Iran Steel Prespectives Iranian Ghadir Iron and Steel CO. (IGISco) Iran Steel Prespectives Istunbol, Turkey, Sep2015

Discussion Topics Iranian Ghadir Iron & Steel Co. Gol-e-Gohar Iron & Steel Development Co. 2014 World DRI Production by process 2014 World DRI Production by Region Major routes and quantities of DRI international tarde Iron Ore Concentrate production (Iran) Top DRI producing nations Iron Ore Pellet production (Iran) Direct Reduction Iron production (Iran) Use of DRI in Steelmaking Advantage of using DRI

Iranian Ghadir Iron & Steel Co. IGISCO History IGISCO was being founded at 2006 in Ardakan-Yazd DRI plant construction started since 2007 DRI production started since Jan. 2011 with 0.8 MTPY capacity Shareholders: Chadormalu Mining & Industrial Co. Iran Alloy Steel Co. Ghadir Investment Co. Ghadir Industries & Mines Development Co.

Iranian Ghadir Iron & Steel Co. IGISCO Some of main customers Khouzestan Steel Complex Mobarakeh Steel Complex Iran Alloy Steel Co. Iranian National Steel Industrial Group (INSIG) Others Steel Producers in Iran & Aboard (India, Korea, Turkey, China, etc)

Gol-e-Gohar Iron & Steel Development Co. GISDCO GISDCO was founded in May 2012 adjacent to Golgohar Iron ore mine located in Iran-Kerman province, Sirjan city with the aims of producing Sponge Iron, Thin slab & hot rolled coil to supply 3 MTPY high quality products for oil, gas, Petrochemical & Automotive applications.

Gol-e-Gohar Iron & Steel Development Co. GISDCO Shareholders No. Name 1 Gol-e-Gohar Industrial & Mining Co. 2 Gol-e-Gohar Development & Investment Co. 3 Omid Investment Management Group Co. 4 Chadormaloo Industrial & Mining Co. 5 Iranian Ghadir Iron & Steel Co. 6 Ghadir Investment Co. 7 Mines & Metals Development Investment Co. 8 Banking Found Cooperation

Gol-e-Gohar Iron & Steel Development Co. GISDCO Phase one: Establishment of one Mega module to produce 1.7 MTPY sponge iron Phase two: Establishment of 2nd Mega module of sponge iron with Production Capacity of 1.7 MTPY Establishment of steel making plant with Thin Slab caster machine and related Rolling shop to produce 3 MTPY of high quality HRC.

Gol-e-Gohar Iron & Steel Development Co. GISDCO First module DRI production started since March. 2015 and has possibility to export more than 1.5 MTPY DRI to Middle East & North of Africa and Other Countries.

2014 World DRI Production by Process IGISCO The world’s direct reduction plants have produced 74.6 million tons of DRI in 2014 Production fell slightly from 2013 quantity due to natural gas shortages in India, and operational disruptions in other DRI producing regions, and because of global downturns in steel market as well

2014 World DRI Production by Region (Mt) IGISCO India is the world’s largest producer of direct reduced iron but it should be noted that as the fuel/reductant a large quantity of the DRI made in India is produced in rotary kilns using coal; while Iran had the largest production capacity using natural gas

2014 Top DRI Producing Nations IGISCO Iran is the biggest DRI producer by using of natural gas as the reductant.

2014, Major Routes & quantities Of DRI International Trad IGISCO Russia and Trinidad continued to be the dominant sources of merchant product. they shipped over 5 million tons, nearly two-thirds of the total of all international trade. Oman and Malaysia also were major sources, each exporting over 750 thousand tons Libya, India and Venezuela all shipped greater than 200 thousand tons each. The biggest market by far was the United States, which received more than 2.25 million tons. This is due in part to the large volume of high quality steels, especially flat products, which is made in US EAFs.

Iron Ore Concentrate Production (2014) IGISCO Iron Ore Concentrate Production (2014) Row Description Location Capacity (mt/y) 1 Gol-e-Gohar Co. Kerman Province 9 2 Chadormaloo Co. Yazd Province 10.5 3 Markazi Co. 4 Sangan Co. Khorasan Province 1.5 Total 23

Iron Ore Concentrate Production plan (till 2025) IGISCO Iron Ore Concentrate Production plan (till 2025) Row Description Location Capacity (mt/y) 1 Gol-e-Gohar Co. Kerman Province 16 2 Chadormaloo Co. Yazd Province 12 3 Markazi Co. 5 4 Sangan Co. Khorasan Province 17.5 ME Holding Co. (Jalal Abad) 6 Gohar zamin Co. 7 ME Holding Co. (Sirjan) 8 Saba noor Co. Zanjan Province Total 63.5

Iron Ore Pellet Production (2014) IGISCO Iron Ore Pellet Production (2014) Row Description Location Capacity (mt/y) 1 Gol-e-Gohar Co. Kerman Province 5 2 Chadormaloo Co. Yazd Province (Ardekan) 3.4 3 Khouzestan Steel Complex Khouzestan Province 6.5 4 Mobarakeh Steel Complex Isfahan Province 7 Total 22.4

