Iron and Steel Industries in Iran

Transcription

1 Iranian Iron and Steel Conference September 2015 Iron and Steel Industries in Iran Dr. Mehdi Karbasian (Deputy Minister and Chairman of IMIDRO) Iran Mines and Mining Industries Development and Renovation Organization September

2 About IMIDRO. History and Future IMIDRO Established 13 years ago by merging the Ministry of Mines and Metals and Ministry of Industry to promote development of Mines and Mining Industries. Our Mission is to develop and support Mine and Mining Industries Projects and companies in Iran. Today IMIDRO Ranked As a Developing Organization by Law. We have more flexibility than any company within Government to define and establish the projects IMIDRO Currently has 9B US$ project in Steel, Zinc, Copper, Aluminium, Gold, Magnesium History Future X1000 Jobs Projects $ 26 $ B$ investment investment (Billion US$) Jobs (thosand) Projects 2

3 Human Resources Development Infrastructure Development International Projects Investment in Hi-Tech & Exploration SCOPE OF ACTIVITY Productivity Marketing & Export Support Technology development Project Funding Support 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 3

4 IRAN: The Main Player of Steel Production and Consumption in MENA 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 4

5 Global Steel Consumption Growth for the next 10 years Create Market Opportunities for Producers World Steel: Its predicted that the annual growth of Steel demand will be average 2.5% annually till 2030 because: A further 1.2 Billion peoples will urbanize globally by 2030 China GDP/Capita will reach to US$, India 2300 US$ by 2030 Chinese Crude Steel Production is expected to reach between 935 to 1000 million MT by 2030 (BHP/Rio) Pig iron growth rates will decline as scrap use increases Growth ex-china is expected to be driven by India, south east Asia and lesser Latin America and CIS 5

6 Monthly Steel Production (thousand Metric Ton) ,366 1,409 1, IRAN STEEL INDUSTRIES: ,399 1,455 1,428 Iran, 1,273 Saudi Arabia, Egypt, Qatar, kazakhstan, 229 Jan Feb Mar Apr May Jun Jul Egypt Iran 1,366 1,409 1,315 1,399 1,455 1,428 1,273 kazakhstan Qatar Saudi Arabia THE MAIN PLAYER IN MENA Saudi Arabia 20% Qatar 9% Kazakhstan 8% Country Production 7 month 2015 Egypt 17% Iran 46% World Ranking China Japan India USA Russia Korea turkey Italy Taiwan Mexic Iran France

7 Why Steel production in Iran is so competitive? Crude Steel production Cost Per Ton: 280 US$, Margin around 27% of Sales Skill workers and Experienced Companies Big Local Market =25% Middle East Big Consumption in Neighbors Suitable Road and Rail Network Suitable Infrastructure Special Economic zone (Tax free) Security is one of the best in Middle East Natural Gas & Energy with Fair Price Iran Iron Ore Mines Shown in the map Access to Raw Materials from Eastern and Northern Neighbors with No direct access to Sea (Afghanistan and CIS Countries) Prices in US$ Cent % Lower % Lower Iran than USA than Turkey Gasoline 29 55% 81% Nat. Gas 4 58% 89% Electricity 3 28% 75% South Pars Field, largest Nat gas Storage Bandar Abbas SEZ Afghanistan resources (1000 B$) and opportunity for Iran Chabahar as new raw material HUB Iran has a Long Sea Border. 19/09/2015 7

8 Iron and Steel Sector in Iran IRAN Iron Ore 14th in world Ranking, with a Reserve of 2.7 Billion Tons Concentrate Iron Ore Capacity: 36.8 M.Ton + 4 M.Ton within 6 months Target for 2025: 66.2 Million Ton Pelletizing Plant Capacity: 22 M.Ton M.Ton within 6 months Target for 2025: 82.8 million Ton Lump and Fine Iron Ore Current Production: 11 Million Ton Export: 7.5 Million Ton Pig Iron (BOF) Current Production: 2.2 Million Ton Target for 2025: 5.9 Million Ton DRI (Direct Reduced Iron) Current Production: 16 Million Ton Target for 2025: 54.6 Million Ton Crude Steel from EAF Current Production: 14 Million ton Target for 2025: 46.1 Million ton 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries Total Crude Steel Current Production: 16 Million Ton Target for 2025: 52 Million Ton Due to availability of Nat Gas, More than 85% of steel production in Iran is based on EAF technology 8

