2012 Minerals Yearbook

U.S. Department of the Interior May 2015 U.S. Geological Survey The Mineral Industry of Iraq By Mowafa Taib

Iraq was a significant supplier of crude oil to the world in steel imports was 4 Mt in 2012 (Annous, 2012; International 2012 and was the world’s ninth-ranked producer in terms Monetary Fund, 2013, p. 25; Organization of the Petroleum of volume. The country produced 3.1 million barrels per Exporting Countries, 2013, p. 55, 82; World Steel Association, day (Mbbl/d) of crude oil and condensate and accounted 2013, p. 26). for 3.7% of the world’s total output. Iraq, which exported 2.43 Mbbl/d of crude oil in 2012, was the world’s fourth-ranked Government Policies and Programs crude oil exporter after (7.56 Mbbl/d), Russia The Iraq Geological Survey (Geosurv-Iraq) identified (5.86 Mbbl/d), and the (2.66 Mbbl/d). 12 investment opportunities in the industrial mining sector in The country’s proved crude oil reserves, which were estimated Iraq and called for investors to develop mining operations under to be 150.1 billion barrels (Gbbl) and accounted for 9.0% of Investment Law No. 13 of 2006 and its modifications and Law the world’s total reserves, ranked Iraq as the fifth country in of Mineral Investment No. 91 of 1988. These potential projects the world in terms of the volume of petroleum reserves after were phosphate rock mining and beneficiation at the Al Hirri Venezuela (297.6 Gbbl), Saudi Arabia (265.9 Gbbl), Canada Wadi in Al Anbar Governorate and the Swab Wadi; a mining (173.9 Gbbl), and Iran (157.0 Gbbl). Iraq’s proved natural and processing facility for native sulfur deposits at Lazzaga and gas reserves were estimated to be 3.6 trillion cubic meters, or Mishraq in Ninawa Governorate; a silica sand production plant 1.9% of the world’s total reserves. Iraq was a member of the in Al Anbar Governorate; a feldspar concentrate plant from Organization of the Petroleum Exporting Countries (OPEC) feldspathic sandstone at An Governorate; a sodium sulfate (BP p.l.c., 2013, p. 6, 8; Organization of the Petroleum production plant to process glauberite, which is associated with Exporting Countries, 2013, p. 55). gypsum and clays at Shari Saltern in Salah ad Din Governorate; In 2012, Iraq, which did not produce any metal commodities, a sodium carbonate production plant that uses the Solvay produced several industrial minerals in modest quantities for process in Al Anbar Governorate; a plant to produce alumina local consumption. These commodities included bentonite, from kaolin using the lime-soda sinter process in Al Anbar cement, clay, gypsum, limestone, nitrogen and phosphate Governorate; a ceramic tiles and tile-bricks plant; gypsum mines fertilizers, phosphate rock, salt, sand and gravel, and sulfur in Al Anbar, Ninawa, and Wasit Governorates; and a chalk (pure (table 1). calcium carbonate) mine at the Wadi Al Ghadaf (Iraq Geological To encourage investment in the country’s nonmetallic Survey, 2013; Ministry of Industry and Minerals, 2013). sedimentary mineral resources, the Ministry of Industry and The Petroleum Contracts and Licensing Directorate of the Minerals (MIM) released its estimates for Iraq’s mineral Ministry of Oil conducted several petroleum bidding rounds in resources, which included 10 billion metric tons (Gt) of accordance with the Law of Private Investment in Crude Oil phosphorite, 8 Gt of limestone, 1.2 Gt of kaolinitic clay Refining (law No. 64 of 2007) and its amendments. In May, stones, 600 million metric tons (Mt) of native sulfur, 330 Mt the winners of the fourth oil and gas bidding round—which of dolomite, 130 Mt of gypsum, 75 Mt of quartz sand, 22 Mt attracted less interest from major international oil companies each of bentonite and glauberite, 50 Mt of halite salt, 16 Mt than had previous rounds and which was the first exploration of quartzite, and 2.3 Mt of feldspathic sandstones, as well as round intended for new crude oil and natural gas reserves—were substantial resources of construction sand, gravel, and sandstone announced. Petroleum Ltd. of Pakistan was awarded (Ministry of Industry and Minerals, 2013). a license to explore for natural gas and oil in Block 8, which is Minerals in the National Economy located 110 kilometers (km) east of . Kuwait Energy, along with Dragon Oil Plc. of the United Arab Emirates and In 2012, Iraq’s gross domestic product (GDP) increased Türkiye Petrolleri Anonim Ortaklığı (TPAO) of Turkey, were in real terms by 8.4% compared with an increase of 8.6% in awarded an exploration and development license on Block 2011. The Government revenue from the hydrocarbon sector 9, which is located 20 km north of Basrah in southern Iraq. accounted for 44.6% of the GDP. The value of Iraqi exports, Block 10, which is located southwest of Nassiriya in southern which consisted almost entirely of petroleum products, increased Iraq, was awarded to OAO Lukoil of Russia along with Inpex by 13% in 2012 to $94.3 billion from $83.3 billion in 2011. The Corp. of Japan and JSOC Bashneft of Russia. Block 12, which OPEC’s spot Reference Basket price for Iraq’s light crude is located between the and Najaf averaged $107.96 per barrel in 2012 compared with $106.17 per Governorate, was awarded to Premier Oil p.l.c. of the United barrel in 2011. The volume of crude oil exports and petroleum Kingdom (Ministry of Oil, 2012; U.S. Energy Information products increased to 2.42 Mbbl/d and 471,900 barrels per day Administration, 2013). (bbl/d) from 2.33 Mbbl/d and 162,000 bbl/d, respectively, in As of yearend 2012, a draft of the gas and oil legislation 2011. Iraq was the leading importer of cement known as the Hydrocarbon Law, which was first proposed in and the 11th-ranked steel importer in the world. The volume of 2007, remained stalled because of disagreements among Iraqi cement imports was estimated to be 12 Mt, and the volume of parties on wider political issues, including revenue sharing.