Iron Ore Pellet Production plan ( till 2025 ) IGISCO Iron Ore Pellet Production plan ( till 2025 ) Row Description Location Capacity (mt/y) 1 Mobarakeh Steel Complex Isfahan Province 7.5 2 Khouzestan Steel Complex Khouzestan Province 7 3 Khorasan Steel Complex Khorasan Province 2.5 4 Chadormaloo Co. Yazd Province (Ardekan) 5 ME Holding Co. Kerman Province 6 Markazi Co. Yazd Province Sangan Complex Plan 15 8 Gol-e-Gohar Co. 10 9 Gohar zamin Co. Madkoosh Plan Hormozgan Province 11 South Kaveh Complex 12 Qeshm Steel Development Co. Qeshm Island Total 81

DRI Production (2014) Direct Reduced Iron Production Total 17.50 Row IGISCO DRI Production (2014) Row Description Location Capacity (mt/y) 1 Mobarakeh Steel Complex Isfahan Province 7.6 2 Khouzestan Steel Complex Khouzestan Province 3.9 3 Khorasan Steel Complex Khorasan Province 1.6 4 South Kaveh Steel Complex Hormozgan Province 5 HOSCO 6 IGISCO Yazd Province 0.8 7 Arfa Iron & Steel Co. 8 Isfahan Ghaem Reduction Co. 0.4 Total 17.50

DRI Production plan ( till 2025 ) Direct Reduced Iron Production IGISCO DRI Production plan ( till 2025 ) Row Description Location Capacity (mt/y) 1 Mobarakeh Steel Complex Isfahan Province 8.8 2 8 projects of the provincial 8 Province in Iran 6.4 3 Khouzestan Steel Complex Khouzestan Province 3.9 4 Persian Gulf Saba Steel Co. Hormozgan Province 3.4 5 Gol-e-Gohar Iron & Steel Development Co. Kerman Province 6 HOSCO 3.2 7 Ardakan Steel Co. Yazd Province 2.7 8 Iranian Bootia Steel Co. 9 Torbat Heidarieh Steel Co. Khorasan Province 1.8 10 Khorasan Steel Complex 1.6 continued

DRI Production plan ( till 2025 ) Direct Reduced Iron Production IGISCO DRI Production plan ( till 2025 ) Row Description Location Capacity (mt/y) 11 South Kaveh Steel Complex Hormozgan Province 1.8 12 Chadormaloo Steel Co. Yazd Province (Ardekan) 1.5 13 IGISCO Yazd Province 0.9 14 Arfa Iron & Steel Co. 15 East Kaveh Complex ----- 16 Sirjan Jahan Foolad Co. Kerman Province 17 Bardsir Steel Co. 18 Isfahan Ghaem Reduction Co. Isfahan Province 0.4 19 Qeshm Steel Development Co. Qeshm Island 3.4 20 Others 0.6 Total 53.3

Use of DRI in Steelmaking IGISCO The DRI production has increased about 100 times, from approximately 0.8 million tonnes in the 1970s to approximately 74 million tonnes in 2012. Currently, DRI accounts for 16% of the raw material charged into EAFs. the demand for DRI has also been increasing in developed countries, and the amount of marine transportation of DRI reached 12.8 million tonnes in 2014. Changes in world DRI production and DRI shipments by year

Advantage of using DRI IGISCO Absence of tramp elements → increasing the quality of the scrap Purity, or the absence of non-metallic substance → productivity and energy consumption Expected range of some impurities in steel produced in EAF vs. %DRI of EAF charge

Advantage of using DRI IGISCO Uniform density and shape influences the number of backcharges, productivity, energy consumption and damage to furnace walls and refractories Uncomplicated use in the EAF-DRI lump, pellets or briquettes can be dumped cold into a steelmaking furnace along with scrap, using standard bucket charges, especially if it is charged after a hot liquid bath has been made by melting scrap Availability—unlike low residual scrap supply, which is limited, the supply of DR1 can be increased according to the demand Associated — compared to scrap, DRI contains an associated energy value in the form of combined carbon which increases furnace efficiency

Advantage of using DRI IGISCO Lower cost-lower capital, and operating costs, and lack of reliance on coke as a fuel source Blending abilities of DRI with scrap allow cheaper, low quality scrap grades to be used In the Blast Oxygen Furnace (BOF), DRI acts as a 'coolant', while in the Blast Furnace (BF) it is used as charge material to increase productivity and decrease coke consumption More environmentally friendly—avoids problems of hazardous contaminants such as lead or cadmium in EAF dusts.

Conclusion IGISCO In the past few decades the manufacture of steel via the electric arc furnace (EAF) route is becoming more and more popular compared to traditional production methods due to reasons such as efficiency, size, simplicity, etc. EAF operators are increasingly forced to consider the use of DRI to blend with lower quality scrap sources, which is relatively more abundant, and in that way to increase the iron units and decrease the residuals to produce a higher quality steel The explosion of new DRI projects all over the world shows the interest and the opportunity which have been shown by steel producers and iron ore suppliers alike Availiability, Increasing steel quality, furnace effiency, productivity, energy consumption, higher level of carbon content are the major of DRI advantage over the scarp

Thanks for your Kind Attentions IGISCO Thanks for your Kind Attentions Iranian Ghadir Iron and Steel CO.