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

IMIDRO Empowerment of Mine & Mining Industry in Iran IMIDRO Exclusive Inauguration Second Phase of Sepiddasht Steel Factory

anaging Director of Mobara- He said the unit consists of reduc- keh Steel Company, speaking tion stage (converting pellet to sponge $37bn Worth of Mat the inauguration ceremony Dr. Sobhani remarked iron) and steelmaking stage (converting of the first provincial steel project in that 65 percent of sponge iron to slab) and the production Sepiddasht, Chaharmahal and Bakhtiari, stage (steel ingot). said for the operation of the second phase the shares of the Sobhani said: “Implementation of Mobarakeh Steel Products of the project – ingot producing factory the plan started in 1385 (2006/07) and its – a fund of 3070 billion rials has been al- manufacturing unit direct reduction unit has been completed located. He added that project is expected have been invested and become operational.” He noted that obarakeh Steel Mill is betting edge-based industrial enterprises are mineral industries as the best grounds to become operational in the second half by Mobarakeh Steel 70% of the equipment of the second on a new continuous casting among the main targets of the Economy for industrial development, he said, “We of 1397 (2018/19). phase which is steelmaking has been Mmachine with a 1.8 million-ton of Resistance. have huge plans for developing the coun- According to the Public Relations Company and the transported to the factory and according annual production capacity for its expan- Iran boasts of huge natural resourc- try’s oil and gas fields.” Office of IMIDRO (Iranian Mines and to projections will become operational in sion plans. es, capabilities and efficient manpower, The VP also referred to Mobarakeh Mining Industries Development and remaining 35 percent the second half of 1397 (2018/19).” First Vice-President Eshaq Jahangiri he said, noting that using the capacities, Steel as a company of international sta- Renovation Organization , Dr. Bahram by IMIDRO. Stressing that in this project one said that avoiding crude selling and pro- the country’s industrial complexes can be tus and major symbol of the country’s in- Sobhani put the fixed amount of invest- million tons of slab and hot roll will be ducing high value-added products is the promoted to their due status. dustry, saying that the company has now ment for the project at 5,250 billion rials produced, Dr. Sobhani noted that with the most significant program of the Economy Janagiri said that energy resources turned into a developmental institute, and noted that 64 million euros has been ister of industry, mine and trade and head implementation of the project direct em- of Resistance. should not be exported without getting among ten major steel producers across allocated to the project in hard currency of the executive board of IMIDRO. ployment will be provided for 140 people Addressing inaugural ceremony turned into value-added. the world. investment. Dr. Sobhani further remarked that 65 and indirect working opportunities for (Nov. 3) of Foulad Mobarakeh Casting Calling for correct planning for in- Noting that 84 percent of Mobara- The first phase of Sepiddasht Steel percent of the shares of the manufactur- another 800 people. Machine No. 5 in Isfahan (early No- dustrial development, he said experts keh Steel’s equipment, parts and raw started operation with a production capac- ing unit have been invested by Mobara- Chaharmahal and Bakhtiari Steel vember), Jahangiri said that promoting should first know which parts of the in- materials are manufactured domestically, ity of 800 thousand tons of sponge iron in keh Steel Company and the remaining 35 Complex is situated in Sefiddaasht, about capabilities, using natural resources’ ca- dustry are capable of development. Jahangiri said that steel industry should the presence of first vice-president, min- percent by IMIDRO. 30 km from Shahr-e Kord. pacities and manpower to set up knowl- Describing natural resources and be further promoted.

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in the complex amounts to 4.5 million 1000 factories directly and about three Isfahan for the construction of the waste- Steel Output to Hit 50 Million Tons tons per year, he further remarked that thousand others indirectly are using steel water network in the two cities. in 6 Years Dr. Sobhani said: the goal of the company is to gain access products of Mobarakeh. Dr. Sobhani pointed Stressing that in return for the con- “With the operation to the production of crude steel up to 2.7 The MSC managing director said out that in the past struction of the wastewater network in Minister of Industry, Mine and Trade million tons per year. Sobhani noted that three large steel production complexes the two cities, MSC will collect the urban Mohammad-Reza Nematzadeh said that of the casting machine all the phases of design, transportation in the country, namely Mobarakeh Steel year despite the wastewater and use it in its production crude steel production will reach from the the capacity of steel and installation of the equipment of the Complex, Saba and Hormuzgan Steel are recession,1.8 million cycle, Sobhani said the project, which is current 17 million tons to 50 million tons casting machine No. 5 were completed considered to be the subsidiaries of MSC. for the supply of 450 liters per second of in the next six years. production in the country within 28 months and with an investment He pointed out that in the past year tons of Mobarakeh water needed by Mobarakeh Steel Com- Addressing the inaugural ceremony increased by more than of 5020 billion rials. despite the recession,1.8 million tons steel products were sold, plex, has made 80 percent progress. of Foulad Mobarakeh Casting Machine Referring to 22 percent share of of Mobarakeh steel products were sold, in Isfahan, he said that steel production 8 percent. ” Mobarakeh Steel Complex in production adding that 54 percent of the exports adding that 54 percent $37bn Worth of should increase to meet local demand. of steel sheets in the Middle East and were to the European Union. “This of the exports were to Mobarakeh Steel Products Noting that priority is with domestic will provide jobs for 100 people directly North Africa, Sobhani said MSC is the shows the high quality of the products consumers, the minister said that Isfahan and 150 indirectly, he said. biggest producer of steel sheets in the of this company,” he stressed, noting the European Union. MSC managing director, pointing to boasts of higher capabilities to manufac- Middle East and North Africa. that the plans for the degassing station, the value of the products of the company ture equipment for steel industry. Rise in Mobarakeh Steel He added: “Mobarakeh Steel desulfurization station, briquetting of cases up to the year 1397 (2018/19) or up to 1395 (2016/17), said the products Nematzadeh hoped that all parts Output Capacity Complex and its subsidiary units are Martyr Kharrazi, production of deionizer will be put in the tender process, adding worth $37 billion of which 72 million needed would be manufactured inside the considered the biggest sponge iron water and casting machine No. 5 have that designing is underway for the devel- tons have been supplied to the domestic country. Managing director of Mobarakeh producing company in the world,” saying, been implemented to improve the quality opment projects up to the year 2025. Sob- market and 17 million tons to foreign Today, German and Italian credited Steel Complex said with the inauguration “the company produces 12 million tons of MSC products.” hani added that there are 13,150 direct markets. companies are demanding investment in of the casting machine No. 5 some 33 of sponge iron and has 1 percent share in employments in Mobarakeh complex, Stressing that 54 percent of the MSC Iran’s steel industry, he said, noting that percent or 1.8 million tons has been gross domestic product and 5 percent in Designing MSC Development 920 in Saba and 1,673 in Hormuzgan and products in the seven months of the cur- many firms are using Iranian steel prod- added to the production capacity of the the industrial sector.” Projects Underway up to 2025 noted the total direct and indirect employ- rent calendar year (up to October) have ucts and there are good markets for steel industrial complex. Stressing that the process of stone ments in the complexes belong to MSC at been exported to the EU countries, he said sheets across the world. Dr. Bahram Sobhani, speaking at to coil (the process of iron ore up to the MSC managing director, pointing about 350 thousand. Pointing to the im- this shows the high quality of Mobarakeh “We should not think only about the operation ceremony of the casting coil production) is done in Mobarakeh to the production plans of the company plementation of the plan for the construc- steel products and their conformity with exports; rather, we should strive to set up machine No. 5, said with the operation of Steel Complex, he added that about 2,800 in 2025 horizon said the plant has so far tion of sewage network of the cities of international standards. He added that 38 steel factories abroad,” he said. the casting machine the capacity of steel upstream companies are cooperating produced about 50 percent of the steel re- Mobarakeh and Lenjan, he said for reduc- percent of the products have been export- Mobarakeh Casting Machine Proj- production in the country increased by with the MSC. Pointing to the fact that quirements of the country. He said devel- ing dependency on Zayandeh Rud water, ed to the Middle East and 8 percent to the ect, which was commissioned within 28 more than 8 percent. over 84 percent of the company’s needs opment plans projected for Mobarakeh the complex has signed agreements with Far East in the first seven months of the months at the cost of 5.020 billion rials, Noting that production of crude steel are met domestically, Sobhani said about complex will be implemented in some the Water and Wastewater Company of current year.

4 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 5 in this issue IMIDRO Exclusive

The Forum for Partners in Iran’s Marketplace

Seyed Hussein Sanaei Chairman & Editor-in-Chief Khosrow Soltani Editor JCPOA S. Razmkhah, S. Khoshroo, A. Bakhtiari Senior Consulting Editors Leilasadat Sanaei Art Director Photos Was a Very Great Deal Mohammadreza Moradabadi Elc. Reproduction Johari Printing and Binding Forough Danesh For editorial, advertising, subscription and information services please contact: E-mail: [email protected] Tel: (+98 21) 22 666 450 Fax: (+98 21) 22 666 451 P.O.Box: 19615-1111 Tehran-Iran Inauguration Second Phase of Sepiddasht Steel Factory 2 www.iraninternationalmagazine.com www.iraninternationalmagazine.ir www.iraninternational.ir $37bn Worth of Mobarakeh Steel Products 3 ISSN: 1029-8061 Iran International is a trade and JCPOA Was a Very Great Deal 7 Dr. Mehdi Karbasian, economic quarterly distributed globally. Managing Director of IMIDRO

Iran International: “The Forum for Mineral Exploration Top Priority of Mining Sector 9 senior Iranian economist says the partners in Iran’s Marketplace.” This is the motto adopted by the full-color quarterly agreement signed over Iran’s nu- Iran International since its emergence in National Iranian Copper Industries Co. 10 clear program last year was a very June 1998. Iran International focuses on A good deal. the theme of partnership in various sectors The Joint Comprehensive Plan of of economy, trade, industry and culture. IMIDRO’s Development in Last Three Years 16 Action (JCPOA) known commonly as Readership & Circulation: Iran Iran deal or Iran nuclear deal, is an inter- International is regularly distributed Adopting New Strategies 21 national agreement on the nuclear pro- among its targeted audience who include gram of Iran reached in Vienna on 14 July economic, industrial, political and cultural circles in Iran and around the world. Iranian IMIDRO: Empowerment of Mine and Mining Industry in Iran 22 2015 between Iran, the P5+1 (the five decision-makers, government officials, permanent members of the United Na- industrial executives, top contractors, major tions Security Council—China, France, Stressing that prior to Iran nuclear list are now providing the conditions commercial and financial organizations, IMIDRO Signs Deals with Foreign Companies 34 Russia, United Kingdom, United States— deal, even the government itself had to to guarantee projects and investments. trade partners of Iran, potential investors, joint chambers of commerce, global plus Germany), and the European Union. transfer money outside Iran through for- Guarantee funds such as Sache, Hermes, banks, international companies based in Sponge Petroleum Coke 36 In response to this group of people, eign exchange shops, he noted that the Kefas, Sanchez, and the funds of South Iran, industrial plants within the country, Dr. Mehdi Karbasian, Chairman of the objective transfer of money took place Korea and Japan which once would not embassies, cultural centers, tourist and Iranian Mines and Mining Industries through agents such as Babak Zanjani. even guarantee one dollar, after the trip travel agencies and international bodies Tehran to Host IMIS 2016 37 form the main readership of the magazine. Development and Renovation Organiza- Referring to the fact that during the of President Rouhani and negotiations All articles and advertisements of the tion (IMIDRO) said: “We should admit sanctions many large international com- with them by the IRI Central Bank have latest issue are always accessible at the Iran’s Mining Sector Statistics 38 that JCPOA was a very great deal. The panies had cut off their relations with Iran, started their relationship.” magazine’s three web sites. question is if the agreement had not been Karbasian reminded: “In the area of mine The deputy minister, stressing that Publications: In addition to its four regular IMIDRO Will Commission 28 Projects Worth $1,420 Million 42 signed, what would be the economic situ- and mining industries companies like Rio the banks have also solved their prob- issues coming out in June, September, ation of the country today? This is a re- Tinto and PHP did not even respond to lems to some extent, said that now in December and March, the magazine IMIDRO Changing Product Development Strategy 44 ality that is overlooked especially in the our emails nor would their CEOs travel to the area of mine and mining industries publishes special issues on occasion. political field some events are quickly Iran for negotiations. Several delegations best international consultants have been forgotten.” from Europe and Asia have come to Iran applied in the field of brine and the Salt Clients: In each edition, Iran International POSCO Inks €1 bn Agreement with IMIDRO 45 has had the pleasure of featuring the Speaking in a press interview, Kar- for joint investment, market review and Lake. This issue in other sectors such as promotional items of global players and basian added: “This is a historical prob- even funding projects and have held talks the rare earth elements, titanium, iron ore, national companies that have a key role in An Attractive Station for Foreign Investors 47 lem and I believe that although we have with Iranian sides.” gold and steel has led to the arrival of new development of industry and economy. Our main clientele come from diverse fields of a good memory about history, very soon The IMIDRO chief added: “Ex- technologies into the mineral industries Oil & Gas, Chemicals & Petrochemicals, Iran’s Successful Presence in IMARC Melbourne 50 we forget great decisions and everything port guarantee funds in Europe and Asia which ultimately entail transfer of tech- Industries, Mines & Metals, Automotives, would lose color.” which once had put us in their black nology, he said. Aviation & Tourism, Banking & Finance.

