IRAN MINING INDUSTRY Iran Mine and Mining Industrial Development organization (IMIDRO) April 2014, Germany INTRODUCTION OF THE ISLAMIC REPUBLIC OF IRAN AND ITS CAPABILITIES Areal Extent 1,648,195 Km2 Population 77 million Average age of population 30 year The country’s highly educated 4.5 million student statistics Climate Four seasons with more than 300 sunny days Geographical Location At cross road of Middle East, Asia, Central Asia & CIS Natural Resources &Energy gas, oil, telecommunication, transportation, as well as public utility with a competitive cost. Iran’s Position in Global Gas Industry • 1st in Terms of Gas Reserves Energy Iran Reserve Unit Iran Reserve as % of world Gas 33.6 Trillion cubic meters 18 Oil 157 Thousand million 9.4 barrels Dispersion of Gas Reserves in the Country Caspian Sea Khangiran Ghezel Gorgan Tapeh Babaghir Gonbadli Tangbijar Serajeh Kouhsamand Kabirkouh Mokhtar Mond Aghar Dalan Kangan Homa N. Pars Field Varavi Ferdowsi Shanoul Sarkhoun Golshan Tabnak Slakh S. Pars Field Persian Gulf EXISTENCE OF 68 TYPES OF MINERAL INCLUDING IRON ORE, COAL, GOLD, LEAD, ZINC, COPPER, ETC, WITH AN ESTIMATED VALUE OF 700 B US$. IMI DRO IRANIAN MINES AND MINING INDUSTRIES DEVELOPMENT AND RENOVATION ORGANIZATION ABOUT IMIDRO • Iranian Mines & Mining Industries Development & Renovation, known as IMIDRO is a major holding company active in the mining sector in Iran which is responsible for development of mines and mining industries in Iran. • Since its establishment in 2001, it successfully erected and commissioned more than 10 Billion US$ projects related to up stream and downstream of steel, Aluminum, Copper, Zinc, Potash, Gold, Cement and so on. Export Export Export Mining Exploration Mining Exploitation Industrial Industries productions Import Import IMIDRO SOME OF THE PROJECTS SUCCESSFULLY ERECTED IN PAST 10 YEARS Azarbaijan Iron Ore Concentrate Since 2001, IMIDRO Copper Sangan (Phase 1) Concentrate successfully invested to Concentrate Coal develop projects related Aluminum Smelter Plant Tabas Mine Iralco Phase II to mines and mining Steel Project (EAF) industries: Mobarakeh, Isfahan Steel Project Khuzestan Steel Iron Ore Concentrate Number of projects: 70 Gole Gohar Value of investment: 10B US$ Pelletizing Plant Gole Gohar Wide strip plant Iron Ore Concentrate Oxin Steel project Chadormalu Copper Project (Cathode) Cement Plant Sarcheshmeh Bushehr Coke& Steel Project(BOF) Energy Intensive Products Isfahan Steel Company Parsian& Lamerd Special Economic Zone Cement Factory Zabol Steel Plant Persian Gulf Special Economic Aluminum Smelter Hormozgan Steel Project Zone(mines and mining industries zone Almahdi (Phase II) CURRENT POSITION OF RESOURCES AND MINING INDUSTRIES OF IRAN Mineral Iran Unit Iran Reserve • Iran has more than 68 kind of mineral, resource Reserve as % of world total country reserve is 43 Billion MT, with an estimated value of 700 B US$. Iron Ore Billion Ton 0.8% • Iran Export of mines and mining 2.7 industries was around 8 Billion US$ last Copper 2.6 Billion Ton 4% year • Mines and Mining Industries currently Zinc 11 Million Ton 4% employee more than 620000 person in Iran Gold MT 0.5% 250 • Market Share of mine and mining Barite Million Ton 5% industries in Tehran Stock Exchange is 10 more than 25% of total value of Stock Phosphate 16.5 Million Ton 0.05% Exchange equal to 30 B US$ PRODUCTION IN 2013 Product 2013( Million T ) Crude steel 14.308 Finished steel 11.916 Copper (cathode) 0.189 Aluminum 0.295 Coal (Concentrate) 0.858 Iron ore 32.789 OUR VISION IN MINES AND MINING INDUSTRIES • IMIDRO is responsible for achieving Iran’s development objectives defined in the 2025 • To achieve Our Vision and desired capacity, an estimate investment of 40 billion US$ required. Product’s Name Our Vision (year 