Iraq—2012 49.1 The proposed law would create an oil and gas council to oversee Commodity Review the country’s oil and gas sector and would establish the Iraq National Oil Co. The proposed law also contains arrangements Metals for petroleum revenue sharing through the creation of an Oil Revenue Fund and a Future Fund. The Government was also Iron and Steel.—Iraq’s iron and steel sector attracted several planning to issue a new mining law that would attract investors international steel companies and investors because of the to develop the country’s industrial mineral resources. increased demand for steel products to satisfy the country’s In northern Iraq, the Regional Government (KRG), needs in the construction and hydrocarbon sectors. Iraq’s which is the ruling body of the federated region in northern Iraq, steel imports had been increasing in recent years; the country adopted its own hydrocarbon law in 2007 and awarded some imported 4 Mt of steel in 2012 compared with 2.6 Mt in 2011. 50 crude oil and natural gas production-sharing contracts in the In 2012, the State Company for Iron and Steel (SCIS) signed a Kurdistan region of Iraq by yearend 2012. KRG was planning final agreement with UB Holding Ltd. of Turkey under which to increase crude oil production to 1 Mbbl/d by 2015 from UB Holding would invest $700 million during 18 years to 200,000 barrels (bbl) in 2012 (Ministry of Natural Resources of rebuild the SCIS steel complex at Khawr in Al Basrah Kurdistan Regional Government—Iraq, 2013). Governorate. The project, which would be implemented in three phases and completed in 2016, was expected to produce Production 1.3 million metric tons per year (Mt/yr) of iron and steel products. The SCIS complex had been damaged during the war The major increase in the volume of Iraq’s mineral in 2003 and had remained idle ever since (Iron and Steel State commodity output in 2012 compared with that of 2011 was for Co., 2013; World Steel Association, 2013, p. 27). crude oil and condensate production, which increased by 11% In northern Iraq, the 50-50 joint venture of ArcelorMittal to 1.1 Gbbl from 1.0 Gbbl. Silica sand production increased of Luxembourg and Dayen Co. of Turkey planned to build by 733% to 1,439 metric tons (t); phosphate rock, by 105% to a steel minimill with an electric arc furnace (EAF). The mill 250,000 t; limestone for cement, by 14% to 4.6 Mt; and sand would have an initial production capacity of 250,000 metric and gravel, by 9% to 23.2 Mt. Notable decreases in the volume tons per year (t/yr) of rebar that could be increased to between of mineral commodity output in 2012 compared with that of 400,000 and 500,000 t/yr. The $100 million mill would use 2011 were for bentonite production, which decreased by 84%; local scrap metal to make billet and rebar. The project had been other refinery products, by 83%; kerosene and jet fuel, by 49%; scheduled to commence production in 2011, but production limestone (for construction), by 44%; natural dry gas, by 26%; was delayed to 2013, and the site of the plant was moved to and gypsum, by 17% (table 1). Arbil from As Sulaymaniyah. Mass Iraq Iron and Steel Industry Co. (a subsidiary of Mass Group Holding Ltd. of Jordan) was Structure of the Mineral Industry building a new 1.25-Mt/yr steel plant in northern Iraq. The Investment Law No. 13 of 2006 covers all areas of investment plant would include a 120-t capacity EAF, a ladle furnace, and except for investment in the oil and gas sector. The Ministry a five-strand continuous caster supplied by the Danieli Group of of Oil managed Iraq’s hydrocarbon sector activity through a Italy. The plant was expected to commence production during number of state-owned oil companies. The upstream companies the second half of 2013 (Steel Orbis, 2012; Mass Group Holding included Iraq Drilling Co., Midland Oil Co., Missan Oil Co., Ltd., 2013). North Oil Co., Oil Exploration Co., Oil Project Co., and South In December, CVS Rolling Mill (a subsidiary of CVS Oil Co. The downstream companies included Gas Filling Co., Technologies) of Turkey began installing machinery for a Midland Refinery Co., North Refinery Co., Oil Marketing Co., new 500,000-t/yr-capacity EAF melt shop and a 420,000-t/yr- Oil Pipeline Co., Oil Products Distribution Co., Oil Tanker Co., capacity rebar mill. The project was expected to be operational South Gas Co., South Refinery Co., and State Oil Marketing in 2014. Jindal SAW Ltd. of India signed a contract with the Organization. Government to build and operate a plant to produce gas and oil The MIM administered the activity of the hard rock pipes in southern Iraq. The $200 million pipe plant would have minerals sector through several state-owned companies, the capacity to produce between 300,000 and 350,000 t/yr of including General Company for Phosphate, Geosurv-Iraq, Iraqi pipes and would be wholly owned by Jindal (Arab Steel, 2012). Cement Co., Iron and Steel State Co., Mishraq Sulphur State Industrial Minerals Enterprise, Northern Cement Co., Southern Cement Co., and State Company for Southern Fertilizer Industry. Geosurv-Iraq Bentonite.—Beijing Trading and Development Co. of China conducted geologic studies, mapping, and mineral exploration was building a bentonite-activation plant at in Al Anbar activity. It also produced industrial minerals, including Governorate. The plant would convert calcium-based bentonite bauxite, bentonite, clays, construction and silica sand, feldspar, into sodium-based bentonite for use as a drilling mud for oil ironstone, kaolin, and salt (Iraq Geological Survey, 2013). and gas wells. The plant was expected to tap into Iraq’s 22-Mt reserves of bentonite, which are calcium-based and are located in the Traifawi area in the Western Desert. The plant would have an initial capacity of 75,000 t/yr of sodium-activated bentonite (which could be increased to 100,000 t/yr) and was expected to be completed in April 2013 (Iraq Geological Survey, 2012).