6 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 7 IMIDRO Exclusive

Our articles Mineral Exploration Top and your ads Priority of Mining Sector

on everyone’s eral exploitations will be carried out by Iranian Mines and Mining Industries De- velopment & Renovation Organization monitor (IMIDRO) especially at border areas in case the private sector does not welcome this issue. Announcing that exploitation activi- ties have started jointly with Iran Atomic Energy Organization in the recent months on 100,000 sq km of area, he said, “In this way besides exploiting radioactive min- www.iraninternationalmagazine.com erals, we can attain other needed domes- www.iraninternationalmagazine.ir The question is if the tors with 30 years of work experience tic and foreign strategic elements with the will definitely consider the principles of www.iraninternational.ir assistance of universities and within the agreement had not been the “resistance economy” and the nation- course of research activities.” signed, what would be the al economy in their international negotia- Nematzadeh said after the Joint tions. “Fortunately, with the presence of Comprehensive Plan of Action (JCPOA), economic situation of the monitoring systems such as the Majlis on average 5 to 6 ministers and foreign country today? This is a Research Center and the Inspectorate Or- delegations arrive in Iran every week. ganization and other similar supervisory This provides a good opportunity for Ira- reality that is overlooked institutions, there is no room for such nian engineering and exploitation compa- Join the expanding especially in the political concerns.” nies to negotiate with them and form joint He said: “Today JCPOA has enabled forum for partners in consortiums to follow up mines engineer- field some events are us to establish relations with the world re- ing affairs. Iran’s marketplace. quickly forgotten.” search institutions and valid international Like the industry sector, most of Ira- companies for receiving new equipment See yourself on paper, hat is important in the mining nian mines and mineral industries are in and modern technologies; for example, sector is exploration, which It is necessary that need of renovation and rehabilitation, he He further remarked: “Obviously, the Zarshouran gold mine, was one of the check yourself on Whas not received due attention, mineral materials should said, adding that maintenance and repair some people may have expected early projects which was abandoned under the waves and be met by said Minister of Industry, Mine and Trade of heavy duty machinery would be made results in the area of economy but we sanctions and now we exert utmost ef- Mohammad Reza Nematzadeh, adding be processed and turned possible by using foreign facilities. In this should bear in mind that there was too forts to raise its output to actual level.” growing number of that only 7 to 8 percent of the country has into products and if way, about 40 percent of the price of min- much and perhaps exaggerated publicity Referring to the employment of one eyes that are looking been explored and exploited in terms of eral machinery would be reused. which naturally raised the expectations.” of the international companies as consul- mining. required foreign partners He said it was true that the comple- Karbasian recalling his memories tant, Karbasian said: “These consultant our way. Stressing that mineral explora- be used in order to create tion of the production cycle would go regarding purchase of airplanes under the companies previously were not ready to tion should be followed up seriously, he back to the industry sector, however, in sanctions said: “Between 2005 and 2009 I speak with us; I am really sorry to say this, said 47 billion tons of minerals exist in jobs inside the country. the mining sector the sale of any kind of was in charge of the Oil Retirement Fund but in the first two years of my respon- the country, 60 percent of which include crude minerals should be prevented. and we decided to purchase two airplanes sibility in IMIDRO when we intended construction materials such as limestone, by the office of deputy minister for Mines It is necessary that mineral materi- for one of the oil subsidiary companies, to hold talks with the consultant compa- sand and plaster. Metal and non-metal and Mineral Industries over 400,000 km als should be processed and turned into i.e. Oil Aviation Company. However, nies they would tell us come to Turkey or minerals and products comprise the rest. and 90 mineral zones have been released products and if required foreign partners due to the international sanctions nobody Dubai. But now, their directors would ask Stating that 68 types of miner- and transferred to the private sector in the be used in order to create jobs inside the would sell us airplanes. I remember, we for appointments in order to talk with us. als have been identified in the country, past two years. country. finally managed to purchase two- air These are the positive points of JCPOA Pay once for a Nematzadeh said, “We should be able to Of course, he said, priority in trans- Stressing that creative and innova- planes, one of which was Fokker F100, agreement that are overlooked by some.” exploit this God-given gift and simultane- ferring was given to the companies and tive youth comprise the main assets of the through one of our companies abroad.” He concluded by saying: “True that triple value. ously by using new technologies develop miners which enjoyed the necessary ex- country, he said, “We follow a win-win He added: “This difficulty existed some people still do not touch the fruits it thoughtfully and wisely and manage to pertise and capabilities or were ready for policy in dealing with foreign partners for Mahan Aviation Company as well and of this agreement and for the same reason create value added and ultimately valu- merger, in case of being small in dimen- and intend to launch joint (50-50) produc- they made their purchases with difficulty.” the West should accelerate its pace of able products and export the surplus. sions. tion. We also intend to export our surplus IMIDRO chairman noted that direc- cooperation.” He said thanks to the planning made The minister added that major min- products to the target countries.”

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National Iranian Co pper Industries Co.

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the company potentials for increasing productivity and reducing unnecessary costs. The company was successful in reducing over 13 percent of the finished cost of the copper concentrate between 1393 (2014/15) and 1394 (2015/16) and lower it from 111 to 96 ton/mil- lion rials. In continuation of this trend up to the end of the first half of 1395 (2016/17), this figure decreased by 24 percent and dropped from 96 to 73 ton/ million rials. In addition, the finished cost of cathode copper from 1393 (2014/15) to 1394 (2015/16) decreased from 155 to 146 ton/million rials. As of 1394 (up to the end of the first half of 1395, this fig- ure decreased by 14 percent and dropped from 146 to 126 ton/million rials). These measures caused the company to maintain its competitive potential and control over its share in the international markets. The major cost reduction has been through lowering costs of energy, repair, and purchase of equipment, materials and parts, and modification of production schedule. In this period with the implementation of productivity projects for energy, gas consumption – water and electricity Performance of Morad-Alizadeh in company output had remarkable cuts, which was the basis for the drop in finished costs. indicates his experience and commitment. During Since 1392 (2013/14) up to the this period, in addition to improving the methods and present the required geological studies and alterations at different scales were reducing direct and overhead costs, he has registered conducted in the provinces of Yazd, a growth rate of 26 percent in extraction of sulfuric Kerman, South Khorasan, Sistan- stone and 5 percent in total extraction. hmad Morad-Alizadeh who production of cathode copper made a cuts and increase in costs. Therefore, Baluchestan, Khorasan Razavi, Isfahan was in charge of the National growth of 4 percent and of mineral rich the principle of competitiveness and and East Azarbaijan. AIranian Copper Industries copper 34 percent. relative advantage is highly important After revision in the development and these mines had either no reliable preparation of geological, geochemis- Company and was hailed as a successful One of the main objectives of the at this time. projects and examining the exploration reserve and acceptable alloy or no try and geophysics land and aerial maps director, was reinstated under the NICICO since 1392 (2013/14) has With the opportunities provided situation as well as the measures taken complementary explorations had been by using new exploratory technologies Rouhani government and this time too been paying attention to sustainable in the post-sanctions era and changes in those years, it was realized that made for them but different factories in line with finding promising regions he proved to be a brilliant manager. development and safeguarding mines made in the NICICO management team enough excavations have been made had made orders to the foreign side. with an aim to explore on concealed ore Performance of Morad-Alizadeh through adoption of new policies and the company succeeded in changing the in active mines, new and promising Therefore, the company strategy with deposits, exotic and skarn deposits and in company output indicates his experi- methods of extracting copper ore from trend of its movements and repaid over regions. Also, for continuation of respect to all the economic parameters diversification of target mineral sub- ence and commitment. During this pe- the heart of the nature. At present with $42 million of its debts by the first half excavation activities follow-up and and the previously conducted drillings stances of copper, gold, molybdenum, riod, in addition to improving the meth- the drop in copper alloy mines grade, of 1395 (2016/17). area studies in new regions are needed was directed towards regional line, etc. types. ods and reducing direct and overhead any full alloy of copper is prevented in With regard to the market situ- to find new promising lands. exploration; follow up exploration and In this regard, follow-up studies costs, he has registered a growth rate order to save the copper industry for the ation, such an important task could Meanwhile, in the section of mines surface exploration as well as drilling have been conducted in the provinces of of 26 percent in extraction of sulfuric generations to come. be done only through increasing pro- development exploration, the mines operations in different areas of active East Azerbaijan and Kerman in an area stone and 5 percent in total extraction. During the past six years the price ductivity and reducing finished costs. which were expected to provide the mines and new promising areas. of more than 9000 square meters since Production of copper concentrate of copper on world markets took a Morad-Alizadeh put preservation of the required feed for condensation plants According to the new exploration 1394 (2015/16). Plans are on the agenda has made a growth of 37 percent and downward trend and resulted in falling human capital and work force on his such as Nuchon, Songoon 3, Masjed strategy, concentration on exploration of the exploration department for extraction of concentrate rich copper revenues of copper companies. The agenda and had no plan to downsize the Daghi, Haft Cheshmeh, etc., exploration activities is based on regional follow-up conducting regional follow-up studies made 38 percent growth. Meanwhile, sanctions in turn resulted in revenue company. Therefore, he mobilized all has been conducted at a very low level exploration, surface activities including in south of Kerman Province, Semnan,

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ing will become operational by the end With the opportunities of 1395 (2016/17). The investment for provided in the post- the projects amounts to 23130 billion sanctions era and changes rials. Meanwhile, the total investment figure for the mentioned projects and made in the NICICO other 18 prioritized plans of the NICIC management team the is over 150170 billion rials. The amount of capital required company succeeded in by the company after revision in changing the trend of its development projects for realization of the targets in 1400 (2021/22), is 60000 movements and repaid billion rials which should be financed over $42 million of its by resources out of the company. debts by the first half of 1395 (2016/17). Latest Status of NICIC Projects Total investment No. Project Operation year Billion/rial West Azarbaijan and South Khorasan in University of Canada (for North- on the experiences of the new team 1. Development of Sarcheshmeh Melting 1395 (2016/17) 11,740 an area of approximately 12000 square west regions) and with the observation of technical, 2. Infrastructure of Sarcheshmeh condensation factories 1397 (2018/19) 4,570 kilometers. Also, planning in the area The policy of the company is ap- economic and environmental problems, 3. Construction of Kerman acid factories 1396 (2017/18) 7,440 of conducting basic geophysical studies plication of the latest world technology six projects were halted, three projects 4. Construction of Khatounabad refinery factory 1395 (2016/17) 6,360 (airborne) in an area of 17000 square and concentrating on exploration of were obliged to conduct complete 5. Darrehzar mine and condensation factory project 1398 (2019/20) 15,760 kilometers is in progress. In line with concealed deposits. technical and economic studies, nine 6. Khatounabad melting development project 1398 (2019/20) 5,690 implementing new explorations with projects received notifications to 7. Songoon heap leaching 1398 (2019/20) 1,340 an approach of concealed exploration, Revision of Development Projects change execution method and process 8. Songoon hydrometallurgy (leaching concentrate) 1398 (2019/20) 9,630 the National Iranian Copper Industries and 18 projects were put in priority 9. Chehel Koureh Zahedan mine and condensation factory project 1395 (2016/17) 2,760 Company with the cooperation of each The National Iranian Copper list. The management of these projects 10. Dar Alou mine and condensation factory project 1398 (2019/20) 15,570 of the following companies has forged Industries Company in line with the thus prevented losses and wastage of 11. Chah Firouzeh mine and condensation factory project 1398 (2019/20) 14,140 separate joint ventures: policies on copper production in the company resources. 1- Georgian I.M.B Company Fifth Development Plan (2005/06 The National Iranian Copper In- 12. Taft copper mine project 1399 (2020/21) 9,900 2- JOGMEC Company of Japan – 2013/14) took measures for the dustries Company in 1394 (2015/16) 13. Combined cycle power plant 1396 (2017/18) 12,100 3- British-Canadian International definition and implementation of 36 opened the two large projects of con- 14. Sarcheshmeh overhead flotation 1398 (2019/20) 900 Company Reservoir projects in mining, melting, refining densation of the second phase of Son- 15. Sarcheshmeh chemical fertilizer 1398 (2019/20) 6,350 4- Shahid Bahonar University of and other sectors. The ultimate goal goon Copper and condensation of the 16. Comprehensive water project 1398 (2019/20) 8,190 Kerman and UBS University of has been creation of development second phase of Sarcheshmeh Copper. 17. Comprehensive electricity project 1398 (2019/20) 3,350 Canada (for Southeast region) capacity on the basis of economic The first phase of Khatounabad refinery 18. Sarcheshmeh mine development project 1397 (2018/19) 2,990 5- University of Tabriz and UBS capacity of the melting units. Based and development of Sarcheshmeh melt- Total in billion rials (one euro = 40000 rials) 138,780

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bars will be offered in the market. The contract of the first phase of Ja- jarm Aluminum Plant, enjoying 37 thou- sand ton production capacity, is signed and the project has witnessed a remark- able progress. One of the major projects to be op- erational in this period was Mehdi Abad Lead and Zinc Plan. Despite being one of the largest mines in the world, it had been overlooked for a long time. Thanks to accurate planning, the problems with the former investor were solved and 7 industrialized countries ten- dered for the project. Finally, a consor- tium managed to obtain the project. The tender is considered as one of the most successful examples of overseas contract in the country. The section allo- cated to barite in the mine is launched in 2013 and is purchasing the product so far. The project will produce 800 thousand tons of zinc, as well as 80 thousand tons of lead and silver concentrates. Conse- quently, 1,000 job opportunities will be created. Some other projects to become operational include Graphite Electrodes, Sefidabeh Antimony, Hormoz and Hormozan plant, Zarshuran Gold, Khur and Biabanak Potash, Zarand Tar Refinery, four iron ore and pellet projects in Sangan, Energy Intensive Industrial IMIDRO’s Development Special Economic Zone, Kahnuj Titanium Processing, Equipment of Gol-e Gohar Mines (4-5 – 6), Khomrud Iron Ore and Green Coke. in Last Three Years Plans Set out in 11th Government and Projects Ahead