2025) Steel 55 Million MT Copper cathode 800.000 MT Aluminum 1.5 Million MT Zinc 300.000 MT Mineral Products 200 Million MT Gold 5 MT EXPANSION & DEVELOPMENT Total Project investments at the end of 2013 In hand Tender; and legal doc’s stages Total Group Quant M ($) Quant M ( $ ) Quant $ Steel 19 3877 9 2014 28 5892 Aluminum 3 333 10 5535 13 5868 Mining 6 456 12 1693 18 2149 Copper 15 2578 14 667 29 3155 Total 43 7244 45 9819 88 17063 INVESTMENT OPPORTUNITIES IN MINING AND MINING INDUSTRIES OF IRAN IMIDRO Willing as Capacity Value Item Project Name Product Share Holder (x1000 Ton) (Million Euro) (Negotiable) 1 Sabzevar Steel 800 Steel Ingot 258 35% Complex 2 Baft Steel Complex 800 Steel Ingot 245 35% 3 Shadegan Steel 800 Steel Ingot 276 35% Complex 4 Neyriz Steel Complex 800 Steel Ingot 273 35% 5 Mianeh Steel Complex 800 Steel Ingot 282 35% 6 Ghaenat Steel Complex 800 Steel Ingot 289 35% 7 Sefid Dasht Steel 800 Steel Ingot 293 35% Complex 8 Graphite Electrode 30 Electrode for Electric 250 35% Arc Furnace IMIDRO Willing as Capacity Value Item Project Name Product Share Holder (x1000 Ton) (Million Euro) (Negotiable) 9 Parvarde 4 450 coal concentrate 95 35% 10 Eastern Parvade 600 coal concentrate 142 35% 11 Savadkooh 300 Metallurgy Coke 90 35% South Aluminum 12 330 Aluminum Ingot 49% (SALCO) 880 Green Coke for 13 Green Coke 200 35% Anode 149 Kahnoj Titanium 14 70 Oxide Titanium 35% Project 86 Guinea Bauxite and 1600 Bauxite& Alumina for Aluminum 15 49% Alumina Plant 800 Alumina Smelter 1,000 MGO (Magnesium 16 Khor o Biabanak 25 35% Oxide) 20 Total Investment Opportunity (Million Euro) 4,628 EXPLORATION AREAS WITH AREAL EXTENT OF 200,000 KM2 ADVANTAGES AND COMPETITIVENESS IRAN FOR FOREIGN INVESTORS TO DEVELOP MINES AND MINING INDUSTRIES • Export of goods and services without any commitment to reintroduce export proceeds to the Country (i.e., no surrender commitment requirement); • The right to transfer profits (dividends) as well as capital and gains on capital in foreign exchange. • The right to receive compensation resulting from expropriation (deprivation of ownership) and nationalization of foreign capital. • Energy, with competitive price advantages, Including natural gas, ranked as Number 1 in world reserve of natural gas and number 3 in Oil reserve • Big local market for mining industries, Iran use annually 20 million MT of Steel and more than 300K T of Aluminum ingot and … • Strategic Location, easily access to markets in CIS, Turkey, Middle east (including Iraq, Afghanistan, Turkey, GCC) and the rest of world • Well educated Human resources with expertise in mining and metal industries • Suitable infrastructures including access to electricity network, road and railways • For more information, Please refer to Organization for Investment Economic and Technical Assistance of Iran, www.oietai.ir IMIDRO SPECIAL ZONES • Energy-Intensive Industries Special Zone, Lamerd – Parsian Site • Persian Gulf Special Economic Industrial & Mining Zone • Chabahar Special Economic Mines & Mining Industries Zone INVESTMENT PROTECTIONS AND GOVERNMENT INCENTIVES Cession of land on a time base in the special zones Cession of mine royalty & extraction right as well as abandoning mine extraction of the mine Insurance coverage advantage in mine exploration, exploitation & mineral processing Advantage of laboratory services in Karaj Center and /or advantage of personnel training in the project startup Infrastructure (energy and water) assistance in provision Guarantee for feed with especial conditions and/or guaranteed purchase of product Provide support for utilizing National Development Fund facilities and /or support the projects to receive foreign & domestic facilities We are looking forward your participation in Iran’s mines and mining industries..