49.2 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2012 Cement.—Consumption of cement had been increasing in Phosphate Rock.—Although the General Company for recent years, as consumption of cement in Iraq was increasing Phosphate doubled its phosphate rock output to 250,000 t in at an annual rate of 15%. The volume of Iraqi cement imports 2012, the production remained well below the capacity of had also been increasing steadily in recent years owing to the 3.4 Mt/yr. Most of Iraq’s phosphate rock deposits occur in the massive construction activity in the country’s commercial, Paleocene Akashat Formation in Iraq’s Western Desert. The industrial, and residential sectors. Iraq became the leading deposits are located about 15 to 20 kilometers (km) northeast importer of cement in the Middle East by importing about 12 Mt of the Akashat Mine and cover an area of 40 square kilometers of cement, or 65% of the country’s total consumption. Cement (km2). Geosurv-Iraq estimated Iraq’s phosphate reserves and imports came mainly from Iran, Turkey, and Saudi Arabia resources to be 9,529 Mt. The Akashat deposit was estimated to (Annous, 2012, p. 22). hold 430 Mt of proved phosphate rock reserves grading 21.52%

In 2012, Lafarge (Iraq’s leading producer of cement) had P2O5. Other indicated resources included the Swab deposit, 6.5 Mt/yr of cement production capacity in Iraq, which which held an estimated 3,503 Mt of phosphate rock grading accounted for 20% of the country’s installed capacity of 21.71% P2O5, followed by the Dawima site, 2,758 Mt grading

32.5 Mt/yr. Lafarge operated three plants at Bazian and 20.56% P2O5; the Marbat deposit, 2,114 Mt grading 21.17%

Tasluja in As in northern Iraq and P2O5; the Ethna site, 430 Mt grading 17.50% P2O5; the H3 site, at in southern Iraq, respectively. Lafarge and Faruk 313 Mt grading 17.50% P2O5; and the Hirri site, 193 Mt grading

Group Holding were joint owners of Bazian Cement Co. and 21.94% P2O5 (Al-Bassam and others, 2012, p. 18; General Union Cement Co., which operated the Bazian and the Tsluja Company for Phosphate, 2013). cement plants, respectively. Karbala Cement Manufacturing Silica.—Production of silica sand increased by 732% in Co. (KCMC), which was a joint venture of Lafarge (51%) and 2012 compared with that of 2011. The silica sand produced was Merchant Bridge Co. of the United Arab Emirates (49%), was used to supply the ceramic and glass industries. The silica sand responsible for the rehabilitation of the Karbala cement plant, could be used in the white cement that would be produced at which is located in in southern Iraq. The the proposed white cement plant. Silica sand deposits in Iraq plant’s capacity was increased to 1.8 Mt/yr of cement from occur in several geologic formations in the Western Desert, the 576,000 t/yr, and the International Finance Corp. (a member of chief of which are the Gaʼara depression and the Hussainiyat, the World Bank Group) approved a $70 million loan to support the Nahr Umr, and the Rutba deposits in Al Anbar Governorate, the renovation project (Annous, 2012; O’Sullivan, 2012; Global which host silica sand of alluvial and marine sedimentologic