The Status of IMIDRO at the End of management style is clear indicating other projects were undertaken as joint IMIDRO is defined as the leading 10th Government and Major Decisions IMIDRO is defined as the a profound wisdom in decision- ventures with private sector entrepre- In spite of facing and most effective development orga- Reached Under the 11th Government leading and most effective making. IMIDRO devised its structure, neurs. Accordingly, the crisis in steel financial problems, the nization in the field of mine and mining accelerated its rules and started a new projects was handled and the plans were industry. The organization has remark- At the beginning of Government of development organization chapter without making a change in its undertaken. organization managed to ably increased the production capacity of Prudence and Hope, IMIDRO was the in the field of mine and human capital. Alumina production from Nepheline carry out its plans in the the country in the past 15 years, ceding a heir of 47 plans. Of these, 12 projects were This chapter made IMIDRO suffi- Syenite project was a long-awaited great number of its subsidiaries’ share in active and semi-active while 35 projects mining industry. ciently stable and the scientific decision- project (nearly three decades), halting new era of its activities. a privatization plan. were inactive. It was an unpleasant making based on technical and economic repeatedly due to various reasons. Some of these companies include situation for an umbrella organization Ministry of Heavy Industry, thus it bears feasibility studies paved the way for the Finally, in December 2014, IM- production of Nepheline Syenite under- Mobarakeh Steel Co., Khuzestan Steel like IMIDRO, posing a threat to its weighty economic and social responsi- development of the mine and mining in- IDRO entered into a contract with Outo- went a change of use and will be utilized Co., Iran Aluminum Co., Hormozal reputation. bilities. dustry sector, as well as creating full-time tec for the basic design of the plan. The for the production of boehmite. Aluminum Co., Al-Mahdi Aluminum Following the appointment of Mo- First, Karbassian gave an order employment. infrastructure of the project has been South Aluminum Plan has become Co., National Iranian Copper Industries hammad Reza Nematzadeh as Minister to develop two strategies. The first First, the eight provincial steel implemented and the project, with an an- operational since January 2015.The proj- Co., and several companies producing of Industry, Mine and Trade, the respon- strategy was supposed to be drawn up projects were evaluated. A plan was nual production capacity of 200 thousand ect will be the largest aluminum produc- lead, zinc, cement and other products. sibility of the leading organization of the within three weeks to formulate a plan of ceded completely to the private sector. A tons of alumina powder and 150 thousand ing unit in the country. Land, gas and IMIDRO has launched more than 110 ministry was entrusted to Dr. Mehdi Kar- the first year, whilst the second one was a new initiative was introduced to add to tons of industrial salt, will be launched in other infrastructure is provided and the projects valued at over $ 13 billion in the bassian. IMIDRO was rooted in Ministry medium and long-term strategy presented the methods of financing IMIDRO. By a coming future. On the other hand, Azar project is undertaken by a Chinese com- last 15 years. of Mines and Metals and is a part of the for the coming three years. A change in attracting private sector participation, 7 Shahr pilot which was set for the trial pany. Accordingly, the first aluminum In spite of facing financial problems,

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the organization managed to carry out its Sponge Iron Project (Fars), the first phase and mining industry all over the world. plans in the new era of its activities. of Jajarm Aluminum (North Khorasan) If foreign investors intend to partici- There has been some modification in and Kahnuj Titanium Pilot (Kerman). pate in the projects, the organization will the organizations’ financial plan in 2014 By March 2018, the organization offer new projects. and by defining new financing methods, will inaugurate and carry out 12 Iran is rich in great underground top priority was given to domestic and projects, while 5 projects will be put in reserves and energy. The country’s access foreign investment. to operation. In total, 73 projects will be to high seas and regional market opens Subsequently, the first phase added to the country’s undertaken plans up the opportunity of developing major of Zarshuran Gold and Cerro-azul by March 2020. economic plans. Cement (Venezuela) plans were become The plans include Chabahar Due to the drawn up plans, energy operational in 2014-15. Aluminum, Alumina Production from intensive industrial special economic Meanwhile, semi-stopped and halted Nepheline Syenite, Magnesium Oxide zones, Lamerd and Parsian, on the south- plans were activated as a result of adopt- production from Salt Lake (Qom), Jetty ern coast of the country, will allocate land ing various financial methods. of Parsian Energy Intensive Industrial to the ones interested in investment. The In 2014, nine projects including Special Economic Zone, as well as area will turn into a major hub for the pro- Sangan Iron Ore Concentrate (Khorasan Parvadeh 4 Coal. duction of steel, cement, aluminum and Steel Complex), Sangan Pelletizing petrochemical products in the region. (Tose-e Melli ), Savad Kouh Coal and Launching the projects in Jalalabad Iron Ore Beneficiation were “Prudence and Hope” government One Billion Dollars Investment started and entered into the operational in 10 Projects by 2015 phase. In 2016, over $1420 million IMIDRO’s measures in 2015 has investment will be made to launch and and inaugurated. Since 2013, IMIDRO made a great led to inauguration of 6 projects such as undertake 28 projects. In the following In other words, 73 projects ($ 11 attempt to finalize the projects having Zarand Tar Refinery, the second phase year, an investment of $ 1,000 million billion investment) are to be inaugurated optimum condition. Thus expert and of Persian Gulf Mining and Metal In- South Aluminum, Sangan Concentrate en in 2013 was revealed helping various will pave the way for the operation of and put into operation in 2014-20, operational teams were formed and the dustries Special Economic Zone, as (Mobarakeh Steel) and the production of provinces of Iran in achieving sustain- 12 projects, increasing the production creating 8,500 direct and 12,000 indirect plan was realized thanks to the attendance well as executing the extraction and rare earth elements and strategic metals able employment. Some of the projects capacity of the country. job opportunities. Of these, 20 projects of the senior managers. Subsequently, the sale contract of Gol-e-Gohar 5. Dur- are some examples of these projects. include: Sefidabeh Antimony (Sistan In addition, enjoying $4390 million are undertaken before 2014 and 53 plans organization launched 10 projects, valued ing the same period, 15 new projects In the current year, 28 projects will and Baluchestan), Sponge Iron Project investment, 17 projects will be launched are launched afterward, establishing at one billion dollars, by September 16. were carried out due to effective mea- be inaugurated and become operational. (Chaharmahal and Bakhtiari), Shadegan in 2018 and 8 projects, with $ 3,300 IMIDRO’s position as a development- These projects include Zarshuran sures and investments. Makran Steel, Likewise, the result of projects undertak- Sponge Iron Project (Khuzestan), Neyriz million investment, will be completed oriented organization in the field of mines Gold, Venezuela Cement, Al-Mahdi

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organization’s assets was ceded not only in a privatization project, but also as a compensation of the government’s debt to non-specialized companies. This Adopting New Strategies measure has resulted in a decrease in the income of the organization and caused some policy making problems. Some of the shareholders were seeking maximum interest and were not familiar with the concept of development and investment in this area. Following numerous changes in IMIDRO’s senior management position in the Tenth Government, the subsequent government came to the conclusion to appoint a person of great knowledge in financing, sustainable development, as well as international relation issues . Consequently, Mehdi Karbassian was assigned and the term of stability began in IMIDRO. IMIDRO has adopted new financial methods and made some changes in the strategies and quality policies. In his new approaches, Karbassian clearly addressed the officials to increase the income and resources of the organization, decrease the costs and expenses and finally devote their attentions to the participation in the required fields. Employing Strategy to Exit Financial Fund and IMIDRO made a great In 2015 there was a change in the Some of the new financing methods and Management Challenges and contribution to maintain the companies. strategies of international relations and are as follows: Achieving Stability Karbassian strengthened the attracting foreign investment in the mine Cooperation with committed and financial resources of the fund and and mining industry sector. expert firms in private sector so that a At the beginning of his activities in increased its initial investment ten times Four measures were undertaken percentage of stocks will be allocated to the 11th Government, Mehdi Karbassian to meet the needs of the people involved in this regard. First, the organization the development of partnership with the gave an order to develop two strategies. in mines and mining sector in Iran. This entered into a correspondence with sector. As a result, a significant percentage The first strategy was dealing with six- led to the increase of his popularity Eshaq Jahangiri, first vice president of of the construction costs of the projects month and one-year plans ahead, whilst among the miners. Hassan Rouhani’s government, aiming will be transferred to private investors. the second one was developed for three As a result of his direct negotiation, a to attract foreign investment. Secondly, Instead, the plans will be undertaken and to four-year plans. part of IMIDRO’s demands was received the expert panel was formed to develop Rodding, Petroleum Coke Pilot, Second the specialized private sector will also The main objective of the strategies from the government. Likewise, leading international strategy. Thirdly, more than Phase of Jetty Project-P.G.S.E.Z, Khur obtain benefits. The projects include 7 was exiting challenges and achieving mining companies using the subsidiary 20 interviews were conducted with some and Biabanak Potash, Zarand Tar Refinery, In the current year, Provincial Steel plans such as Neyriz stability and they were employed with mines of the organization managed to pay experts in the field. And finally, the study Sarcheshmeh Concentration Plan (Phase 28 projects will be Steel, Shadegan Steel, Mianeh Steel, considerable success. a part of their debt. of some successful countries in attracting 2), Songoon Concentration Plan (Phase Sepid Dasht Steel and others. Karbassian managed to prevent the The privatized companies paid foreign investment in the mine and 2), as well as 13 power transmission inaugurated and become Selling government bonds in order disbandment of National Iranian Steel back a part of their debt and the overdue mining industry sector was conducted. and road construction projects as the operational. Likewise, to implement a great number of projects Company (NISCO), a technical and interest of stocks was received. Hence, In these studies, developed countries infrastructure development plans in the Attracting foreign investors and engineering asset in the country. IMIDRO started rising again. such as Canada, Australia and China area of mineral regions in Iran. the result of projects their participation in the plans. One of the He convinced Iranian Privatization In its new plans, the company paid a were dealt with. Likewise, developing undertaken in 2013 was best procedures was forming Mehdi Abad Organization to preserve the company special attention to the private sector, par- countries with similar mining structure to Development of Financing Methods Consortium. The projects such as South and entrusted it with the study of ticularly NGOs, leading mining compa- Iran, such as Chile, Peru and Kazakhstan in IMIDRO revealed helping various Aluminum, Green Coke and Makran Steel comprehensive steel plans, as well as the nies and investors. Likewise, in the pro- were evaluated. provinces of Iran in will be set up through foreign investors implementation of provincial and other cess of decision making, the ideas of the The project is still under way and In new era of development in Arranging for foreign loans as steel projects. experts and elites were accepted warmly. due to the contribution of an international the mine and mining industry sector achieving sustainable well as attracting the participation of The same policy was adopted in consultant, the required studies will be associated with the beginning of the employment. Iranian investors living abroad are other respect with Iran Minerals Production Employing Strategy of Development carried out to prepare the country for Eleventh Government, IMIDRO faced financial methods under study. and Supply Company (IMPASCO) and in International Relations and further foreign investment. with financial challenges. A part of the Mining Activities Investment Insurance Attracting Foreign Investment

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22 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 23 IMIDRO Exclusive

Extensive and Unparalleled IMIDRO’s Exploration Operations 250,000 km² Exploration Operations in New Areas by IMIDRO IMIDRO’s new exploration plan Iran is rich is 68 types of minerals starts from prone Sangan Mine (in north and 57 billion tons of proven reserves. east) and extends to eastern and other Yet, this amount of deposit is the result areas of Iran. The result of such a huge of explorations carried out in the past project undertaken in 27 zones was decades. According to the Ministry of In- identification of 300 mining areas. The dustry, Mine and Trade, this figure repre- details of the plan is as follows: sents merely 7 percent of the total 1.648 Mkm² area of Iran. 1. Carrying out identification Likewise, the realization of the and prospecting operations in 21 country’s development objectives in the provinces covering 33 areas in more areas of steel, copper, aluminum, zinc, than 250,000 km² of the country’s gold, coal, etc. seeks new explorations. areas Since March 2014, complying with an order of the Chairman of IM- 2. Identifying 300 new promising IDRO, a new comprehensive plan was mining areas as follows: developed to implement exploration operations covering 250,000 km² of the a) 76 promising areas country’s area. The plan started under in Sangan, Razavi Khorasan a Memorandum of Understanding be- b) 28 promising areas on the tween the Ministry of Industry, Mine and borders of Sistan and Baluchestan Trade, IMIDRO and the Geological Sur- c) 12 promising areas vey of Iran (GSI) and IMIDRO was en- in Saravan, Sistan and Baluchestan trusted to implement the plan. Under the d) 16 promising areas Act of Congress, Iranian Mines and Min- on borderlines of South Khorasan ing Industries Development and Renova- e) 100 promising areas tion Organization (IMIDRO), is recog- in Abadeh, Jazmourian nized as the leading organization active in f) 60 promising areas in the central the field of mines and mining industries regions of Iran and is chiefly responsible for the develop- g) 10 promising areas ment of this sector. The developed plan in Ardebil province was in line with the emphasis made by the Supreme Leader to realize the objec- 3. Carrying out general exploration, tives defined in Resistance Economy. mining-exploration operations, IT, and 2. Providing a suitable platform to technologies such as implementation of detailed, and complementary phases The new exploration plan, an un- investment in mining sector. attract domestic and foreign investors by airborne geophysics to discover hidden The new exploration of 82 exploration projects across derlying program for the development of At least 8 world-class mines are providing exploration documents which reserves plan, an underlying the country on various minerals mines and downstream industries, was located in Iran which will contribute the comply with international standards 2. Conducting exploratory opera- such as iron, coal, polymetal, developed and implemented under the country in competing at the international 3. Making exploratory investment tions in a zone with an area of 250,000 program for the gold, copper, antimony, lead, government of Hassan Rouhani. It cov- level. in deprived regions with high mining km² on east and west borders of the development of mines zinc, chromite, titanium, nickel, ers 250,000 km² of the country’s areas In addition, owing to the develop- potentials to control the reserves, initi- country and also deprived areas in order molybdenum, barite, phosphate, and is 2.5 times more extensive than all ment and exploitation of the mentioned ate development, create job opportunities, to create employment in less-developed and downstream bauxite, brines (potash, magnesium, explorations made in the past 80 years. mines, Iran will be able to acquire the first and provide security in these areas regions industries, was lithium, etc.).Upon carrying There is no denying the fact that the plan stand in employment and national income 4. Creating multiproduct economy, 3. Carrying out systematic explora- out the complementary phase plays a crucial role in achieving balanced generation. The explored and exploited taking steps toward sustainable develop- tion operations based on the most recent developed and of Zarshouran gold mine, up to development in the country, promotes the deposits in Iran are about 57 BT which is ment, and turning mine into one of the im- scientific achievements in order to dis- implemented under 50% was added to the mine’s role of mining in national economy and not comparable to the size and potentials portant pillars of the country’s economy cover mining reserves the government of reserves. decreases reliance on oil revenues. of the country. 5. Discovering strategic metals and 4. Reviewing and re-evaluating of Given a variety of mining potentials In consistent with its developmen- supplying industries with their required available exploration–mining results and Hassan Rouhani. Cooperation with and valuable metallic and nonmetallic re- tal mission, IMIDRO has outlined and raw materials information that comply with internation- 100 Private Companies serves, Iran, with about 7% of the global undertaken some plans to make up for al standards and quantification in order phosphates etc. reserves, is ranked as one of the top 15 the historical exploratory backwardness Since 1393 (2014-2015), in line with to cut investment risk and increase par- In line with IMIDRO’s policies on countries in the world. of the country. The exploration plans are the roadmap, broad exploration activi- ticipation rate According to the divisions, the attracting private sector participation as The country is located at Alpine- set to achieve the following objectives: ties have been planned and implemented 5. Diversifying mining exploration whole exploration operations of IM- well as foreign investment, several meet- Himalayan metallogenic belt which gives 1. Discovering a variety of new in the country, based upon the following activities such as exploration and pro- IDRO are divided into “Exploration Ar- ings were held. Likewise, the first call for it the advantage of being a frontier in the mining reserves to develop the mining priorities: cessing of antimony, titanium, chromite, eas” and “Exploration Projects”. assigning an area to private sector was Middle East and Central Asia in terms of sector and increase its share in GDP 1. Employing modern exploration rare earth elements, low-grade iron ore, made in Nikouieh gold mine, Qazvin, in

