2nd Iran Steel Export
Perspectives Conference
Iran’s Steel Development Facts
&
Investment Promoting Projects
Istanbul Turkey, Sep. 2015
Brief Introduction of Barsoo Engineering Co.
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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Iran’s Steel Development Facts
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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DR- EAF Route
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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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BF- BOF Route
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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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Target Capacities, 2025
80
74
74
70
60
51
50
40
30
20
10
6.6
3
7.2
0
Scrap
DRI
Pellet
Lump Ore
Fine ore
Concentrate
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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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• Pellet
3 MTPA
• Concentrate
9 MTPA
• Lump & fine Ore
3.5 MTPA
• Coking quality coal 1.5 MTPA
• Scrap
2.6 MTPA
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Investment opportunities
in Iran Steel Industries
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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Investment promoting projects
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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10 MTPA, Mega Steel
Green Field, project
To be developed by IMIDRO with foreign & local strong
investors
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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Production route, concept, Capacities
& sequence of Investment
Local Iron Ore
6.15 (9.2) [9.2] MTPA
Ship & Wagon and
Truck Unloading
Imported Iron
Concentrate
Imported Iron Concentrate
0(0.4) [2.9] MTPA
From Afghanistan By Rail
2.1 (2.1) [2.1] MTPA
By Vessel
Stage 2
Beneficiation
3rd line
2.1 MTPA
Pellet
0 (2.5) [2.5] MTPA
Beneficiation
2nd Line
2.1 MTPA
Direct Reduction
Mega Module
1.7 MTPA
Beneficiation
1st Line
2.1 MTPA
Concentrate
0.03 MTPA
No.1
0.52 MTPA
2nd Iran Steel Export Perspectives Conference
Billet casting
One line
High speed
0.51 MTPA
Billet
rebar
Continuous Rolling
6.3 MTPA
0 (1.7) [1.125] MTPA
Melting
Stacking & Reclaiming
Pelletizing Plant
HBI
0.56 MTPA
HDRI / HBI / CDRI
Scarp
0 (2.5) [5] MTPA
Bandar Abbas &
Bandar Emam
Stage 1
Concentrate
Stage 1
Stage 2
Stage 3
6.3 (3.8) [3.8] MTPA
Stacking & Reclaiming
Stacking , Blending and Reclaiming
of raw materials
Bandar
Abbas
Pellet
Pellet
Rebar
0.5 MTPA
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Products
(Final Stage)
• Concentrate
• Pellet
• HBI
• Rebar
Total
5 MTPA
3.8 MTPA
1.125 MTPA
0.5 MTPA
10 MTPA
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Required Utilities
Description
Final
Stage
Electricity, Installed Power (MW)
200
Water (M3/Hr)
1000
N.Gas (Nm3/Hr)
92000
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Investment & Economic Indices
Description
Investment (MEuro)
Internal Rate of Return(%)
Break-even point(%)
Phase 1
Phase 2
Phase 3
950
1200
1500
18
22
21
44
35
40
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2.5 MTPA, Pellet Production
From rather low grade Iron Ore
of small scale mines of the Country
Green field Project
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
Hormozgan
7
19
Kerman
18
19
Yazd
10
16
Fars
10
12
Central province
10
11
Zanjan
18
9
Isfahan
13
7
West Azarbaijan
Other provinces
5
9
5
4
150
150
The Country
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1
2
Final
Beneficiation &
Pellet Plant
(FB & PP)
3
4
5
• Small Mines
1-5
5 Primary Beneficiation
Centres (PBC)
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Khorasan Province
Two PBC
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Kerman Province
One PBC
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Isfahan Province
One PBC
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Hormozgan Province
One PBC
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Required Utilities
Description
PBC
FB & PP
Whole
package
2
60
70
Water (m3/Hr)
1
175
180
N.Gas (Nm3/Hr)
-
10000
10000
Electricity, Installed Power
(MW)
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Investment & Economic Indices
Description
Investment (MEuro)
Internal Rate of Return(%)
Break-even point(%)
PBC
FB & PP
Whole
package
4
230
250
26.6
23.2
26
31
39
33
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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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225000 TPA Ferro manganese
(3x75000 or 2x112500)
Green field project(s)
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
Investment, Accumulative (MEuro)
Internal Rate of Return(%)
Break-even point(%)
Quantity
60
32
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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