IRAN MINING INDUSTRY. Iran Mine and Mining Industrial Development organization (IMIDRO) April 2014, Germany



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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 Population Average age of population The country s highly educated student statistics Climate Geographical Location Natural Resources &Energy 1,648,195 Km2 77 million 30 year 4.5 million Four seasons with more than 300 sunny days At cross road of Middle East, Asia, Central Asia & CIS gas, oil, telecommunication, transportation, as well as public utility with a competitive cost.

Iran s Position in Global Gas Industry 1 st 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 barrels 9.4

Dispersion of Gas Reserves in the Country Caspian Sea Babaghir Tangbijar Serajeh Gorgan Ghezel Tapeh Khangiran Gonbadli Kabirkouh Kouhsamand Mond Mokhtar Aghar N. Pars Field S. Pars Field Ferdowsi Golshan Dalan Kangan Homa Varavi Shanoul Tabnak Slakh Persian Gulf Sarkhoun

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 Exploration Mining Exploitation Mining Industries Industrial productions Import Import IMIDRO

SOME OF THE PROJECTS SUCCESSFULLY ERECTED IN PAST 10 YEARS Since 2001, IMIDRO successfully invested to develop projects related to mines and mining industries: Number of projects: 70 Value of investment: 10B US$ Azarbaijan Copper Concentrate Aluminum Smelter Plant Iralco Phase II Steel Project Khuzestan Steel Wide strip plant Oxin Steel project Iron Ore Concentrate Sangan (Phase 1) Concentrate Coal Tabas Mine Steel Project (EAF) Mobarakeh, Isfahan Iron Ore Concentrate Gole Gohar Pelletizing Plant Gole Gohar Iron Ore Concentrate Chadormalu Cement Plant Bushehr Copper Project (Cathode) Sarcheshmeh Energy Intensive Products Parsian& Lamerd Special Economic Zone Persian Gulf Special Economic Zone(mines and mining industries zone Aluminum Smelter Almahdi (Phase II) Steel Plant Hormozgan Steel Project Coke& Steel Project(BOF) Isfahan Steel Company Cement Factory Zabol

CURRENT POSITION OF RESOURCES AND MINING INDUSTRIES OF IRAN Mineral resource Iran Reserve Unit Iran Reserve as % of world Iron Ore 2.7 Billion Ton 0.8% Copper 2.6 Billion Ton 4% Zinc 11 Million Ton 4% Gold 250 MT 0.5% Barite 10 Million Ton 5% Phosphate 16.5 Million Ton 0.05% Iran has more than 68 kind of mineral, total country reserve is 43 Billion MT, with an estimated value of 700 B US$. Iran Export of mines and mining industries was around 8 Billion US$ last year Mines and Mining Industries currently employee more than 620000 person in Iran Market Share of mine and mining industries in Tehran Stock Exchange is more than 25% of total value of Stock 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 Steel Copper cathode Aluminum Zinc Mineral Products Gold Our Vision (year 2025) 55 Million MT 800.000 MT 1.5 Million MT 300.000 MT 200 Million MT 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

Item Project Name INVESTMENT OPPORTUNITIES IN MINING AND MINING INDUSTRIES OF IRAN Capacity (x1000 Ton) Product Value (Million Euro) IMIDRO Willing as Share Holder (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 Arc Furnace 250 35%

Item Project Name Capacity (x1000 Ton) Product Value (Million Euro) IMIDRO Willing as Share Holder (Negotiable) 9 Parvarde 4 450 coal concentrate 95 35% 10 Eastern Parvade 600 coal concentrate 142 35% 11 Savadkooh 300 Metallurgy Coke 90 35% 12 South Aluminum (SALCO) 13 Green Coke 200 14 15 Kahnoj Titanium Project Guinea Bauxite and Alumina Plant 330 Aluminum Ingot 880 49% Green Coke for Anode 149 35% 70 Oxide Titanium 86 35% 1600 Bauxite& 800 Alumina 16 Khor o Biabanak 25 Alumina for Aluminum Smelter 1,000 49% MGO (Magnesium Oxide) 20 35% Total Investment Opportunity (Million Euro) 4,628

EXPLORATION AREAS WITH AREAL EXTENT OF 200,000 KM 2

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

Cession of land on a time base in the special zones INVESTMENT PROTECTIONS AND GOVERNMENT INCENTIVES 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.