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1394 (2015-2016). as the export of the finished products. Be- Over 100 private sector companies ing close to Asaluyeh Gas Region is an- participated in the consulting; contract- other considerable advantage of Lamerd ing and other affairs in the last three and Parsian Energy Intensive Special years and the whole exploration opera- Zones. tions were handed over after the tenders. Some of the local companies enjoyed the Kashan Special Zone cooperation of foreign partners. This area is under construction at the Investment in Exploration heart of Iran, Isfahan province. Aiming to create infrastructure and inviting domes- The annual budget allocated to the tic and foreign investors to join the chain exploration sector in IMIDRO is $40 Mn. of mines, IMIDRO has developed mining In 2015-2016, the organization and special zones. This area has a good ac- its major affiliated mining companies in- cess to railway network, multiple mines vested over $49 Mn in exploration proj- in central Iran, as well as domestic con- ects, indicating more than 2% growth sumption market. compared with that of preceding year. Total drilling operations carried Importance and Development out in this sector was 180,000M in 1394 of Applied Research (2015-2016), indicating 15% decrease compared with the preceding year. IMIDRO and its affiliated compa- The conducted exploration opera- nies have invested more than IRR 301 Bn tions include general explorations and on applied research in 2013-16. Mean- reconnaissance and prospecting which while, the companies having IMIDRO were mainly focused on iron ore, coal, as a shareholder such as National Ira- bauxite, rare earth elements, gold, and nian Copper Industries Co., Khuzestan copper. Steel Co., Iranian Aluminum Company (IRALCO), Mobarakeh Steel Co., and Exploration Projects in other companies have spent IRR 203 Bn 1395 (2016-2017) on applied research. In total, more than IRR 500 Bn was allocated to the develop- IMIDRO seeks to continue the same ment of applied research. trend of carrying out exploration opera- IMIDRO has financially supported tions and finalizing projects by attract- 39 research, 26 books, and 25 relevant ing private sector participation in 1395 seminars. (2016-2017). On the other hand, upon Likewise, aiming to help brilliant exploration operations some new promis- students, IMIDRO supported 394 thesis ing areas will be added to the mentioned and postgraduate dissertations associated areas. These projects, eventually, will re- with mines and mining industry. sult in exploration certificate and issuing The organization made an attempt to operation license. provide research and technology devel- opment hardware leading to the develop- Complementary Exploration Projects IMIDRO as a development organi- distinct advantage due to having loading aluminum hub. ment of research activities in the future. zation in Iran’s mines and mining indus- and unloading jetties for minerals and In consistent with 1. Completing exploration and try sector has established and managed petroleum products, 12MT capacity per Lamerd and Parsian Energy Major Research and defining development plan for new four special zones as follows: annum, and is located in the vicinity of Intensive Special Zones its developmental Technology Programs mines Persian Gulf Mining and Met- Persian Gulf high seas, Shahid Rajaei mission, IMIDRO 2. Zarshouran complementary al Industries Special Economic Zone Port, as well as a 1,200-megawatt power These two zones provide all required 1. Using an optimization model to exploration (P.G.S.E.Z) dates back to 20 years ago. plant. infrastructure facilities for investors and has outlined and evaluate and analyze development of 3. Developing overall bauxite This area is located near Bandar Abbas, The company’s operation was started are due to offering land to foreign inves- undertaken some plans steel industry considering the shortage of exploration with an approximate area of 5,000 hect- following the launching of the southern tors. The areas will witness the imple- water and energy in the country 4. Reconnaissance and prospecting ares, and is divided to southern, central, site, construction of administrative mentation of major steel, aluminum, to make up for the 2. Implementing an efficiency operations of rare earth elements northern and development sites. buildings, roads and facilities, Persian alumina, petrochemicals, cement, as well historical exploratory evaluation process in mines and mining 5. Developing Sangan exploration 2,000 hectares of the area is under Gulf five-star hotel, freshwater plants, as petrochemical, steel, and aluminum industries based on IMIDRO’s efficiency operation and investment companies flyovers and railway network. downstream industries. backwardness of model Development of Special Economic are implementing and exploiting the Currently, due to the establishment The zone will be completed via the the country. 3. Supporting postgraduate theses Zones in Area of Mine and projects, while 3,000 hectares are at the of major industries such as steel and alu- establishment of a jetty at the beach to fa- and dissertations Mining Industry phase of infrastructure. The area has a minum, the region is turned into steel and cilitate the entry of raw materials, as well 4. Studying genesis and factors

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In the last 3 years, 34,000 training Under the courses were held for more than 6 11th government, million participants by Mobarakeh Steel Co. (Isfahan), National Iranian the coverage of credit Copper Industries Co., Khuzestan Steel insurance of MAIIF has Co., Iranian Aluminum Co., Al-Mahdi Aluminum Co., Hormozal Aluminum increased by 10 times Co. and other companies affiliated to and this has improved IMIDRO.In total, about 6.8 person/hour training was undertaken in this sector. the support status of the mining sector. Iran Mineral Activities Insurance Investment Fund

research and technology development Iran “Mineral Activities Insurance Investment Fund” (MAIIF) is a Training supportive institution created to reduce investment risk in the mining sector. In 2013-16, IMIDRO and its affili- MAIIF is considered a subsidiary of the ated companies held more than 810,000 Iranian Mines and Mining Industries hours training courses for 68,000 par- Development & Renovation Organization ticipants. In total, 2,400 training courses (IMIDRO). were held, while the average efficiency Over the past three years, the fund of gold mineralization formation and of platinum group elements in chromite slags in laboratory scale aimed at design- and extraction of materials and strate- of the training courses was ranging from has been trying to promote its status in concentration in Sanandaj-Piranshahr deposits and peridotite host rocks located ing a semi-industrial unit (pilot plant) gic elements required in advanced and 78.5 percent (least) to 93 percent (most). the mineral field, especially with regard road using new technologies to provide at central Iran in order to introduce new 13. Testing feasibility and concep- emerging technologies Likewise, the organization held to Economy of Resistance through in- solutions for exploration operations indices tual design of underground coal gasifica- 19. Studies and applied research on 348,800 hours training courses for vestment increase and changing strategy. 5. Conducting laboratory studies 9. Complementary phase of study- tion in Iran- a pilot study improved productivity of mining indus- 13,950 participants in private sector Having the full support of IMIDRO on Tangestan samples taken from South ing the extraction of precious, rare, and 14. Studying the production of tries and units companies and small mines. In total, IRR Chief Mehdi Karbasian, MAIIF has suc- Khorasan strategic metals from electronic waste metallurgical grade silicon ingots 20. Using new technologies (Nano 5,940 M was allocated to the increase ceeded in making up for the mistake of 6. Designing and manufacturing 10. Complementary phase of 15. Developing technology of and biotechnology) in applied and devel- of productivity in the mines and mining the previous government and has been portable artificial respiration device to identifying mineral elements required for mobile processing units in small mines opment research in the field of mines and sector via training courses. pulled out of the list of companies for work in coal mines future technologies and evaluating their by gravity method mining industry In the mentioned period, 18 courses transfer to the private sector. 7. Studying feasibility, genesis, and extraction methods in the country 16. Studying environmental pollut- 21. Development of technical and were held for 1,200 people and 10,000 According to the measures taken by formation and concentration factors of 11. Complementary phase of study- ants and developing IMIDRO’s data base scientific knowledge required for the hours training were run by foreign the 11th government, the amount of regis- lithium as a strategic metal in outcrops ing the current situation and future of and environment software development of the country's mines and professors. tered capital in MAIIF has increased by of sediments (hectorite clays) in Semnan new technologies in mining explorations 17. Iron and titanium extraction mining industry In addition, some training courses 11 times and this has revived develop- by using new technologies 12. Vanadium recovery and extrac- from iron ore placer deposits 22. Providing the software and for foreign applicants will be offered in ment of the mining sector. This Fund, un- 8. Geochemistry and mineralogy tion (V2O5) from vanadium-bearing 18. Applied research on processing hardware infrastructure required for 2017. der the incumbent government, has taken

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als in 2014/15 with the acceleration of plans to pay attention to high value added projects. Finally in 2015/16 the average of each credit insurance bond reached 38 billion rials. This means a quadruple increase in the value of each insurance bond issued by MAIIF. On the other hand in the insurance sector for exploration risk the average figure of each insurance bond increased from 38 million rials in the decade between 2002/3 and 2012/13 to 270 million rials (in 2015/16). This figure indicates a seven fold increase in the insurance bonds issued in the start- ing years of the administration of Hassan Rouhani who came to power in 2013. In the post-sanctions era, with the cooperation of IMIDRO, negotiations have been held with reputable foreign companies for the supply and manufac- ture of mining machinery. In the talks, even private sector institutions such as the House of Mine were present. The plan is that foreign partners consider the fund a guarantor for the facilities they would provide. In addition, we expect to receive three to five year credits from for- eign companies. The reason for formula- a new look to its obligations and has put equal to 2,680 billion rials. In 2013/14, tion of this plan is that the mining sector its focus on projects with added value IMIDRO’s new the number of insurance and guarantee in the past 10-15 years has been in need and more and sustainable employment in bonds issued reached 71 with a value of of renovation and reconstruction of its the mining sector so that investment and exploration plan starts 180 billion rials. However, in 2014/15 equipment but no significant measure has mineral activities have been promoted from prone Sangan Mine the number reached 67 with a value of been taken in this regard. Of course, in considerably. 490 billion rials. In 2015/16, the number this field a new model is required for co- Under the 11th government, the (in north east) and of issued insurance and guarantee bonds operation, which should be designed and coverage of credit insurance of MAIIF extends to eastern and reached 57 with a value of 510 billion ri- implemented. It should be noted however has increased by 10 times and this has als. At the first glance it may seem that that big mining machinery manufacturing improved the support status of the min- other areas of Iran. the number of insurance bonds issued has companies usually have financiers to sup- ing sector. The fund started its official been reduced but the point is the shift in port them. activity over 14 years ago. Its mission stressed that out of the money received outlook and strategy that has been devel- has been defined as contributing to sus- by the National Development Fund, oped in MAIIF. In this way, from 2002/03 Iran Mineral Processing Research tainable development of the mining sec- 425 million dollars will be allocated for up to 2012/13 “each year” at an “average” Center: Self-Reliance, Indigenization tor and its main target is risk reduction or increasing the capital of the fund which the value of the insurance and guarantee and Processing Development coverage as well as helping development was fortunately realized by the middle bonds issued reached 260 billion rials. of this sector. In the meantime, the risk of last fall and thus the capital increased This figure dropped to 180 billion rials Iran Mineral Processing Research coverage in exploration investment and from 100 billion rials to 1,100 billion in 2013/14 while in 2015/16 it amounted Center (IMPRC) as one of the first issuance of guarantee bonds for receiving rials. to 510 billion rials. In other words, the research centers in the world in the field facilities from the banks (agent) are two The remarkable point in increasing number of insurance bonds decreased but of mineralogy, chemistry, processing and the past three years. ganizing training courses, expanding the major activities of the fund. the MAIIF capital is that it resulted in a their value increased in accordance with indigenization of equipment and parts of The center, in recent years, has mineral processing studies market in dif- At the time of its registration, significant rise in the risk coverage coef- the new policies of IMIDRO and MAIIF. mineral processing, has taken satisfactory achieved an average 42% growth in ferent fields and equipping laboratories MAIIF had a small amount of capital at ficient of the fund and the ceiling of the This is due to the new priorities of the in- measures and been able to make different sectors (mineralogy, chemistry, with new and advanced devices. its disposal: that is 100 billion rials. But total insurance bonds ready to be issued. vestment fund that has focused on issuing major achievements in the said fields. processing, environment and construction In the center’s new round of activi- in the 11th government and thanks to the Meanwhile, this increase in the capital insurance bonds for projects with high Indigenization of technical knowhow of workshop) as compared to 2013/14. ties under the incumbent government, new managing director of IMIDRO, the has been registered in the Companies value added. rare earth elements and production of the The IMPRC development targets in different achievements have been made issue of increasing the capital with an Registration Office. For the years 2002/03 to 2012/13, first antimony ingots and construction the field of processing equipment manu- such as: aim of expanding activities and offering Since 2002/03 (the beginning of the the average value of each credit insurance of its production line, production of facture and establishing contacts with Formulation of the goals and two- further services to the mining sector, activity of the fund) up to 2012/13 the bond was equal to 3.9 billion rials, which four misch metal ingots from rare earth reputable and leading research centers year operational plans including was followed up and finally realized in total number of guarantee and insurance reached 8.7 billion rilals in 2013/14. elements and 42% increase in the revenue are in the area of processing, focusing short-term goals the 1394 (2015/16) budget bill. The bill bonds issued reached 1417 with a value This figure increased to 20 billion ri- of the center, are among achievements of on processing of rare earth elements, or- Prioritization of the projects

