iraj salehi iran's steel development facts & investment promoting projects
TRANSCRIPT
Istanbul Turkey, Sep. 2015
2nd Iran Steel ExportPerspectives Conference
Iran’s Steel Development Facts&
Investment Promoting Projects
Brief Introduction of Barsoo Engineering Co.
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Scope of ServicesFeasibility (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)4
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Fields of ActivityBase Metalsand Minerals ProcessingInfrastructuresand Off-Site FacilitiesPower Plants, Transmission and DistributionOil, Gas and Petrochemicals
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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Projects Distribution in Iran
Iran’s Steel Development Facts
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
According to National plan for development of steel production, based on target consumption per capita of 480 kg,
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
• 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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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DR- EAF Route
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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BF- BOF Route
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Steel development locations
Based on:• Serious issue of dry climate of the
Country and so low water resources• Access to international marine
transportation16
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Considered locations are:
• Beside big iron ore mines of the Country, preferably, for beneficiation & pelletizing
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
• Beside south coasts of the Country (Persian Gulf & Oman Sea) for direct reduction, steel making & hot rolling
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
For realization of National plan
Target capacities of steel production chain material have been defined
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Scrap DRI Pellet Lump Ore Fine ore Concentrate0
10
20
30
40
50
60
70
80
6.6
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74
37.2
74Target Capacities, 2025
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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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
• Pellet 3 MTPA
• Concentrate 9 MTPA
• Lump & fine Ore 3.5
MTPA
• Coking quality coal 1.5 MTPA
• Scrap 2.6 MTPA 24
Investment opportunities
in Iran Steel Industries
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Potential fields of investment
• Exploration & development of new iron ore mines • Iron ore beneficiation lines beside new
developed mines
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
• 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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Investment promoting projects
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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10 MTPA, Mega Steel
Green Field, project
To be developed by IMIDRO with foreign & local strong investors
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
• 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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Target
10 MTPA, raw material, semis & finished productsMostly for improving balance of steel production chain material and assurance of 2025 National plan realization
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Production route, concept, Capacities
& sequence of Investment
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
0.03 MTPA
Stacking , Blending and Reclaiming of raw materials
Stage 1 Stage 2
Ship & Wagon and Truck Unloading
Concentrate
Stacking & Reclaiming
Stage 1Stage 2Stage 3
Pelletizing Plant
6.3 MTPA
Bandar Abbas & Bandar Emam
Scarp
Bille
t cas
ting
One
line
High
spee
d
reba
r
Conti
nuou
s Rol
ling
Rebar0.5 MTPA
HBI 0 (1.7) [1.125] MTPA
Beneficiation1st Line
2.1 MTPA
Beneficiation2nd Line
2.1 MTPA
Beneficiation3rd line
2.1 MTPA
Pellet Stacking & Reclaiming
0.51 MTPABillet
0.56 MTPAHDRI / HBI / CDRI
0.52 MTPA
Direct ReductionMega Module
1.7 MTPA
Pellet0 (2.5) [2.5] MTPA
Pellet6.3 (3.8) [3.8] MTPA
Bandar Abbas
Concentrate0 (2.5) [5] MTPA
Imported Iron
Concentrate2.1 (2.1) [2.1] MTPABy Vessel
Local Iron Ore6.15 (9.2) [9.2] MTPA
Imported Iron Concentrate0(0.4) [2.9] MTPA
From Afghanistan By Rail
MeltingNo.1
Mega Steel Project
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Products(Final Stage)• Concentrate 5 MTPA• Pellet 3.8 MTPA• HBI 1.125 MTPA• Rebar 0.5 MTPA
Total 10 MTPA
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Required UtilitiesDescription Final
Stage
Electricity, Installed Power (MW) 200Water (M3/Hr) 1000N.Gas (Nm3/Hr) 92000
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Investment & Economic IndicesDescription Phase 1 Phase 2 Phase 3
Investment (MEuro) 950 1200 1500Internal Rate of Return)%( 18 22 21Break-even point)%( 44 35 40
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2.5 MTPA, Pellet ProductionFrom rather low grade Iron Ore of small scale mines of the CountryGreen field Project
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Small Scale Mines statisticsDescription Quantities
Total Registered Mines 194 unitsTotal Active Mines 150 unitsMineable Reserve of All Mines 250 Million TonesMineable Reserve of Active Mines 150 Million TonesAnnual Iron Ore Production, 2013 32 Million TonesTotal Employees of Active Mines 8000 Persons
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Main Location of the MinesProvince No. of Active
MinesMineable Reserve
(Million Tons)
Khorasan 50 48
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Hormozgan 7 19Kerman 18 19Yazd 10 16Fars 10 12Central province 10 11Zanjan 18 9Isfahan 13 7West Azarbaijan 5 5Other provinces 9 4The Country 150 150
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1
23
4 5
Final Beneficiation &
Pellet Plant (FB & PP)
• Small Mines1-55 Primary Beneficiation Centres (PBC)
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Khorasan Province
Two PBC
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Kerman Province
One PBC
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Isfahan Province
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One PBC
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
One PBC
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Hormozgan Province
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Required UtilitiesDescription PBC FB & PP Whole
package
Electricity, Installed Power
(MW)2 60 70
Water (m3/Hr) 1 175 180N.Gas (Nm3/Hr) - 1000
010000
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Investment & Economic IndicesDescription PBC FB & PP Whole
package
Investment (MEuro) 4 230 250Internal Rate of Return)%( 26.6 23.2 26Break-even point)%( 31 39 33
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Investment can be realized either through6 Investors5 Investors of 5 PBC1 Investor of FB & PPOr1 InvestorFor the whole “Package” of 5 PBC and FB &PP
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225000 TPA Ferro manganese(3x75000 or 2x112500)Green field project(s)
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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 Balance0
100
200
300
400
500 470
250220
Local Market Statistics
Ferro Manganese
55
* 1000 Tons
Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Ferroalloy Process
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Required Utilities(For 1x75000 TPA, Fe Mn Plant)
Description Quantity
Electricity, Installed Power (MW) 30Water (M3/Hr) 10N.Gas (Nm3/Hr) 500
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
Investment & Economic Indices(For 1x75000 TPA, Fe Mn Plant)
Description Quantity
Investment, Accumulative (MEuro) 60Internal Rate of Return)%( 32Break-even point)%( 29
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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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Istanbul Turkey, Sep. 20152nd Iran Steel Export Perspectives Conference
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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