Cement, 2013). genesis and contain more than 90% quartz (SiO2) (table 1; Iraq In 2011, the Government approved a contract with an Geological Survey, 2013). unnamed Italian company to build a new cement plant in Al Diwaniyah City, Al Qadisiyah Governorate, in southern Iraq. Mineral Fuels The plant would be operated by a joint venture of the Government and the Italian investor and would cost $692 million to build. In Natural Gas.—Production of gross natural gas increased April, Lucky Cement Co. of Pakistan said that it was building by 10% to 20.5 billion cubic meters in 2012 compared with a greenfield cement grinding facility in Iraq. The grinding plant that of 2011. Dry gas output decreased by 26% to 646 million would be a 50-50 joint venture with an unnamed partner and cubic meters according to OPEC statistics (Organization of the would have the capacity to produce 870,000 t/yr of cement. In Petroleum Exporting Countries, 2013, p. 33). December 2012, Sinoma International Engineering Co. Ltd. The final contract had been signed by the Government and of China signed a contract with the Faruk Group to build a p.l.c. (Shell) of the United Kingdom for greenfield cement plant in As Sulaimaniyah City in northern the $17 billion South Gas Project. The initial agreement to Iraq. The $180 million plant would have the capacity to produce establish the joint venture of Basrah Gas Co. was signed in 1.8 Mt/yr of cement (Global Cement, 2013). 2008. The South Gas Project was proposed as a 25-year joint Nitrogen.—In 2012, ammonia and urea were produced by venture of South Gas Co. (51% interest), Shell (44% interest), three companies in Iraq—State Enterprise for Fertilizer and and Mitsubishi Corp. of Japan (5% interest) to capture flared Petrochemical (South), State Company for Fertilizer North Area, gas from a 19,000-km2 area in Al Basrah Governorate. The and 1st Global Company for Chemical Fertilizers Production project area was extended to include the Majnoon, the Rumaila, Ltd. Production by these companies remained well below the West Qurna 1, and the Zubair fields. Natural gas would be capacity because of old equipment at the two state-owned captured, treated, and processed for use locally or exported as companies and insufficient natural gas allocation. The MIM liquefied natural gas. Natural gas production from the project called for investing in three new urea plants in the Governorates was expected to reach about 56.6 million cubic meters per day of Al Anbar, Al Basrah, and Ninawa, respectively. The suggested (reported as 2,000 million cubic feet per day) by 2017 (Basrah capacity of the new plants would each be between 500,000 t/yr Gas Co., 2012; Mirza, 2013). and 1 Mt/yr of urea, and the cost to construct the plant would In the Kurdistan region of Iraq, natural gas production by be between $800 million and $900 million per plant. Natural Pearl Petroleum Co. Ltd. from the Chemchamal and the Khor gas needed as a feedstock for these plants would be available in Mor fields averaged more than 2 million cubic meters per year. all locations (Arab Fertilizer Association, 2012, p. 21, 25; State The project began in 2007 as a joint venture of PJSC Company for Fertilizers, 2013). (40%) and Crescent Petroleum (50%), both of the United Arab Emirates, and MOL Hungarian Oil and Gas Co. p.l.c. (MOL)