9 Outlook for Iran Steel and DRI Consumption Steel Consumption in Middle East is about 76 Million ton annually. Iran raked as #2 and has a Market Share of 25%, while Turkey Share remain 35% as Top of Steel Consumer. Recent studies shows Iran Crude Steel Consumption will reach to more than 46 million ton in Additionally there are export opportunities of 9 million ton for Iranian made Steel (Total 55 Million Ton) There are many opportunities for investment of foreign partners on these Iron Ore and Steel projects. Most of Steel making projects under development in Iran uses DRI-EAF technology. Current production of DRI in Iran is 16 million ton which will reach to number 1 in world ranking in production of DRI (56 Million ton in 2025) 60,000 50,000 40,000 30,000 20,000 10,000 47,000 42,000 37,000 32,000 27,000 22, x Ton Iran Steel Consumption 2025 Different Scenario 46,341 Current DRI Capacity and additional Expansion till /09/ ,000 5,660 2,720 2,420 1,460 9 Iran Saudi Arabia UAE Qatar Oman Bahrain Iraq

10 Iron Ore Concentrate and Pellet Projects already defined to reach to 55 million of Crude Steel in There are still un-balances in supply/demand of Raw Materials and opportunity for definition of new projects including up to 19 million ton in Concentrate Iron ore Supply/Demand Balance Current Capacity projects Under Construction total in 2016 Required till 2025 Balance For Exploration of new resources, IMIDRO will invest up to 500 Million US$ in the next 5 years to define and finalize new deposits /09/

11 Ore Reserve and Production Middle East Iron ore exploitation grow by more than 6 times during the past 10 years and reached to 51 Million Ton. Average grade for Iranian Iron ore is 51% which 95% of them are mainly Magnetite and mainly located in Eastern Part of the country, Mainly in Yazd, Kerman and Khorasan Provinces. Currently Iran operating 156 Iron Ore mines (5% of them with a reserve 86% of the country reserve controlled by IMIDRO). Mine Production Costs: 16 US$/Ton (one of the best practices in the world) IMIDRO Biggest mines are including: Sangan with a reserve of 1.2 Billion Ton (Ranked as 9 th in the world) Gole Gohar with 1 Billion Ton (Ranked as 10 th in the world) Chadormalu with 0.2 Billion Tone 19/09/

12 Exploration Projects and Opportunities for Partnership and Reserve Sharing Province Area Khorasan-Sangan Sistan Baluchistan-Border line Sistan Baluchistan-Caravan South Khorasan-Border line 6116 Fars-Bahram Goor 5000 Ardebil-Ghezelozan-Khalkhal 1351 Kerman-Hormozgan-Sirjan Ardebil-Sabalan 1696 Ardebil-Baghrodagh 874 Yazd-Bafgh-Robat West Azarbaijan-Khoi-Maako 1218 West AzarbaijanTakab- Piranshahr 5135 Kohkelooyeh-Boyerahmad 1006 Other Area 100 K Total Area (Km2) 200 K Piran Shahr N.Kordestan S.Kordestan Kohkelooyeh -Boyerahmad Kerman Shah Ardebil Golestan Fars Bahram Goor Yazd-Isfahan Yazd-Robat Kerman (Sirjan-Fariab) Golestan Saravan Sangan Khorasan Border Sistan-Balu Border 3 years Planned Land Resource = 200,000 Km2 Activities: Airborne hyper spectral sensors for geological projects 12

13 Investment Opportunities and Incentives Iron and Steel Sector Exploration-Mining and Processing-Steel Plant and Related Products 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 13

14 Incentives for Foreign and Private Sector investment IMIDRO is promoting foreign and private investment in the projects in Mining and Metal projects and has the following incentives for investors. To support the project, IMIDRO is willing to participate as a partner for foreign investor, if required Incentives Mining Exploration Mine projects long term contract for Exploration, Extraction, Processing, Marketing Mining Industries Support for allocation of loan from Iran Oil Fund for part of investment Required permits from Authority long term contract for raw material supply Allocate Land in Special Economic Zone (Tax Free ) To Provide infrastructures required in SEZ Reserve Sharing Contract after Exploration Possible IMIDRO participation as shareholder in J.V Company Exploration Risk Insurance by Government FIPPA Coverage 14

15 Investment Opportunities in Mining Sector 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 15

16 Investment Opportunity in Coal Sector Area Zone Reserve Million Ton Proven Reserve Project Designed Capacity Invest. Parvade4 Tabas S.Khorasan Mine Development+Related Equipment+a Plant to produce Concentrate coal 450,000 Concentrate Coal 101 M Euro Savadkooh Mazandaran Kordabad Mine Development+Related Equipment's 230,000 Raw Coal 37 M$ Coking Coal Plant in Savadkooh 300,000 Coke 86 M Euro 19/09/2015 IMIDRO: Your gateway to Ir an's mines and mining industries 16

