015 137 IRAN ran International joined the world in celebrating the Ibirth of a new millennium. Every creature has a A Window, A River, A Heart way of cherishing an auspicious occasion, and we did it our own way. The result became a window for shedding light and delight, a river for nature to capture, and a heart for love from above; IRAN: A Window, A River, A Heart.

With only a brief look at our land, Iran International Millennium Issue turned into a country book in 340 pages. The book’s three chapters: A Window, A River, A Heart; respectively correspond to the world’s mostly valued elements: Technology, Nature, Humankind.

The vision behind production of IRAN: A Window, A River, A Heart transcends the boundaries on land and time. The book opens by Globalization without Domination and closes with An Idea Materialized. It covers Iran in a wide variety of topics ranging from architecture, industry and professions to nature, people and arts.

Combining a collection of finest pictures with English verse, IRAN: A Window, A River, A Heart is meant to offer a new image of the new Iran. It is an honest attempt which aims to avoid overstatements and understatements.

IRAN: A Window, A River, A Heart is solely distributed by Iran International Office.