Iraq—2012 49.3 and OMV Aktiengesellschaft of Austria (OMV) (5% interest of Papua New Guinea, Pet Prime International Oil Co. Ltd. of each). The project supplied two gas-fired power stations at the United Kingdom, and Reliance Industries Ltd. of India held Chemchamel and Erbil and planned to transport surplus gas to two licenses each. One license each was held by Groundstar Europe through the Nabucco gas pipeline, which was to be built Resources Ltd., Heritage Oil plc., Longford Energy Inc., Vast in the near future (Dana Gas P.J.S.C., 2013). Exploration Inc., and Western Zagros Resources Ltd. (all of Dana Gas had been producing liquefied petroleum gas (LPG) Canada); Daesung Corp., Le Meilleur Co. Ltd., Majuko Corp., through two LPG trains at the Khor Mor gas processing plant Samchully Co., SK Energy Co. Ltd., and UI Energy Corp. (all of since 2011. The company supplied LPG and condensates by the Republic of Korea); First Reserve Corp., Niko Resources way of pipeline to powerplants at Chemchamel and Erbil from Ltd., Norbest Ltd., Perenco Oil and Gas, and Sterling Energy the Khor Mor field. In 2012, Dana Gas was evaluating the plc (all of the United Kingdom); and Hillwood Oil & Gas Group Chemchemal and the Khor Mor reservoirs, which have the LLC, Hunt Oil Co., Impulse Energy Corp., and Texas Keystone potential to become world-class gasfields. The company was Inc. (all of the United States) (Cutler, 2012; U.S. Energy planning to drill new wells to delineate the fields and to increase Information Administration, 2013). the gas production capacity (Dana Gas P.J.S.C., 2013). DNO continued with its exploration and drilling of areas OMV began a drilling program at the Bina Bawi 3 (BB3) covered by the Tawke production-sharing contract (PSC) and exploration well in January and encountered several the Dohuk PSC in the Kurdistan region in northern Iraq in hydrocarbon-bearing layers. The company planned to drill an 2012. DNO resumed crude oil production from the Tawke field exploration well in the Mala Omar Block, make progress in in February after it was suspended in September 2010 at the the appraisal of the Bina Bawi Block, conduct tests at the Rovi request of the KRG. Production from the Tawke oilfield reached and the Sarta Blocks, and evaluate test results at the BB3 well 75,000 bbl/d, and the company estimated that the crude oil (OMV Aktiengesellschaft, 2013, p. 10, 38). and natural gas reserves of the Tawke field exceed 500 million Petroleum.—In 2012, Iraq became OPEC’s second-ranked barrels. DNO, which was the first company to discover crude producer of petroleum after Saudi Arabia by overtaking Iran’s oil in the Kurdistan region of Iraq in 2006, began exporting oil ranking for the first time since the late 1980s. Iraq had 92 active from the Tawke field in 2011. DNO had interests in two other rigs compared with 59 active rigs in 2011. The number of licenses in the Kurdistan region of Iraq. In 2012, the company crude oil producing wells in Iraq increased to 1,700 from 1,695 was working on increasing production from the Tawke field, wells in 2011, and the number of completed wells increased to drilling exploration wells in the Dohuk PSC and the Tawke PSC 228 from 76 wells in 2011 (Chazan, 2013; Organization of the license areas, and preparing a declaration of commerciality for Petroleum Exporting Countries, 2013, p. 25–27). the Benenan-3 well on the Erbil license and the Bastora oilfields Estimates for Iraq’s crude oil refining capacity in 2012 discovery (DNO International ASA, 2013). ranged between 806,000 bbl/d and 1,042,000 bbl/d (a more In November, Exxon Mobil Corp. of the United States became precise figure is not possible to obtain because the effective the first major international oil company to sign an agreement capacity was less than the nameplate capacity in several with the KRG to explore for petroleum in six blocks in northern refineries and the production of heavy fuel oil is not included Iraq despite the opposition of the Central Government of Iraq. as part of refinery production by some estimates). The output The blocks were the Al-Qhosh, the Arbat, the Arbat North, the of petroleum products decreased by 5% to 580,400 bbl/d in Khanki, the Marathon, and the Perimam Blocks. The central 2012 from 613,200 bbl/d in 2011. The Government planned to Government of Iraq, which had prolonged disputes with the increase the country’s refining capacity to 1.5 Mbbl/d by 2017 KRG with respect to oil and land, deemed the contract between by building four new refineries at Kerbala (140,000 bbl/d), ExxonMobil and the KRG illegal and considered it a breach of (150,000 bbl/d), Maysan (150,000 bbl/d), and ExxonMobil’s contract with the Ministry of Oil to develop the (300,000 bbl/d) as well as by expanding the capacities at West Qurna Phase I oilfield in southern Iraq (Cutler, 2012). the Basrah and the Daura refineries (BP p.l.c., 2013, p. 16; In July, Afren p.l.c. of the United Kingdom purchased Organization of the Petroleum Exporting Countries, 2013, stakes in two Kurdistan operations for $588 million. The deal 25–27, 36, 41; U.S. Energy Information Administration, 2013). was expected to generate 75,000 bbl/d of crude oil from the In the Kurdistan region of Iraq, more than 40 companies were Barda Rash PSC within 5 years. Barda Rash is located 55 km exploring for crude oil and natural gas based on production- northwest of Erbil and operated by Afren, which held a 60% sharing contracts with KNOC, which included an initial 5-year working interest. The company also acquired a 20% working exploration period followed by a 20-year development period. interest in the Ain Sifni PSC, which is located 70 km northwest These companies, in order of the number of licenses they of Erbil and operated by Hunt Oil Co. of the United States held, included Genel Enerji A.S. of Turkey (seven licenses); (Afren p.l.c., 2013). KNOC (five licenses); and Marathon Petroleum Corp. of the United States, Hungarian Oil and Gas Public Ltd. Co. (MOL), Outlook Petroleum Products International Exploration and Production The Government planned to invest more than $600 billion in Inc. (PETOIL) of Turkey, and OMV (four licenses each). DNO developing the hydrocarbon sector in the period between 2012 International ASA (DNO) of Norway and ShaMaran Petroleum and 2030. The Government revised its crude oil production Corp. of Canada held three licenses each. Crescent Petroleum capacity targets from 12 Mbbl/d to 9 Mbbl/d by 2017 owing to and Dana Gas (both of the United Arab Emirates), Doğan several challenges that needed to be resolved for the optimistic Enerji of Turkey, Komet Group of Moldova, Oil Search Ltd. target to be realized. These challenges included the approval