30 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 31 IMIDRO Exclusive

from the placer deposits Feasibility studies of processing rare earth elements Studies in surface chemistry with Nano micro flotation on fine- grained Esfordi phosphate Conducting processing studies on the tailings of Sangan iron ore particles through dry method

Among other measures taken in the center, reference should be made to: Study of environmental pollutants and preparation of IMIDRO data and software bank on environment Conducting two auditing by Iran National Accreditation Center and Alborz Province Standard Depart- quality, accurate, and affordable ment and receiving ISO/IEC 17025 Localization of services to the customers, at given standard of quality management time and by reliance on standards from INAC and certificate of trusted technical knowhow in and laboratory methods peer from the department the field of rare earth Communication with foreign centers is one of the necessities for the develop- Among development programs of elements is among other ment of a research center. To this end, the center are: achievements of this the IMPRC with the cooperation of the Development of the processing training, research and technology bureau Allocation of the required inauguration ceremony was attended by such as development of mobile sector in relevant specialized fields center, which is ready to of IMIDRO, has taken measures for in- resources Dr. Ali Akbar Salehi, head of Iran Atomic processing unit technology for Operation and implementation transfer the knowledge to specting reputable mining companies in Introduction of reform in orga- Energy Organization, Dr. Sorena Sattari, small mines through the gravity of the mobile pilot through the world and signing memorandums of nizational structure and human Vice-President for Science and Technol- method manufacture of mobile equipment other countries. understanding for cooperation with inter- resource management system in the ogy and Dr. Mehdi Karbasian, Chairman Manufacture of heavy cyclonic for small units national scientific and research centers, center of IMIDRO on February 28, 2016. media separation device for private Development of cooperation with Yet among other development plans including Min Tech MSA Group, Fraser Projects under implementation Extraction of ingots of rare earth ele- sector advanced countries in the field of of IMPRC, the following can be Alexander, and Maelgwyn Mineral Ser- and forthcoming projects ments for the first time in the country and Installation, launching and mineral processing cited: vice for the development of cooperation in Definition and establishment of gaining access to the technology for pro- operation of the project for Preparation of grounds for Motivating, promoting the level the field of processing mineral substances. the industrial marketing unit in the duction of rare earth elements metals and production of antimony ingot of and development of processing of skills and efficiency of the staff Also, in recent visits of the mining minis- organizational structure strategic substances such as misch metal, Sefidabeh, Nehbandan knowledge and their application in and employing capable and quali- ter of Conakry Guinea and the head of the Preparation and regulation of pure cerium ingots (Ce), pure yttrium Installation and operation of mineral industries fied people in laboratories through Vincent Co. China to the center, emphasis cooperation agreements with ingot (Y), concentrates of promethium relevant equipment and devices Boosting the marketing sector implementation of projects for im- was put on development of technical co- international companies such and lutetium Pm + Lu and concentrates for the attraction of foreign provement and use of systems and operation in the field of mines. as Min Tech of South Africa of strategic metals took place in this area. Iran Mineral Processing Research investors in the mining sector and patterns related to organizational In addition, the IMPRC on October and Mineral Technology of Localization of technical know- Center in the laboratory section, has also concluding cooperation agreements reinforcement 23-24, held the first international sympo- Australia with an aim of accessing how in the field of rare earth elements is taken measures such as: with related foreign companies Development of the scope of sium of those active in the processing of international projects and benefiting among other achievements of this center, Improving customer satisfaction for the implementation of joint activities associated with related mining materials through inviting pro- from the expertise of the mentioned which is ready to transfer the knowledge and providing diagnosis program research projects; gaining access tests through studies and purchase cessing professors and experts from dif- companies in the implementation of to other countries. Also for the transfer Obtaining credentials for standard to international projects; taking of equipment ferent countries. The symposium, held projects in the processing sector of technical knowledge in some areas, lab quality management system ac- advantage of the expertise of Proper relationship with discussions in an effort to synergize in- Correspondence with provincial including iron ore, copper, etc., training cording to the ISO/IEC 17025:2005 the mentioned companies in the competent suppliers and contractors ternational interactions in different fields industry, mine and trade of foreign experts is on the agenda of the Chemistry and mineralogy implementation of projects in for the center’s supply of demands such as new methods and equipment for departments in order to prepare the IMPRC and so far, two training courses experiments and processing of the processing sector; increasing Detailed control of and full mineral processing, processing of rare ground for absorption of provincial have been held for experts of ECO (Eco- IMIDRO exploratory samples customer satisfaction through monitoring over the implementation earth elements, processing of titan mag- projects by the center nomic Cooperation Organization) mem- Provision, section preparation and facilitating contacts with the center of all the projects for increasing netic, gold and precious metals, recycling ber states. analysis of drilling and geological Preparing the workflow process efficiency and improvement of its materials from waste and tailings, the Among other achievements, mention In the construction workshop and lo- samples of the National Iranian with customers in all fields results role of analysis in mineral processing, can be made of inauguration of the proj- calization sector in recent years the center Copper Company ranging from sending of samples, Continuous improvement in the environmental studies, and economics in ect for processing studies and feasibility has made the following achievements: accountability, time and cost of the collection of activities and perfor- mine and mineral industries. Beside the studies of rare earth elements and attain- Conclusion and implementation It has also taken measures in the work, how to deal, and accuracy of mances through the quality manage- event, it held a training course, for the ing the knowledge of producing rare earth of important countrywide mineral, processing section such as: the results ment system and implementation of third consecutive year, for experts from elements and strategic substances. The chemical and systematic projects, Extraction of iron and titanium laboratory standards and offering ECO member states.

32 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 33 IMIDRO Exclusive

Presence in International IMIDRO Signs Deals with Conferences, Seminars and Meeting with Representatives of Foreign Companies Foreign Companies

uring the term in office of the incumbent government, from D1392 (2013) up to the middle of 1395 (2016), the IMIDRO team, by using the created international capacities, took measures to increase the level of its exter- nal communications. During this period, experts and management teams, headed by IMIDRO chief Mehdi Karbasian, at- tended international conferences, exhibi- tions and seminars in order to invite large companies to maintain presence in Iran. Some of those destinations were the In- vesting in African Mining Indaba, Iran Europe Forum in Vienna, IMARC con- ference and exhibition in Australia and the Metal Bulletin Conference in Dubai. Karbasian convinced the Metal Bul- letin that the 2016 Middle East programs should be conducted in Iran. The first ollowing the agreement reached for a graphite electrode project. Metal Base Conference was held in Teh- between Iran and world powers French Company Fives The Sinosteel and NFC companies ran. Meanwhile, the first iron and steel Flast year Iranian Mines and Mining has signed a deal for of China have signed agreements with conference of Metal Bulletin was held in Industries Development and Renovation IMIDRO. The Sinosteel Company will Kish Island last year and its second term Organization (IMIDRO) has managed the establishment of an enter into aluminum smelting plants was held in Isfahan this year. to sign memorandums of understanding anode factory needed and NFC in processing of rare earth Over the past three and a half years, (MoUs) with major companies of elements as well as safety and mineral domestic companies and NGOs convened nine world countries, namely Italy, by Iranian aluminum technologies. 30 mining related exhibitions and confer- France, Austria, China, South Korea, industry and AXENS China’s Citic Construction Compa- ences with the financial and moral sup- South Africa, India, Turkmenistan and ny has also signed three memoranda of port of IMIDRO. Of course, the main Afghanistan. Company for the understanding in the area of aluminum, policies are directed towards improving Italy’s Danieli has signed a feasibility study of development of Parsian Port, and water the order and solidity of these events and memorandum of understanding for the desalination as well as for comprehen- efforts are being made to improve the manufacture of seamless pipes, hot and petroleum coke project. sive cooperation. quality by merging some of these forums cold rolled steel as well as construction The National Aluminum Company and exhibitions. of an iron ore concentrate factory. Danieli The FATA Company of Italy has also Limited (NALCO) of India has signed During this period, many foreign delegations and companies from over 30 will also enter into Iran’s aluminum entered into aluminum industry and the a MoU with IMIDRO for the establish- countries held meetings with IMIDRO industry and MoUs have been signed for power plants required by the industry. It ment of a joint aluminum factory in the officials including Karbasian. The com- the development of aluminum billet, foil, has signed agreements with IMIDRO. southern coasts of Iran with an aim to panies were from countries such as Aus- wire and cable. Under the memorandum export its products. The French Company Fives has tralia, Canada, Germany, Italy, Russia, Ja- of understanding agreement has been signed a deal for the establishment of The MINTEK Company of South pan, China, Austria, South Korea, France, reached regarding holding of specialized an anode factory needed by Iranian Africa has signed a MoU with Iran and Spain. Some of these companies are training and establishment of a joint steel aluminum industry and AXENS Mineral Processing Research Center, in the stage of studying or completion and company with Iran. Company for the feasibility study of affiliated to IMIDRO, for the purpose development of projects in the mine and The Italian company SMS INNSE petroleum coke project. of training and implementation of joint mining industries of IMIDRO and some will also enter into Iran’s steel industry, The SCS Company of Austria has projects. other big companies are active in mining particularly in the downstream industries. signed a memorandum of understanding industries of Iran.

34 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 35 IMIDRO Exclusive Sponge Petroleum Coke Tehran to Host IMIS 2016

oday the Aluminum production in capacities in the absence of this material cations and in the same year investment ran has been faced with appropriate only source of the government revenue, tic and foreign companies and investors Iran is around 400 thousand tons supplement within the country and sur- committee resolution with an emphasis economic opportunities in post- any fluctuations in the oil market would active in mining sector. Up to the prepara- Tper year which requires around vival and development in these sectors on sustainable supply of raw materials Isanctions era. The situation of greatly affect the country’s plan and bud- tion of this report, 38 foreign companies 200 thousand tons of sponge petroleum will be associated with significant risks. and in parallel the ground allocation and international participation and investment get. Should the government decide to in- had registered to participate in this con- coke. According to “Iran 1404 Vision” On the other hand with the production of purchasing and negotiations with tech- is improving every day. Iran hopes to crease its production and revenue compo- ference, which shows an increase of 81 with 1/5 million tons of Aluminum pro- this substance, we will prevent nearly 100 nologist was announced. make a full comeback to the global nents in the GDP, one of the best options percent as compared to last year. Mean- duction, we will need nearly 515 thou- million dollars going out of the country In this regard all probable refinery markets within a year. would be the mines and mining industries while, 53 persons from outside Iran have sand tons of calcined petroleum coke. each year. and non-refinery feedstocks for coking There is a big difference between sector. In similar economies, it has been also registered to attend the conference. Raw steel production in the country is With regard to these issues, dedi- unit were studied and the most suitable post-sanctions and pre-sanctions Iran. determined that one percent direct growth Iran has a young, educated and expe- around 15 million tons yearly which cation and determination for petroleum feed was determined. Then based on The Supreme Leader has given top pri- in mining GDP would cause three percent rienced workforce, a huge market for do- needs around 45 thousand tons of needle coke production was formed in IMIDRO this feed (vacuum bottom of unit 200 of ority to the ‘Economy of Resistance’ in growth in total GDP. mestic and regional consumption, access petroleum coke and the 1404 forecasts and in 2005 the board approved a petro- Abadan refinery mixed with CSO from the country’s mission and vision. On this Iran is blessed with abundant min- to international waterways, low cost labor, shows that 55 million tons of steel will be leum coke production plant establish- Arak refinery) a bench unit with a capac- basis, Iran must strengthen the pillars of eral and energy recourses and is fully a developed infrastructure of roads, rail- produced annually which will need 135 ment in Iran. Later that year, it was sent ity of 20 Kg of feed per day was estab- its economy. In order to attain this goal, ready to attract foreign investment. The ways, ports, power supply and telecom- thousand tons of needle coke. to MPO (Management and Planning Or- lished in 2014 and the coke was produced. there are numerous infrastructures and first summit on Iran’s Mines and Mining munication network, together with asset of Regarding the importance of in- ganization) in the form of development At the same time the updating of techni- prerequisites such as increasing finan- Industries (IMIS 2015) was a successful investor friendly laws and regulations; all creasing the production of Aluminum and projects of the fourth development plan cal and economic studies were started. cial transparency, reforming the taxation experience. The event that was held in of which make Iran a particularly attrac- steel in development programs of Iran, of the country. Then with the admirable collaboration system, revising investment rules and Tehran gathered together more than 1670 tive country for international investors. regardless of global market, it’s obvious After a long pause at the beginning of the advisor, Research Institute of Pe- regulations, etc. which are being done delegates from 590 companies from 21 Iran possesses 68 different types that the development of a part of material of the new wisdom and hope government, troleum Industry (RIPI), the negotiations quickly and a major part of it has been countries. This encouraged IMIDRO (Ira- of minerals. Its proven iron ore reserves supply chain in the country’s primary in- Mehdi Karbassian, the chairman of the and tracking of license allocation of feed accomplished. nian Mines and Mining Industries Devel- stand at 2.7 billion tons (0.8% of total dustries heavily dependent on petroleum board of management of IMIDRO com- from oil ministry successfully conducted In the meantime, the Iranian econo- opment and Renovation Organization) to global reserves) and proven copper ore re- coke and Aluminum and steel produc- municated a resolution based on updating in May 2014. my should come out of reliance on a sin- hold IMIS 2016 on December 10-11. The serves are 2.6 billion tons, which account tion industries will be vulnerable at high the studies for calling investment notifi- Continued on Page 46 gle product. If oil continues to remain the event will be attended by credible domes- for 4% of global reserves. Iran also pos-

