This document summarizes three investment opportunities in Iran's steel industry as presented at the 2nd Iran Steel Export Perspectives Conference in Istanbul, Turkey in September 2015. The first is a 10 MTPA mega steel plant project to help meet national production targets. The second is a 2.5 MTPA pellet production project using iron ore from small mines. The third involves constructing 225,000 TPA ferro manganese plants to address shortages. All three prioritize private and foreign investment and offer tax incentives.
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Barsoo, founded in 1993, has been the
pioneer in providing consulting engineering
services in Iran.
The company offers integrated front end
engineering design and consulting services in
a wide range of sectors like iron and steel,
ferro-alloys, electric power and utilities and
wastewater, infrastructure and other allied
industries.
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Scope of Services
Feasibility (techno- economical) studies, market study
Procurement management
Design and detailed engineering
Industrial buildings, facilities and infrastructure design
Execution of turn-key / EPC projects
Inspection services
Supervision services
Project management (MC)
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Certificates and Memberships
Quality management system / ISO 9001:2008 /
TÜV Certificate, valid up to 2018
Project management system based on PMBOK
Certificate of eligibility for consulting services
/Iran MPO
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Fields of Activity
Base Metals
and Minerals Processing
Infrastructures
and Off-Site Facilities
Power Plants, Transmission and Distribution
Oil, Gas and Petrochemicals
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Projects Distribution in Iran
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According to National plan for
development of steel production,
based on target consumption per
capita of 480 kg,
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At 2025, 42 MTPA crude steel shall be
produced
With consideration of 13 MTPA, export
target, total annual production capacity of
the Country shall be reached to 55 MTPA
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Predominate route of steel development
Based on:
• Non-availability of enough coking coal
• Non- availability of enough scrap
• Huge available sources of Natural gas
with considerably low price
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• Nature of iron ore mines of the
Country
Main route of steel development is
decided to be Direct Reduction -Electric
steel making (DR- EAF)
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So, from 55 MTPA, Target Value of crude
steel, 49 MTPA through DR-EAF route, 6
MTPA through Blast Furnace (BF) & Basic
Oxygen Furnace (BOF) i.e BF-BOF route
would be produced
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Steel development locations
Based on:
• Serious issue of dry climate of the
Country and so low water resources
• Access to international marine
transportation
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Considered locations are:
• Beside big iron ore mines of the
Country, preferably, for beneficiation &
pelletizing
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• Beside south coasts of the Country
(Persian Gulf & Oman Sea) for direct
reduction, steel making & hot rolling
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For realization of National plan
Target capacities of steel production
chain material have been defined
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Considering:
Total expected capacities to be realized at
2025, shortages, of the steel production
chain material would be as follow:
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Potential fields of investment
• Exploration & development of new iron
ore mines
• Iron ore beneficiation lines beside new
developed mines
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• Scrap processing plants
• Production of refectory material
• Production of graphite electrode
• Ferro alloys production
• Lime & dolomite production lines
• Construction of new power plants
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For realization of target capacity of 55 MTPA
crude steel, The holding for State investment,
i.e. Iranian Mines and mining Industries
Renovation & Development Organization
(IMIDRO)
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Is promoting investment of Iranian private sector
and would welcome to Foreign investors for:
• Production of indicated shortages
• Production of additives & consuming materials
3, High Priority, investment “packages” are
introduced in this presentation
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31. 10 MTPA, Mega Steel
Green Field, project
To be developed by IMIDRO with foreign & local strong
investors
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Available infrastructure, advantages &
incentives
• Port facilities beside high depth areas
of Oman sea suitable for raw material
handling by 250-400 thousand tons
bulk carriers
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• Rail way connection to National
network & Pakistan
• Best location for transit of goods to
Afghanistan & CIS countries
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• Natural gas pipe line
• Availability of highly experienced &
skilled managers, experts & operators in
the Country
• Tax exemption
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Target
10 MTPA, raw material, semis & finished
products
Mostly for improving balance of steel
production chain material and assurance
of 2025 National plan realization
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42. 2.5 MTPA, Pellet Production
From rather low grade Iron Ore
of small scale mines of the Country
Green field Project
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Small Scale Mines statistics
Description Quantities
Total Registered Mines 194 units
Total Active Mines 150 units
Mineable Reserve of All Mines 250 Million Tones
Mineable Reserve of Active Mines 150 Million Tones
Annual Iron Ore Production, 2013 32 Million Tones
Total Employees of Active Mines 8000 Persons
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Main Location of the Mines
Province No. of Active
Mines
Mineable Reserve
(Million Tons)
Khorasan 50 48
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Hormozgan 7 19
Kerman 18 19
Yazd 10 16
Fars 10 12
Central province 10 11
Zanjan 18 9
Isfahan 13 7
West Azarbaijan 5 5
Other provinces 9 4
The Country 150 150
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Investment can be realized either through
6 Investors
5 Investors of 5 PBC
1 Investor of FB & PP
Or
1 Investor
For the whole “Package” of 5 PBC and FB &PP
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53. 225000 TPA Ferro manganese
(3x75000 or 2x112500)
Green field project(s)
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General viability
• Assured local market based on 2025 National
Target plan of 55 MTPA crude steel
production
• Potential export market to MENA & Europe
Countries, because of so high Energy
Consumption & Considerable low Prices of
energy in the Country
• Existing production, marketing and export
experiences & expertize
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Demand Production Balance
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Ferroalloy Process
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Required Utilities
(For 1x75000 TPA, Fe Mn Plant)
Description Quantity
Electricity, Installed Power (MW) 30
Water (M3/Hr) 10
N.Gas (Nm3/Hr) 500
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Investment & Economic Indices
(For 1x75000 TPA, Fe Mn Plant)
Description Quantity
Investment, Accumulative (MEuro) 60
Internal Rate of Return(%) 32
Break-even point(%) 29
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Investment can be realized either by:
3 investors for establishment of 3x75000 TPA
production plants in 3 locations
Or by:
2 investors for establishment of 2x112500 TPA
tons production plants in 2 locations
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Thanks to
• All participants for their kind attention
• Metal expert for well arrangement of the
Conference
• Turkish participants in the Conference for
their hospitality
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