49.4 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2012 of the Hydrocarbon Law by the Parliament, resolution of Iraq Geological Survey, 2012, Bentonite activation project: Iraq Geological the issue of deals made between the KRG and international Survey. (Accessed August 18, 2012, at http://www.geosurviraq.com/ar/ index.html.) oil companies, and generating sufficient electricity in Iraq Geological Survey, 2013, Future horizons: Iraq Geological Survey. production sites (MEED, 2013, p. 10; U.S. Energy Information (Accessed August 18, 2013, at http://geosurviraq.com/en/Investment File/ Administration, 2013). index.html.) The mineral industry in Iraq is expected to grow considerably Iron and Steel State Co., 2013, Company news: Iron and Steel State Co. (Accessed August 15, 2013, at http://www.steel-iraq.com/index.php?option= in the short and medium terms to meet the increased demand com_content&view=category&layout=blog&id=38&Itemid=71.) for mineral commodities needed for the restoration of the Mass Group Holding Ltd., 2013, Iron and steel: Mass Group Holding country’s infrastructure and for the development of the Ltd. (Accessed June 18, 2014, at http://www.massgroupholding.com/ country’s hydrocarbon sector. The production of such mineral MassPages.aspx?PID=66&lang=en.) MEED, 2013, Iraq to invest $600 bn on oil and gas until 2030: MEED, v. 57, commodities as bentonite, cement, fertilizer, limestone, no. 32, August 9, p. 10. phosphate rock, steel, and sulfur is expected to increase in the Ministry of Industry and Minerals, 2013, Investment opportunities: next few years. Ministry of Industry and Minerals. (Accessed September 18, 2013, at http://www.industry.gov.iq/engl/index.php?name=Pages&op=page&pid=85.) References Cited Ministry of Natural Resources of Kurdistan Regional Government—Iraq, 2013, KRG Ministry of Natural Resources production sharing contracts: Ministry Afren p.l.c., 2013, Operations—Kurdistan region of Iraq: Afren p.l.c. of Natural Resources of Kurdistan Regional Government—Iraq. (Accessed (Accessed August 19, 2013, at http://www.afren.com/operations/ August 15, 2013, at http://krg.org/p/p.aspx?l=12&r=296&p=1.) kurdistan_region_of_iraq/.) Ministry of Oil, 2012, Iraq’s fourth petroleum licensing round Al-Bassam, K., Frenette, G.L., and Jasinski, S.M., 2012, Phosphate deposits of Block 8 contract area—Bidding results: Ministry of Oil press release, Iraq: PHOSPHATE 2012, El-Jadida, Morocco, March 20, presentation, 22 p. May 31. (Accessed September 18, 2012, at http://www.oil.gov.iq/moo/ Annous, Omar, 2012, Rebuilding drives up cement demand: MEED, v. 56, feeds.php?lang=en&page_name=news&id=395.) no. 34, August 24. Mirza, Adal, 2013, Basra Gas Company starts operations: MEED, v. 57, no. 14, Arab Fertilizer Association, 2012, Fertilizer statistical yearbook 2011: Cairo, April 5, p. 11. , Arab Fertilizer Association, 68 p. OMV Aktiengesellschaft, 2013, Annual report 2012: OMV Aktiengesellschaft, Arab Steel, 2012, CVS rolling mill (Turkey) to launch FF Steel rebar project in 168 p. (Accessed August 20, 2013, at http://www.omv.com/portal/01/com/ Iraq: Arab Iron and Steel Union, December 18. (Accessed August 23, 2013, at /OMV_Group/Investor_Relations/Download_Center.) http://arabsteel.info/total/Long_News_Total_e.asp?ID=1090.) Organization of the Petroleum Exporting Countries, 2013, Annual statistical Basrah Gas Co., 2012, South Gas project: Basrah Gas Co. (Accessed bulletin 2012: Organization of the Petroleum Exporting Countries, March, 19, 2013, at http://www.basrahgas.com/about.) 108 p. (Accessed August 14, 2013, at http://www.opec.org/opec_web/ BP p.l.c., 2013, BP statistical review of world energy—June: London, United static_files_project/media/downloads/publications/ASB2013.pdf.) Kingdom, BP p.l.c., 45 p. O’Sullivan, Edmund, 2012, Lafarge says Iraq cement demand is growing Chazan, Guy, 2013, Iraq’s appeal wanes for oil majors: Financial Times 10 percent a year: MEED, June 12. (Accessed September 14, 2012, at [London, United Kingdom], March 17. (Accessed July 16, 2014, at http://www.meed.com/sectors/industry/lafarge-says-iraq-cement-demand-is- http://www.ft.com/intl/cms/s/0/c51d29fc-85c4-11e2-9ee3-00144feabdc0.html# growing-10-per-cent-a-year/3141270.article.) xzz38JwotkXY/.) State Company for Fertilizers, 2013, Historical abstract: State Company Cutler, David, 2012, Factbox—Oil deals with Kurdistan: Thomson Reuters, for Fertilizers. (Accessed August 15, 2013, at http://www.iraqisscf.com/ April 5. (Accessed September 19, 2012, at http://af.reuters.com/article/ aboutus_in.html.) energyOilNews/idAFL6E8F389E20120405?pageNumber=1&virtualBrand General Company for Phosphate, 2013, Akashat phosphate mine: General Company Channel=0.) for Phosphate. (Accessed February 24, 2014, at http://www.scpqiraq.com.) Dana Gas P.J.S.C., 2013, Operations—Kurdistan region: Dana Gas P.J.S.C. Steel Orbis, 2012, ArcelorMittal’s rebar JV in northern Iraq moves to Erbil: Steel (Accessed August 20, 2012, at http://www.danagas.com/en/project/ Orbis, March 3. (Accessed September 17, 2012, at http://www.steelorbis.com/ operations/iraq/kurdistan-region.html.) steel-news/latest-news/arcelormittals-rebar-jv-in-northern-iraq-moves-to- DNO International ASA, 2013, Operations—Kurdistan region of Iraq: erbil-674515.htm.) DNO International ASA, June 14. (Accessed August 15, 2013, at U.S. Energy Information Administration, 2013, Iraq: U.S. Energy Information http://www.dno.no/dno-operations/kurdistan-region-of-iraq/.) Administration country analysis brief, 12 p. (Accessed August 15, 2013, at Global Cement, 2013, News—Iraq: Pro Global Media Ltd. (Accessed http://www.eia.gov/countries/analysisbriefs/Iraq/iraq.pdf.) August, 19, 2013, at http://globalcement.com/news/itemlist/tag/Iraq.) World Steel Association, 2013, World steel in figures: World Steel Association, International Monetary Fund, 2013, Iraq—2013 Article IV consultation: 31 p. (Accessed August, 15, 2013, at http://www.worldsteel.org/publications/ International Monetary Fund, July 19, 59 p. (Accessed August 25, 2013, at bookshop.html?bookID=704c467d-8c30-4980-8720-04a743f91965.) http://www.imf.org/external/pubs/cat/longres.aspx?sk=40802.0.)