36 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 37 IMIDRO Exclusive sesses 11 million tons of zinc (4% of glob- hat strikes any economic al reserves). The total proven reserves are observer of Iran is that the estimated at 55 billion tons which would country not only possesses reach more than 70 billion tons with new W extensive underground resources – be it discoveries of 300,000 sq. km. The mines hydrocarbon, mineral or metal – but that and mining industry have a 25% market it also ranks quite high globally in the share in Tehran Stock Exchange with a production of many. Iran with about one value of approximately $30 billion. percent of the world’s population holds IMIDRO as Iran’s largest holding in more than seven percent of the world’s Mines and Mining Industries has always mineral reserves. The facts and statistics played an important and crucial role in are set out in the table below (1) and the Iran’s economy. And today in the year of information in this article follows the Economy of Resistance through ‘action’ same sources. and ‘implementation’ in compliance with Such extractable underground re- its mission and responsibility to develop sources play a very prominent role in and renovate, IMIDRO has created a leap both Iran’s national economy and global in mines and mining industries sector by trade. Following possible international taking advantage of national and interna- tional potentials so that it could attain its agreements and lifting of sanctions, and real status, namely to pioneer non-oil de- given the expected higher economic velopment and national production. growth rate, increasing sustainable in- IMIS 2016 as the most credible vestments and activity in the minerals IMIDRO-backed mining conference wel- and metals mining sector is crucial for comes all national and international inves- Iran’s development path. tors, mining companies, mining machin- ery companies, consulting companies, Iran’s Underground technological and engineering companies, Resources contractors, banks, insurance companies and financial institutions as well as all Iran’s hydrocarbons have the sig- mining industries activists to take part in nificant place in the economy, as is well this important event every year to discover known. In 2011, Iran was considered to the latest investment and cooperation op- be the world’s 4th ranked producer of portunities in mines and mining industries crude oil and condensate (natural gas as well as providing the latest technolo- liquids), accounting for about 5% of gies, management skills and knowhow to global output and with 2% of the world’s develop mining industry in Iran. crude oil refining capacity – along with 9% of proven global oil reserves; it was Conference Topics IMIDRO’s Exploration Packages as: the world’s largest zinc reserve of employees are in mining for decora- for International Mining Companies, holder; the 9th largest copper reserve; Iran is also among the 15 tive stones and gravel (28,000 persons), Investors & Financiers 12th iron reserves; 5th largest producer iron ore (13,000), lime stone (7,200) Excellence in Mining: Value Realiza- of strontium; has 1.6% of the world’s top major mineral and and copper ore (5,300), respectively: tion through Innovation, Technology, Iran’s Mining th total output of cement and 10 in terms metals rich countries, of which only half the employees are Productivity & Cost Management of cement export; 11th largest reserves considered as “skilled”. There were also Iran Mines & Mining Industries Role with about 37 billion of lead; has 1.2% of world’s total output about 900 active mining cooperatives, in Iran’s Economy of sodium chloride; 3.7% of barite; tonnes of proven reserves, with about 46,000 members and 9,000 Iran’s Government Incentives to world’s 2nd largest producer of gypsum workers. Develop Mining Activities for Economic Sector Statistics and more than 57 billion Growth after China and an estimated 9% of The total value of production in the the world’s output; and, of course, Iran tonnes of potential metals and minerals mining sector (in- Applying Compatible Finance th Strategies for Iran’s Mines & Mining also the world’s 4 ranked producer billion in 2014. Iran also has extensive is the world’s oldest, finest and largest reserves – in total worth cluding coal) was about $5 billion (the of natural gas, holding 16% of proven mineral and metal based production producer of turquoise stone. Astounding exchange rate of the time - $/1200Rials Industries Development Projects $800 billion in 2014. Iran’s Mines & Mining Industries: natural gas reserves. Iran also produced and processing industry: more than 70 indeed. – has been used throughout). The total Globalization and Challenges over 2 million tonnes of coal and over 1 metals and mineral commodities are input and material costs of this produc- Introducing New Technologies in the million tonnes of coke in 2011. ored, refined or manufactured; more Industry Structure an estimated 220 million tonnes per an- tion were about $1.3 billion (of which Mining Industry But Iran is also among the 15 top than 2% of the world’s output of barite, num. The majority of these mines were wages/salaries were about $700 mil- IMIDRO’s Mines & Mining Projects major mineral and metals rich countries, feldspar, nitrogen, and sulfur; and more The industry structure is slightly private while 218 were Government lion). The expected value added (i.e. to Invest: Approaches, Laws & with about 37 billion tonnes of proven than 1% of the world’s output of cement, complicated. By 2011, 5,500 potential owned: with nearly 100,000 persons di- sector GDP) was about $3.7 billion: or Regulations reserves, and more than 57 billion tonnes industrial sand (or glass), iron ore, and mines existed in Iran, of which over rectly employed (and a further estimated probably less than 1% of national GDP. B2B & B2G Meetings of potential reserves – in total worth $800 molybdenum. Iran also globally ranks 3,000 were operating, and extracting 400,000 indirectly). The largest number Most of the value added was in mining

38 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 39 IMIDRO Exclusive

iron ore – mainly from the Chadormalu mining operations vis-à-vis the larger and Gol Gohar Iron Ore mines (which Government-affiliated companies. together account for 80% of iron ore Although most of the country’s production in Iran). Chadormalu Min- mines are privately owned, the Govern- ing and Industrial Company produced ment - primarily through the Iranian 10 million tonnes of iron ore and is Mining Industries Development and the largest iron ore producer listed on Renovation Organization (IMIDRO) the Tehran Stock Exchange; while Gol - controls many of the larger capacity Gohar Iron Ore Company produced 7 mining and mineral-processing com- million tonnes of iron ore, and its pel- panies, especially those that produce let plant near the southern city of Sirjan aluminum, ammonia, coal, copper, iron is the biggest of its kind in the Middle and steel, and sulfur. The Government East (producing 5 million tonnes of iron is, however, increasingly anticipating ore per year, enough for production of divesting some of its interest in mineral- 2.5 million tonnes of steel). related operations. IMIDRO has, since Iran became self-sufficient in steel 2002, transferred Government owned production in 2009, producing 7.5 mil- assets to the value of $30 billion to the lion tonnes of direct reduced iron (DRI), private and cooperatives sectors – using or 13% of global DRI production and the revenue to mainly pay off general 41% of total Middle East DRI produc- Government debt. It is also now over- tion. Iran is the world’s 16th steel pro- tion of 6%. The largest producers are: seeing the development of eight iron ducer. The major raw steel producers Iran Zinc Mines Development Group; Iran is the 8th cement and steel plants in eight provinces of of iron ore, copper and building mate- in Iran are: Mobarakeh Steel Mill (es- Bama Mining and Industrial Co.; Bafgh producer in world and Iran. Another entity, the National Ira- rial and stones. Many factors may have timated 47% market share in 2010); Mines Co; and Calsimin Co. nian Mining Company is estimated to be Iran’s mineral reserves nd contributed to the small contribution of are estimated to be Khouzestan Steel (23%); and, Isfahan 2 in the Middle East - the world’s 23rd largest mining holding mining to GDP, including: lack of suit- Foundry (20%). In 2010, Iran estab- Cement. Iran is the 8th cement producing over 50 million company - with 0.6% of the world’s to- able infrastructure, legal barriers, ex- valued at $800 billion lished the largest galvanized sheet pro- producer in world and 2nd in the Middle tal mining production. ploration difficulties, and government (2014), while investment duction plant for automobiles in the East - producing over 50 million tonnes tonnes of cement The Government is seeking foreign control over resources. However, once Middle East: the plant, owned by Iran of cement per year and exporting to per year and exporting to investment for the development of the mining-related industry production (e.g. in underground resources Khodro and Saipa , has a capacity of 40 countries. Iran constitutes 1.8% mining sector. Numerous production- including final metals and cement pro- extraction has been 400,000 tonnes per annum. of the world’s cement production - 40 countries. capacity expansion projects and new duction) is also considered, the sector and also 1.6% of the world’s cement mineral commodity development contribution rises to about 5% of na- estimated by some to be Aluminium. Iran’s aluminium consumption. It also has significant all mineral and metal mining, smelting, projects in Iran’s mineral sector are tional GDP. at 30% of all investments production is expected, according to engineering capacity: IMIDRO reported and refining industries. underway and planned – some of it Iran’s mineral reserves are estimat- IMIDRO, to exceed 1.5 million tonnes that 9 countries (including Syria, Various international sanctions through IMIDRO. In the steel and ed to be valued at $800 billion (2014), in recent years. by 2020. Planned projects include Venezuela, Bolivia, Algeria, Lebanon, imposed on Iran have, however, affected copper sectors alone, it is seeking to while investment in underground re- Alumina Mine’s 100,000 tonnes per Ecuador, Iraq, Belarus) will have Iranian the mineral sector, which historically raise around US$1 billion in foreign sources extraction has been estimated by Yazd province; they are also the larg- annum project in North Khorasan, manufactured cement plants. With has required large investments to financing. some to be at 30% of all investments in est investment provinces respectively. the 276,000 tonnes per annum South nearly 60 active production units in develop mineral deposits (especially There has been some foreign recent years. About $600 million of in- Some further production highlights are Aluminium project and the 375,000 Iran, half are listed on the Tehran Stock metal ores and crude petroleum) and investment in the mineral sector over the vestment was undertaken in the mining indicated below. tonnes per annum Khuzestan Aluminium Exchange: the main ones being Fars to process the minerals. Initially, the past few years; however, international sector in that year – most of it, again, in project. The largest plants for aluminium and Khuzestan Group (market share of petroleum sector was the focus of funding for capital-intensive mineral- iron ore and building material. It is also Copper. The Sarcheshmeh mine in production in Iran are Iralco, Almahdi, 24%), Abyek (8%), Tehran (7%), and sanctions but prohibitions on other types metals projects has been limited owing estimated that between 2000 to 2010 Kerman Province contains the world’s and Hormozal. Sepahan (6%). of transactions followed, including to sanctions. The Government’s 20-year about $2 billion was invested in the min- second largest single reserve of copper targeting of international investments Perspective Plan for the mining sector ing sector. The Tehran Stock Market, as ore. It also has gold. In 2010, Iran Lead and Zinc. Iran has over 220 Governance and Financing and the provision of goods and services intends to attract $20 billion, mostly a further indicator, had nearly half of its ranked 10th in copper ore production and million tonnes of proven zinc and lead that could enhance Iran’s ability to in foreign investment, and will partly capitalization in mineral industries in 12th in copper cathodes production; and ore reserves: about 5% of the world’s The Mining Code of 1998, and its import, including finance, brokering, require use of “buy-back” methods for 2009: and given the sectors high profit exported over $1billion worth of copper reserves. In 2009, it ranked 15th in the amendments, regulate mining in Iran; the insurance, and shipping services, as well attracting foreign capital, services and margins (of 60% or so). cathodes. The National Iranian Copper world in terms of zinc and lead produc- 5th Five Year Development Plan (2011- as restrictions on Iran’s access to bonds technical expertise, while intending to The above is also well indicative of Industries Company (NICICO) is one tion; and exported 77,000 tonnes of zinc 2015) has proposed that production and insurance markets, and transfers of expand exports. The types of projects the link between iron ore and building of the largest companies listed on the and lead concentrate and ingot. The two capacities of mineral commodities be funds to and from Iran. The Government eligible for such buy-back agreements materials with urban development and Tehran Stock Exchange. important mines in Iran are: Mahdi- increased significantly; while Articles program to phase out subsidies to the and foreign loan facilities include: infrastructural building: the two latter Abad, with 75 million tonnes of ore with 44 and 45 of the Constitution support economy, together with international projects that complete aluminium metal being probably Iran’s main economic Iron and Steel. Iran produced a zinc concentration of 6% and a lead resources extraction and development sanctions, made the availability of production lines, projects that mobilise growth engines. As further indicators, about 33 million tonnes of iron ore concentration of 2.7%; Angouran, with and the prompting private sector affordable energy, of funding, and coal, iron ore, steel, copper and pigment Kerman province is the largest produc- (fines, lumps and concentrate) in 2011 16 million tonnes of ore with a zinc con- development in this field. The Ministry of access to export markets also more metals production, ferro alloys projects er of mining value added, followed by – ranking as the 9th largest producer of centration of 26% and a lead concentra- Industries, Mines and Trade administers difficult for small and medium sized and gold production.