17 Investment Opportunity in Steel Sector Plant Location Project Inves. Chabahar Steel Plant Located in 5 Million Ton Steelmaking 3.15 B$ Chabahar Free trade zone Plant MW Power Plant Natural Gas now reached to Pakistan Border and Raw Material output from Afghanistan mines are increasing with a big portion of them to be exported via Chabahar Port. There are unique opportunity of investment for an steelmaking plant using Nat Gas from Iran along with Iron ores from Iran and Afghanistan. Most of Infrastructures required for the project already available or under development Bandar Abbas-2 Steel Plant Located PGSEZ 5 Million Ton Steelmaking Plant 3 B US$ The government and private sectors made a big investment in PGSEZ during past 10 years. Now this SEZ productizing annually 1.6 Million Ton of Steel, 200,000 Ton of Aluminum and other Mining industries products like Zinc, DRI for export or local consumptions. PGSEZ located close to sea and has most of infrastructures required for this new project already available at site including railway, Nat Gas, A 12 Million ton of Jetty (6 million ton operation, the rest by end of 2015) for import and export of raw material. 2 Power Plant (1000 MW) under construction to provide necessary electricity for industrial plants currently under operations. Steel Plant Located in Parsian SEZ 1.6 Million Ton Steelmaking Plant 800 M$ South Pars Field is world biggest Natural Gas Storage with total reserve of 51 trillion cubic metres. To be able to use the natural gas, IMIDRO intend to produce mineral industries which raked as Energy Intensive Products like Aluminium, Steel and Cement and in PSEZ which located close to sea. Nat gas already available and a Jetty with a capacity of 15 Million Ton already planned and studied. Total Investment Opportunity 6.8 B$ Assaluyeh Steel Plant BandarAbbas-2 Steel Plant Chabahar Steel Plant 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 17

18 Other Opportunity (Graphite Electrode, Titanium oxide and Power Plant) Plant / Location Capacity Inves. Kahnoj Titanium Project- Southern Kerman 130,000 Ton Concentrate 103 M$ + 70,000 Pigment The Mine is one of the world biggest Titanium Mine with a reserve of 150 Proven Million Ton and is excellent from economical view (Internal rate of Return). Graphite Electrode for Steelmaking process (EAF) -Ardakan, Yazd 30,000 ton 300 M$ Every Ton of Steel in Iran normally use between 2 to 2.5 Kg of Electrode. Iran now producing up to 14 Million ton of Steel using EAF method which means an annual consumption of ton of Graphite Electrode, while the production of steel will increase to its outlook (52 Million Ton), Demand for Graphite electrode will reach to 100,000 Ton. The Ardakan Plant is under construction in partnership with Steel Makers and IMIDRO and there is unique opportunity for foreign investors to involve as technology and machinery provider or financer. Power Plant - Bandar Abbas 2, Hormozgan 500 MW 260 M Euro A lot of industries currently under operation (HOSCO, Almahdi ) or construction (HOSCO 2, Almahdi 3, Saba Foolad, Kaveh )in SEZ in Bandar abbas. As they come to operation, They need a huge power where this project will provide electricity for a portion of future demands. IMIDRO is willing to sign the contract with interested partners based on BOO or BOT for this project. Power Plant - Parsian, Hormozgan 500 MW 260 M Euro Due to Availability of Nat Gas in Assaluyeh, IMIDRO Established a SEZ for Energy Intensity Products Like Steel and Aluminum in Parsian. As an incentive, IMIDRO also provide infrastructures for investors if required including power and water and Jetty. We guarantee the market for investors in infrastructures and purchase the products (electricity, water ) in advance. IMIDRO is willing to sign the contract with interested partners based on BOO or BOT for this project. Total investment: 1050 M $ 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 18

19 For More Information about IMIDRO Projects in Steel Sector or Other Sectors, Please visit us at Also you are warmly welcome to visit us at our Head office: No.43, Sepahbod Qarani Ave. Tehran, Iran Contact Person: Mr. Mohammad Taheri, Head of International Affair Phone: Fax: you can download a copy of this presentation from IMIDRO WEBSITE at THANK YOU! 19/09/2015 IMIDRO: Your gateway to Iran's mines and mining industries 19