Iraq—2012 49.5 TABLE 1 IRAQ: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity 2008 2009 2010 2011 2012 INDUSTRIAL MINERALS Bauxite 4,928 250 3,350 -- -- Bentonite2 1,605 3,959 6,127 6,472 1,004 3 Cement, hydraulice thousand metric tons 6,453 7,000 8,000 10,000 10,000 Clay do. 1,777 2,283 2,283 33,013 r 33,380 Gypsum2 do. 1,279 626 r 1,674 r 16,350 r 13,531 Iron oxide pigments 3,000 300 r 3,000 -- r -- Kaolin 1,524 1,980 20,060 r -- -- Limestone: For cement thousand metric tons 275 2,005 986 4,086 r 4,648 For construction do. NA NA NA 585 326 Nitrogen: N content of ammonia do. 10 30 126 143 143 N content of urea do. NA NA 100 129 129 Phosphate rock, gross weight do. NA NA 139 122 r 250 Phosphate fertilizer do. NA NA 331 429 450 Salt do. 109 113 102 136 143 Sand and gravel2 do. 9,734 r 10,834 r 10,139 21,300 r 23,181 Silica sand2 19,921 17,514 232 173 r 1,439 Sulfure thousand metric tons 30 20 20 20 20 MINERAL FUELS AND RELATED MATERIALS Gas, natural: Gross million cubic meters 14,781 16,577 16,885 18,692 20,496 Dry do. 1,880 1,149 1,303 877 646 Natural gas plant liquids thousand 42-gallon barrels 11,000 15,000 r 16,000 r 16,400 r 16,400 e Petroleum: Crude, including condensate do. 886,220 891,330 905,200 1,022,365 r 1,136,975 Refinery products: Liquefied petroleum gas do. 11,060 2,482 r 3,139 r 3,285 r 3,614 Gasoline do. 21,864 21,937 26,207 27,521 27,886 Kerosene and jet fuel do. 17,119 17,477 19,892 31,901 16,242 Distillate fuels do. 30,551 31,208 37,339 47,486 46,574 Residual fuels do. 76,468 76,979 89,973 79,278 103,076 Other do. 8,358 16,609 r 24,945 r 44,370 r 3,891 Total do. 165,420 166,692 r 201,495 233,841 201,283 eEstimated; estimated data are rounded to no more than three significant digits; may not add to totals shown. rRevised. do. Ditto. NA Not available. -- Zero. 1Table includes data available through February 28, 2014. 2Reported in cubic meters and converted to metric tons. 3Reported figure.

49.6 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2012 TABLE 2 IRAQ: STRUCTURE OF THE MINERAL INDUSTRY IN 2012

(Metric tons unless otherwise specified)