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MIDRO is defined as the leading and enter a total of 73 projects into the pro- most effective development organi- duction circuit of the country by the end Ization in the field of mine and mining of 1398 (March 2020). Some of the other industry. The organization has remark- projects include Chabahar Aluminium, ably increased the production capacity of IMIDRO alumina production from nepheline sy- the country in the past 15 years, ceding a enite, production of magnesium oxide great number of its subsidiaries’ share in from Qom Salt Lake, Parsian dock and a privatization plan. Parvadeh 4 coal. Some of these companies include Will Commission This year, IMIDRO will open and Mobarakeh Steel Co., Khuzestan Steel put into operation 28 projects with a total Co., Iran Aluminum Co., Hormozal capital of $1,420 million. Next year, with Aluminum Co., Al-Mahdi Aluminum 28 Projects Worth an investment of $1000 million, 12 other Co., National Iranian Copper Industries plans will be added to the production Co., and several companies producing capacity of the country. Furthermore, 17 lead, zinc, cement and other products. projects with an investment of $4,390 IMIDRO has launched more than 110 $1,420 Million million will be opened in 1397 (2018/19) projects valued at over $ 13 billion in the and in the final year of this report, 8 last 15 years. projects with an investment of $3,300 In spite of facing financial problems, million will finally become operational. the organization managed to carry out its In other words, since 1392 (2013/14) plans in the new era of its activities. up to the end of 1398 (March 2020), There has been some modification in seventy-three projects with a capital of the organizations’ financial plan in 2014 $11 billion will become operational. and by defining new financing methods, Through these plans, about 8,500 people top priority was given to domestic and will be employed directly and 12,000 foreign investment. others indirectly. Out of the total 73 Iranian Mines and Mining Indus- plans, activities for 20 plans started tries Development and Renovation Orga- before 1392 (2013/14) and for 53 others nization, also known as IMIDRO, is the the year after. This has helped preserve largest and most prestigious organization IMIDRO’s position as a development in developing mining and mineral indus- organization in the field of mining and tries in Iran. The organization, over the mineral industry at international level. past 15 years, has brought growth and In the event of presence of foreign development to Iran’s manufacturing investors, IMIDRO will bring forward capacity in an acceptable way. IMIDRO and launch new plans. Iran has rich has ceded a large portion of the shares of cement in Venezuela were inaugurated. production of rare earth elements and underground and energy reserves and our its subsidiaries to the private sector in the At that time the semi-finished and fully strategic metals. access to the high seas and macro regional privatization program of the Iranian gov- abandoned projects were activated and In the current year too, 28 projects markets, provides us with the opportunity ernment. Some of these companies in- became operational by adopting different will be inaugurated and put into opera- to define ample economic plans. Iran will clude Mobarakeh Steel, Khuzestan Steel, financing methods. In 1393 (2014/15), tion. This year parts of the results of the be an original option for foreign investors Iran Aluminum, Almahdi and Hormozal nine projects including Sangan iron ore activities of 1392 (2013/14) became and this is a point which they know better Aluminum, National Iranian Copper In- concentrate (Khorasan steel unit), San- visible which rendered help to several than we do. With the adopted plans, the dustries Company, numerous cement, gan pelletizing plant (national develop- provinces in the country in the field of special energy consuming industries in lead and zinc producing companies, etc. ment unit), Savad Kouh coal washing sustainable employment. Some of these the southern coastline of the country, In the past 15 years IMIDRO has com- plant and Jalalabad iron ore concentra- projects include Sefidabeh Antimony in in Lamerd and Parsian regions near missioned and put into operation over tion entered executive operations. Sistan and Baluchestan, Chahar Mahal Assalouyeh, have started ceding land to 100 projects with a capital of more than Activities of IMIDRO in 1394 and Bakhtiari sponge iron unit, Shadegan applicants for investment. This area is a $13 billion. (2015/16) led to the opening of six proj- sponge iron unit in Khuzestan Province, large hub for production of steel, cement, IMIDRO has operated successfully ects such as Zarand tar, the second phase Neyriz sponge iron unit in Fars Province, aluminum and petrochemical industries in the new period of its activities de- of the jetty of the Persian Gulf Special first phase of Jajarm Aluminum in North in the region and has a very clear vision spite all the financial problems. In 1392 Zone and the start of the contract for ex- Khorasan and Titanium pilot project in and we recommend all foreign investors (2013/14), IMIDRO changed its financial traction and sale of Gol Gohar 5. In the Kahnouj, Kerman Province. to examine the situation. program and by specifying new financ- same year with new activities and in- IMIDRO in continuation of its ac- For the development of international ing methods put attraction of domestic vestment, 15 projects started executive tivities will open and put into operation cooperation in the mining and mineral and foreign investment top on its agenda. operations. Some of the projects include 12 projects by the end of the current cal- industries sector in Iran keep in touch During 1392 and 1393 (2014/15), the first Makran Steel, South Aluminum, Sangan endar year (March 2017) and will com- with IMIDRO. phase of Zarshuran gold and Cerro Azul Concentrate (Mobarakeh Steel unit) and mission five projects and finally will

42 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 43 IMIDRO Exclusive IMIDRO Changing Product Development Strategy

ranian Mines and Mining Industries Development and Renovation IOrganization (IMIDRO) is proud of taking another step towards self- sufficiency, development of the country and realization of the ‘economy of resistance’. IMIDRO, as the development or- ganization of the mines sector and min- ing industries, began its activity in 1381(2002/03). The organization was cre- ated in an effort to develop and renovate mines and mining industries of Iran and then transfer it to the private sector in line with empowering Iran’s mining sector. During this period, IMIDRO managed to create maturity in steel, copper, aluminum and cement industries and is now support- ing the private sector for the required de- velopment of the said industries. In the new product development efforts, succeeded in gaining access to the strategy of IMIDRO greater importance IMIDRO, with regard technical knowhow of extraction of rare has been attached to strategic and hi-tech to its development and earth elements and managed to produce products. Projects such as production the first ingot with a purity of 99% from of graphite electrodes for completion of monitoring position and the minerals extracted from the mines in parts of the steel production chain as well considering the past central Iran. POSCO Inks €1 bn as production of green coke for comple- negligence in the area Other substances we have so far tion of parts of the requirements of alumi- managed to produce at Iran Mineral Pro- num industry are noteworthy. of rare earth elements, cessing Research Center include praseo- In this regard, IMIDRO has attached embarked on serious dymium oxide with a purity of 99.9% , Agreement with IMIDRO special importance to rare earth elements neodymium oxide with a purity of 99.9%, and strategic metals. The pilot project exploration, research titan ferrous oxide with a combination of for production of antimony metal was and processing activities 55% iron and 45% titanium, yttrium ox- ran and South Korea are set to mark Development and Renovation Organiza- (PERED). successfully completed and its semi- ide with a purity of 99.5%, cerium oxide a new chapter in bilateral relations. tion (IMIDRO). One of the points of the new co- industrial unit has been inaugurated in in this field. with a purity of 99.5%, ferro titanium in- IPresident Park Geun-hye of South operation between Iran and technology Sistan and Baluchestan Province. got, cerium oxide powder with a purity Korea paid a historic visit to Iran in ear- POSCO Inks Agreement with IMIDRO: owning countries is transfer of technical Antimony is a strategic product of Ali Akbar Salehi, Head of Iran Atomic of 99 %, cerium ingot with a purity of ly May. Park is the first South Korean A memorandum of understanding was knowledge to Iran. Also, financing and the production of which will create new Energy Organization, Vice President for 99.9%, lanthanum oxide powder with a president to visit Iran since the countries signed by Mehdi Karbasian, Chairman of attraction of foreign investment into Ira- industrial projects and job opportunities. Science and Technology Sorena Sattari, purity of 99%. established diplomatic ties in 1962. Ac- IMIDRO Board of Directors, and Kwon nian projects are as important as knowl- IMIDRO has also a project for and myself at the Mineral Processing IMIDRO, with regard to its develop- companied by four ministers and 231 Oh-joon, CEO of POSCO on the sideline edge transfer. This issue has been under- production of Kahnooj titanium under Research Centre of Iran which is under ment and monitoring position and con- business leaders and traders, the Korean of the South Korean president’s visit. lined in the above-mentioned MoU . implementation. This precious metal is IMIDRO. sidering the past negligence in the area of president came to Iran to take advantage The duration of the MoU is two POSCO, established in 1968 in produced at a limited level in the country This product, called mischmetal rare earth elements, embarked on serious of the post-sanctions opportunity to pro- years and its value is about one billion eu- Pohang, South Korea, aimed to expand and IMIDRO plans to accomplish its ingot, is comprised of four rare earth exploration, research and processing ac- mote trade with Tehran. ros. According to the agreement, POSCO steel industry. It has activities in min- industrial output. Production of pigments elements including cerium, lanthanum, tivities in this field. The organization man- This of course was a win-win situ- and IMIDRO will exchange experiences ing industries such as steel (hot and cold and titan cement is among approved plans neodymium, and yttrium. Iran Mineral aged to achieve satisfactory results with ation for both countries. Meanwhile, and technical knowhow. rolled, steel sheets, galvanized and stain- of IMIDRO. Processing Research Center in the help of domestic and foreign experts. Korea’s POSCO and POSCO Daewoo Iran has valuable experience and less steel), magnesium, and titanium and Recently, the first ingot of the collaboration with the officials in charge IMIDRO is therefore ready to attract which were part of the high level Korean knowledge in steel industry and DRI sec- aluminum sectors. strategic metal of Iran’s rare earth of the plan for rare earth elements domestic and foreign investors for the delegation to Iran signed agreements with tors so that some new steel projects are POSCO is one of the largest steel- elements was unveiled in the presence (affiliated to IMIDRO), after 6 months of development of this important field. the Iranian Mines and Mining Industries implemented with Iranian technology makers in the world which has experience

44 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 45 IMIDRO Exclusive

and capabilities in engineering and con- industries. Continued from page 36 struction sectors. In February, POSCO signed an MoU In post-sanctions era Since the inauguration of current with Iran’s Pars Kohan Diarparsian Steel Meanwhile negotiations for pur- CEO Kwon Oh-joon, the company has (PKP) to tap into the country’s high- chasing the land for construction of raced to procure new sources of revenue potential market. Under the agreement, industrial unit in Arvand free zone has through sales of self-developed technol- it will build a plant with an annual been done and the contract was signed. ogy like Finex and Compact Endless Cast production capacity of 1.6 million tons in In collaboration with the ministry & Rolling Mill (CEM). Iran’s Chabahar Free Economic Zone. of industry, mine and trade and oil An Attractive Station Under this new business model, The project will be carried out ministry in petroleum coke pilot plant POSCO will collect royalties from steel- in two stages, with the first involving launching, the first step of IMIDRO makers who make direct use of their construction of an integrated steel mill and RIPI for provision of required technology, as well as part of the revenue using Finex and CEM technology. The coke for steel and aluminum industries from orders won by companies using second stage will involve the addition fructify. for Foreign Investors their management systems. POSCO also of a cold rolling mill and a continuous Petroleum coke pilot plant con- expects to profit by dispatching its engi- galvanizing line. struction project as one of the develop- neers to overseas facilities. POSCO aims to break ground on ment projects of IMIDRO with the aim the plant within the first half of next year, to achieve petroleum coke production IMIDRO, POSCO Daewoo Sign MoU with commercial production slated to technology to supply an important part on Establishment of Parsian Port: begin in 2018. of steel and Aluminum industries re- IMIDRO and POSCO Daewoo signed a The MoU also involves POSCO quirement chain was put into operation memorandum of understanding on con- transferring its innovative steelmaking on September 22, 2015. struction and development of Parsian technology, which combines Finex and The advantage of this plant is Energy Intensive Industrial Special Eco- the production of petroleum coke for nomic Zone port in Iran. the first time in the country which has The MoU was signed by Karbasian The MoU was signed by been done with indigenous technology. and Young Sang Kim, Chairman of the Karbasian and Young Also with overcoming the technical board of POSCO Daewoo on the sideline problems rising in handling feeds with of the South Korean president’s visit to Sang Kim, Chairman high sulfur and metal contents and Tehran. of the board of POSCO their impact on the product qualities, Based on the above mentioned implementation of industrial plant will MoU, POSCO Daewoo will establish Daewoo on the sideline be technically easier. Parsian port in Parsian town (Hormuzgan of the South Korean This project which is running with Province). favorable collaboration of RIPI so far, The 220 million euro MoU will be in president’s visit to consists of 8 subprojects. The first 3 the form of investment. Tehran. have been finished and the others will POSCO Daewoo guarantees to pro- be completed by May 2016. vide knowhow, resources, means and The industrial part of petroleum required technology for development of CEM, to its Iranian partner. coke production plan is in the negotia- Parsian port. POSCO’s subsidiaries are partnering tion stage in order to attract the financ- It will also provide engineering ser- with Korean companies to ease the ers, achieving to the basic engineering vices, procurement and supply of equip- multinational steelmaker’s entry into the and finally implementation of the fac- ment, construction, installation and start- Iranian market. tory. This part will be started in 2016 up of establishment and development of POSCO Daewoo, along with Hyun- and become operational in 2019. he mining sector under the sanc- to get out of the present conditions. the country’s economic financial system Parsian port project. dai Engineering & Construction (E&C), Annual design capacity of this tions like other economic sectors Basically lifting of the sanctions so that a new situation would cause prob- An IMIDRO subsidiary, Parsian signed a deal with Iran’s Ministry of plant is more than 200 thousand tons Tand due to being connected to the would take a specific time process in lems; yet it should not be forgotten that Energy Intensive Industrial Special Eco- Health and Medical Education to build a petroleum coke and approximately world market was faced with numerous order to have its effect on different min- policies which were adopted for confron- nomic Zone, with an area of over 9800 hospital for Shiraz University of Medical one million tons of liquid products. problems such as reduced rate of invest- ing industries. Based on the similar ex- tation with the short-term impacts of the hectares is located in west of Hormuzgan Sciences, one of the country’s top medi- The raw materials will be provided ment, lack of import of modern machin- perience of Myanmar and South Africa, sanctions will undoubtedly produce plen- Province. cal schools. POSCO Daewoo will supply from VB of Abadan and CSO of Arak ery and equipment and ultimately bank- it is unlikely that after the elimination of ty of negative long-term results. With regard to easy access to free medical equipment, while Hyundai E&C refineries which will be converted to ing sanctions for the sale of products and restrictions imposed by the sanctions the However, today we have collected a waters and energy resources, this zone will be responsible for construction. petroleum coke and valuable liquid purchase of equipment. Naturally with country can make rapid growth. Of course lot of experiences in our backpacks and has been created for the development of POSCO Energy, in cooperation with products such as LPG, light and heavy the lifting of the sanctions it is hoped it should be noted that major changes af- at the same time have a promising and energy intensive industries such as steel, the Korea Electric Power Corporation naphtha and gasoil, etc. that through appropriate interaction with ter the removal of the sanctions and the bright future ahead and do not want to petrochemicals, etc., and export of these (Kepco), POSCO E&C and PKP, recently Once again we invite all investors the world we will be able to leave these process of reconstruction and economic look back at the past. products. signed an MoU for an off-gas power plant and technology owners to be with problems behind gradually. Now with the recovery, can significantly affect the po- The mine and mining industry sec- POSCO Daewoo is one of the and desalination project in Iran. POSCO us in this profitable project. Iran and gradual lifting of the sanctions, the ques- litical, economic, and social background tor follows its own specific complica- POSCO’s subsidiaries in South Korea Energy and Kepco will be in charge of regional market of these valuable tions raised in many professional circles and basis of the countries. In the case of tions. Supply and demand in this market which has activities in international trade operating and maintaining the plant and products is an evidence of profitability are: The economic future of the mine and Iran, given that the sanctions were im- depends on many factors. China’s stock and business, organizing projects and desalination facility, while POSCO E&C of this project. mining industry sector; the decisions and posed gradually and within a period of exchange is considered to be one of the resources development sectors in various will oversee their construction. policies which should be adopted in order 10 years, no major changes occurred in largest incentives for the mine and mining

46 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 47 IMIDRO Exclusive industry sector. Meanwhile, regional and under the same name and later developed North America with 5%. The remaining domestic developments have outstanding its activities by holding international 45% were Iranian experts and directors. effect on the prices. However, we monitor conferences. The institute is now holding Also companies from Australia, the four corners of the mine and mining more than 60 conferences throughout Japan, Germany, Finland, Britain, Oman, industry market in order to make the best the world annually. Metal Bulletin has Italy, Russia, India, Turkey, China, decisions for the next 10 years ahead. In held conferences with topics related to Belgium, the United Arab Emirates, these decision makings we will pay spe- Iran outside the country, including in the etc. were present some of whom had cial attention to foreign companies. Persian Gulf countries. Following the face-to-face meetings with myself and As it is obvious, Iran’s mine and July nuclear deal between Iran and the other officials of IMIDRO and more mining industry sector has been one of P5+1 and after follow-ups by the Iranian importantly a number of sessions were the attractive stations for foreign inves- authorities, including IMIDRO, it was held for further acquisition of foreign and tors. Since the 14 July agreement in Vi- decided to hold the 2015 conference on Iranian companies with each other. enna, Austria, up to date (19 September the beautiful island of Kish. Some 140 companies from 29 world 2015), some 11 high-ranking delegations This was the first international mine countries attended the two-day Iranian Iron and Steel Conference which was sponsored by IMIDRO. According to the officials of the Metal Bulletin, the event was beyond expectations. Creditable companies such as Essar, Kobe Steel, MCC, MME, Nippon Steel, Mitsubishi and Auto Tech as well as major Iranian companies in mine and mining industry sector such as Sangan, Khuzestan Steel, Mobarakeh Steel, Isfahan Steel Mill, Ian’s National Steel Company, Oxin Steel and some other companies active in the downstream industries were also present. which was welcomed and useful sessions a near future to hold more discussions the country should note that providing a This, together with scores of specialized were held. Recently we also visited the in this regard. Also, in the Republic of package of investment rules and regula- sessions for holding face-to-face talks is Republic of Azerbaijan upon an invitation Azerbaijan’s Chamber of Commerce, tions and the related tips, is among the indicative of the importance of the posi- extended by the Azeri officials. a meeting was held with the officials of most important issues required by foreign tion of Iran’s mine and mining industry During the trip which was held Baku Steel on bilateral cooperation in the companies. sector for the world. in pursuant of the joint commissions field of mining and steel. In a meeting So far, since the past two years In this conference, domestic and discussed cooperation of the two with Azeri minister for emergency over 50 top companies of the world have from Italy, Spain, France, Germany, Aus- international directors and experts exam- countries in the field of mines. situations, views were exchanged on the requested presence in Iran and investment tria, Switzerland, the Czech Republic, Po- Some 140 companies ined Iran and attraction of investment in In this visit, two meetings were held expansion of economic cooperation in the in different mine and mining industry land, Japan, Turkey and Afghanistan have from 29 world countries iron and steel fields in the post-sanctions one with the Azeri Minister of Economy field of mining. In this meeting, the Azeri sectors but there is no transparent picture visited Iran. Also, officials from Britain, era. Simultaneously with the conference, and Industry Shahin Mustafayev who is minister referred to the determination of available regarding internal rules and South Korea, China and other powerful attended the two-day an international exhibition was held with also the Chairman of the Joint Commission the presidents of the two countries for the regulations for the investment. Therefore, countries have visited our country and Iranian Iron and Steel an aim of presenting the latest software and the other with Kamaladdin Heydarov, development of relations and announced with regard to the high potentials of the held discussions with Iranian partners. and hardware achievements in the iron Minister of Emergency Situations on the his readiness to pay a visit to Iran in a previous development plans and also In 80% of the above cases, expert meet- Conference which was and steel sector to the audience. expansion of economic cooperation in the near future. Heydarov pointed to the strengthening of those potentials in the ings were held for bilateral development sponsored by IMIDRO. Main speaker of the opening session field of mine and mining industry. positive developments in Iran especially Sixth Five-Year Development Plan of of the mine and mining industry sector was Minister of Economic Affairs and In the meetings using technical the nuclear agreement and lifting of the the Islamic Republic of Iran, within and IMIDRO (Iranian Mines and Min- Finance Dr. Ali Tayyebnia. After the and scientific capacities of Iran in sanctions and termed the economic future the shortest possible time, presence of ing Industries Development and Renova- and mining industry gathering in Iran minister I delivered my speech as the the advancement of mine and mining of the two countries in the field of mining foreign capitals, especially capitals of tion Organization), in addition to holding which was hosted on Kish Island. Some Deputy Industry, Mining and Trade industry of the Republic of Azerbaijan, as highly promising. the Iranians residing abroad should be negotiations for the development of the 400 guests from inside the country and Minister and Chairman of the IMIDRO steel in particular, was among topics As for the Guinea bauxite which facilitated in Iran. country, has also supported presence of around the world attended the event so Board in which the situation of the mine discussed. It was decided that the Azeri is one of the large mines of IMIDRO The honorable minister of industry, the domestic private sector beside foreign that the big presence of major foreign and mining industry and investment minister of industry pay a visit to Iran to negotiations are underway and we have mining and trade has issued appropriate investors. companies surprised both the guests and opportunities in the sector were further discuss expansion of cooperation. a number of different scenarios for it. instructions for the removal of bureau- In continuation we decided to hold the organizers. reported a copy of which is available Meanwhile, proposals were made Soon we will take measures for attracting cratic rules and regulations on the way a specialized conference in Iran with the Statistics released by Kish Confer- on the official website of IMIDRO at for the presence of investors from the foreign participation or investors. The of domestic and foreign investment. IM- focus on steel continuum. This event took ence Center show that 55% of the par- www.imidro.gov.ir. Republic of Azerbaijan in Iran for making Middle East has been turned into an IDRO is taking serious steps in coopera- place with the participation of the Metal ticipants were mine and mining industry In addition to welcoming the investment in the field of exploration and aluminum production hub and products tion with the industry ministry to improve Bulletin in order to bring us a step closer giants with some visiting Iran for the first presence of foreign countries in Iran, mine safety. A delegation from Baku of this mine have proper market. the rules and regulations for the mine to international markets. time. Meanwhile, the European compa- we also visited a number of countries is to visit Iran in this regard. Bilateral and mining industry sector. In conclu- The international Metal Bulletin nies and experts with a share of 20% al- with an aim of restoring our lost share in cooperation in free zones such as Aras and Transparent Regulations, Require- sion, once again I would like to invite all institute started its activities 102 years located the largest number to themselves the world markets. In the conference in Chabahar in the field of steel was among ment of Investor Companies: Organi- the investors, owners of technology and ago in ferrous and non-ferrous metals followed by East Asia and Australia Vienna, Austria, Iran’s mine and mining other topics discussed in the meetings. zations and officials that are responsible multi-national companies to meet in Teh- and markets by publishing a magazine with15%, the Middle East with 15% and industry sector had a satisfactory presence An Azeri delegation will visit Iran in for the attraction of foreign investors in ran and play a role in our market.

48 IRAN INTERNATIONAL, December 2016, No. 81 IRAN INTERNATIONAL, December 2016, No. 81 49 IMIDRO Exclusive

t the invitation of Minister for Energy and Resources of Aus- Atralia’s Victoria State, Lily D’Ambrosio, Managing Director of the Iranian Mines and Mining Industries De- velopment and Renovation Organization (IMIDRO) Dr. Mehdi Karbasian attended the International Mining And Resources Conference Melbourne (IMARC Mel- bourne) from November 9-12, 2015. Dr. Karbasian headed a delegation compris- ing IMIDRO directors and representa- tives from Chadormalu Iron Ore Com- pany, Gol Gohar Complex and Mines and Metals Investment Company as well as chairman of Tehran Chamber of Com- merce, Industries, Mines and Agriculture and his deputy to the conference. CSIRO, PWC, and KPMG which are all reau in Iran (Tehran) and said the Aus- among creditable Australian companies Dr. Karbasian urged tralian government and companies are in the field of mine and mining industries. fully aware of economic opportunities in Iran’s Successful Presence In these meetings, the Australian sides Australian companies to the Iranian market and expansion of eco- were invited to make investments in the move faster if they want nomic cooperation with Iran is of special field of mine and mining industries in attraction for them. Iran with the priority of transferring tech- to maintain presence in Foley referred to the position of in IMARC Melbourne nical and technological knowledge. the Iranian market and the world known mining companies and On November 12, Karbasian started said only a few countries such as Brazil, Dr. Karbasian, one of the main D – joint cooperation and investment in mining relations of Iranian and Australian his meetings with Hugh Morgan, Man- do not want to lag behind Canada and the United Sates have min- speakers of the event, delivered a speech a third country such as the CIS countries companies through further communica- aging Director, and senior officials of the European and East ing companies as large as the Australians. on ‘prospect of the mining sector and and Afghanistan and transfer of technical, tion of IMIDRO and Austmine. Arete Capital Company which is one Therefore, presence of Australian compa- mineral industries of Iran; investment op- technological and expert training knowl- Karbasian held a separate meeting of the largest financing and investment Asian rivals. nies will result in outstanding develop- portunities’ which was hailed as one of edge related to the mine and mining in- with the managing director and senior companies of Australia. The Australian ment in promotion of bilateral relations the most popular programs of the confer- dustries. directors of Instep, the largest expert company was invited to make financing of Commerce and discussed resumption in the mining sector. ence. Clearly outlining the advantages of In a separate meeting with Isaac training company in the field of mine and and direct investment in IMIDRO proj- and expansion of economic ties between According to the Australian ambas- investment in the Iranian mining sector Court from the Australian Trade Com- mining industries. The Australian side ects. This was followed by a meeting the two sides’ companies. sador, the two sides will have a good and mining industries, Karbasian made mission, the two sides discussed expan- announced its full readiness for coop- with Terry Arson, Managing Director of In his meeting with Frydenberg, future for the development of coopera- a reference to the valuable mineral re- sion of trade relations in the field of min- eration in the field of education, research Forescue Metals Mining Group, the third Karbasian presented him with an of- tion, especially in the mine sector and the serves of Iran, considerable gas reserves, eral substances. and development with IMIDRO through large producer of iron ore in Australia and ficial invitation from Minister of Indus- mineral industries. Also speaking in the long and strategic coastlines, access to On November 11, Karbasian met Iran Mineral Processing Research Center the fourth iron ore giant in the world with try, Mine and Trade Mohammad Reza meeting, head of the IMIDRO board of international waters, expert and knowl- and conferred with Bob Adam, Manag- (IMPRC) and other relevant companies. a production of 165 million tons of iron Nematzadeh to visit Iran. Grounds were directors welcomed presence of Austra- edge-based manpower, and domestic ing Director of AMC (Australian Mining Australia is one of the advanced mineral ore per year and possessing railroad and also prepared for the presence of a high- lian companies in Iran and said an invita- and regional consumption markets. He Company) to discuss long-term contracts countries and educational interaction be- port transport system. It also owns 100% ranking Australian delegation in the field tion has been forwarded to the Australian explained development strategies of the for the supply of the required bauxite by tween the two countries will be highly of the equipment and facilities for pro- of mine, industry, agriculture and trade in mines minister by Nematzadeh. Karba- mine and mining industries of Iran and Iran’s aluminum industry. The two sides beneficial. duction and transportation up to the des- Iran. Also, it was decided that Australian sian stressed: “We also intend to have invited all the investors to visit Iran and also reviewed the process of cooperation On November 11, also a meeting tination. Karbasian demanded transfer of companies attend IMIS 2016, Iran’s min- presence of officials and head of large get closely acquainted with the condi- in bauxite mine in Guinea which is highly was held between Karbasian and Steve expertise and participation in the devel- ing conference. Australian companies in Iran’s special- tions. He termed public and legal protec- important for Iran’s aluminum industry. Coughlan, head of the board of directors opment of Iran’s mining infrastructures in Australia’s Ambassador in Iran Paul ized conferences such as oil and steel – tion for the presence of the investors as a In continuation of the business trip, and owner of Byrnecut Company which the form of joint ventures, either directly Foley in the closing days of 2015 met IMIS as well as prospect of steel (ISMC) relative advantage in this regard. Karbasian met with Robert Trzebski, is the largest contractor company in Aus- or jointly through Australian and Iranian with head of IMIDRO board of directors prior to the visit of the Australian eco- In the course of the meetings which senior Executive Director of Austmine tralia in the field of mine, especially un- companies. and announced that the Australian min- nomic delegation.” were held on November 10, Karba- which is the largest mining association in derground mines. In this meeting, the two Karbasian also conferred with Josh ister of trade and investment will visit He further said that in IMIDRO’s sian and Jay Meek, Trade Deputy of the Australia with a turnover of $90 billion in sides held good talks on further coopera- Frydenberg, MP and Energy and Re- Iran at the head of an economic delega- point of view, cooperation and invest- Economic Development Department of 2014. The Australian side announced full tion on IMIDRO projects in the form of source Minister of Australia and reviewed tion comprising senior directors of large ment in mining information, research and the State of Victoria and John Butler, readiness for cooperation in the field of EPCF. expansion of economic relations between Australian mining, mineral, industrial development as well as technology en- Commercial and Economic Representa- transfer of technology from exploration Karbasian also attended a luncheon Iran and Australia, especially in the field and trade companies. He said according joys higher priority than other fields. Dr. tive of Victoria in Dubai held talks and up to final exploitation. Inviting members hosted by Ms D’Ambrosio. of mine and mining industries. Mean- to the schedule, the visit will take place Karbasian urged Australian companies exchanged views on the expansion of of the companies affiliated with Austmine On the second day of the visit, Kar- while, Chairman of Tehran Chamber of by May 2016. to move faster if they want to maintain Iran-Australia economic relations in the to pay a visit to Iran to become acquaint- basian, accompanied by IMIDRO ex- Commerce, Industries, Mines and Agri- The ambassador also announced presence in the Iranian market and do not field of mine and mining industries by ed with investment opportunities, the perts and directors, met with officials culture Masoud Khansari met with Mark the decision of his country’s chamber of want to lag behind the European and East focusing on trade-exploration and R & IMIDRO chief stressed the expansion of from World Poly, Gasco, ATC Williams, Stone, Chairman of Melbourne Chamber commerce for opening an economic bu- Asian rivals.

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