Major operating companies Annual Commodity and major equity owners Location of main facilities capacity Cement: Portland Southern Cement State Co. (Government, 100%) Al Basrah plant, An Najaf Al Ashraf plant, 7,500,000. plant, Muthena plant, Nora plant, As Samawa plant Do. Iraqi Cement Co. (Government, 100%) Al Qaim plant, Al Qaim; Kirkuk plant, Kirkuk; 5,200,000. Fallujah plant, Fallujah; and Kubaisa plant, Kubaisa Do. Northern Cement State Co. (Government, 100%) Al Tamin plant, Badoosh I, II, and III plants, 3,740,000. Hammam Al Aleel I and II plants, ; and Sinjar plant, Mosul Do. Bazian Cement Company (Lafarge S.A., 70%, and Bazian plant at Sarchinar, near Hayasi 2,700,000. Faruk Group Holding, 30%) Do. United Cement Company (Lafarge S.A., 60%, and Tasluja plant, near Sulaymaniyah 2,300,000. Faruk Group Holding, 40%) Do. Karbala Cement Manufacturing Co. (Lafarge S.A., Karbala plant, Karbala 1,800,000. 51%, and MerchantBridge Co., 49%) White Iraqi Cement Co. (Government, 100%) Fallujah white cement plant, Fallujah 300,000. Nitrogen thousand State Enterprise for Fertilizer and Petrochemical Ammonia plant at Abu Al-khasib 230 ammonia; metric tons (South) (Government, 100%) 350 urea. Do. do. State Company for Fertilizers Northern Area Plant at Bayji 231 ammonia; (Government, 100%) 202 urea. Do. do. 1st Global Company for Chemical Fertilizers Al Mansour, 369 ammonia; Production Ltd. 323 urea. Iron and steel1 Iron and Steel Co. (Government, 100%) Khawr az Zubayr, Al Basrah Governorate NA. Petroleum: Crude thousand 42-gallon BP p.l.c., 38%; China National Petroleum Rumaila, Al Basrah Governorate 1,350. barrels per day Corp. (CNPC), 37%; South Oil Co., 25% Do. do. China National Petroleum Corp. (CNPC), 75%, and Al-Ahdab, 140. North Oil Co., 25% Do. do. China National Petroleum Corp. (CNPC), 37.5%; Halfaya, 70. South Oil Co., 25%; Petronas Carigali International Sdn Bhd, 18.75%; Total S.A., 18.75% Do. do. CNOOC Ltd., 63.75%; Iraq Drilling Co., 25%, Maysan, Maysan Governorate 450. and Türkiye Petrolleri Anonim Ortaklığı (TPAO), 11.25% Do. do. DNO International ASA, 55%; Genel Enerji A.S. Tawke, Kurdistan region 100. 25%; and Kurdistan National Oil Co. 20% Do. do. Eni S.p.A., 32.81%; Missan Oil Co., 25%; Zubair, Al Basrah Governorate 270. Occidental Petroleum Corp., 23.44%; Korean Gas Corp. (Kogas), 17.75% Do. do. Exxon Mobil Corp., 60%; Royal Dutch Shell West Qurna 1, Al Basrah Governorate 400. plc, 15%; Oil Exploration Co., 25% Do. do. Gazprom OAO, 30%; Oil Exploration Co., 25%; Badra, Wasit Governorate 170. Korean Gas Corp. (Kogas) 22.5%; Türkiye Petrolleri Anonim Ortaklığı (TPAO), 7.5% Do. do. Lukoil Oil Co., 56.25%; South Oil Co., 25%; West Qurna 2, Al Basrah Governorate NA. Statoil ASA, 18.75% Do. do. North Oil Co. (Government, 100%) Kirkuk, 280. Do. do. Petronas Carigali International Sdn Bhd, 45%; Garraff, 35. Corp., 30%; South Oil Co., 25% See footnotes at end of table.

Iraq—2012 49.7 TABLE 2—Continued IRAQ: STRUCTURE OF THE MINERAL INDUSTRY IN 2012

(Metric tons unless otherwise specified)

Major operating companies Annual Commodity and major equity owners Location of main facilities capacity Petroleum—Continued: Crude—Continued thousand Royal Dutch Shell plc, 45%; Petronas Carigali Majnoon, Al Basrah Governorate 18. 42-gallon International Sdn Bhd, 30%; Missan Oil barrels per day Co., 25% Do. do. Sociedade Nacional de Petróleos de Angola Qiayarah, Ninawa Governorate 120. (Sonagol), 75%, and South Oil Co., 25% Do. do. Sociedade Nacional de Petróleos de Angola Najmah, Ninawa Governorate 110. (Sonagol), 75%, and North Oil Co., 25% Do. do. Taq Taq Operating Co. Ltd. (Genel Enerji A.S., 55%, Taq Taq, Kurdistan region 105. and Addax Petroleum Corp., 45%) Refinery products do. Midland Refineries Co. (Government, 100%) Daura refinery at Daura 142,300. Do. do. Kar Oil & Gas Co. (private) Erbil 40,000. Do. do. North Refineries Co. (Government, 100%) (Salahudin) 135,800. Do. do. do. Baiji (North) 170,000. Do. do. South Refineries Co. (Government, 100%) Al Basrah Governorate 142,300. Do. do. do. Kirkuk 30,000. Do. do. do. An Najaf Governorate 30,000. Do. do. do. Nassiriyah- 30,000. Do. do. do. 16,000. Do. do. do. Khanagin/Alwand 12,000. Do. do. do. Muftiah 4,500. Do. do. do. Qaiyarah-Mosul 4,000. Phosphate rock General Company for Phosphate (Government, 100%) Akashat Mine, Al Anbar Governorate 3,400,000. Phosphoric acid1 do. Plant at Al-Qaim 400,000. Phosphatic fertilizer2, 3 do. do. 600,000 TSP; 280,000 MAP; 650,000 NPK. Sulfur Mishraq Sulphur State Enterprise (Government, 100%) Qaiyarah 820,000. Sulfuric acid1 General Company for Phosphate (Government, 100%) Phosphatic fertilizer plant at Al-Qaim 1,500,000. Do., do. Ditto. NA Not available. 1No production has been reported since 2003. 2The fertilizer production unit U400 produces triple superphosphate (TSP), monoammonium phosphate (MAP), and compound fertilizer (NPK). 3Fluoride salts production unit U500, which had the capacity to produce 11,000 metric tons per year of aluminum fluoride, was idle for technical problems but was being used to produce unknown quantities of ammonium chloride, pure silica, silica gel, sodium fluorosilicate, sodium phosphate, and zeolites.

49.8 U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2012