1. Iron Ore self-sufficiency as an advantage of Iranian Steel Exporters
Keyvan Jafari Tehrani
Member of the Board & Head of Int’l Affairs

2. Contents 1
Iran Iron Ore Industry Future of Iron Ore Mining and Steel Industry in Iran Iron Ore to Steel Value Chain Strategic Steel Export Plan of Iran Billet vs. Scrap Competition Conclusion 2 3 4 5 6

3. Iran Iron Ore Industry

4. Iron Ore Mines, Grade and Reserve
Private (188) and Government Mines
(11): Totally 199
Total Iron Ore Decisive Reserves:
4 Billion Tons
Type of Iron Ore: (approx.):
60% Magnetite
40% Hematite
Average Fe content (Iran):
52 %
Average Fe content (World):
42%
Figure 1: Iran Iron Ore Reserve

5. Iran Iron Ore Reserve & Grade
Tonnage (Thousand t)
Grade (Fe %)
Figure 2: Iran Iron Ore Reserve and Grade

6. Figure 3: Iran Iron Ore Exploration
Average Depth of Drilling:
< 20 m
Total Mining Drilling in Iran:
3.2 Million Meters
% of Explored Area:
< 10 %
Estimated Required Investment:
US 20 Billion in 4 years
Figure 3: Iran Iron Ore Exploration

7. Iran Iron Ore Production/Export
Figure 4: Iran Iron Ore Production
(Source: USGS, Feb-2016)
Figure 5: Iran Iron Ore Export
(Source: USGS, Feb-2016)

8. Figure 6: The Impact of Iron Ore Price on Iran Iron Ore Production
Iran Iron Ore Price
Iron Ore Production (Mt)
Iron Ore Price ($/t)
Figure 6: The Impact of Iron Ore Price on Iran Iron Ore Production

9. Iran Iron Ore Production Forecast
1991
1992
1993
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2023
2020
2021
2022
2024
2025
Growth rate: 11% Mt
Growth rate: 6 %
Growth rate: 4 %
Figure 7: Iran Iron Ore Production Forecast

10. Figure 8: Global Iron Ore Demand

11. Future of Iranian Iron Ore Mining & Steel

12. Global Crude Steel Production
15 year of forecast
Figure 9: Global Crude Steel Production,

13. Iran Crude Steel Production
Figure 10: Iran Steel Production
(Source: World Steel Association, Feb- 2016)

14. Iran Steel Consumption
Figure 11: Iran Steel Overview (Mt)
(Source: World Steel Association, Feb- 2016)

15. Iran Steel Export/Import
Figure 12: Iran Steel Export
Figure 13: Iran Steel Import
(Source: World Steel Association, Feb-2016)

16. Iran Forecast of Steel Growth
Figure 14: Iran Forecast of Steel Growth

17. Future of Iron Ore Mining and Steel
Figure 15: Iran Steel Comprehensive Plan

18. Location of Iron Ore Mines & Steel Mills
Legend
Crude Steel Mill
Pig Iron Unit
Cast Iron Unit
Pellets Unit
Concentrate Unit
Iron Ore Mine
Figure 16: Location of
Iron Ore Mines &
Steel Mills

19. New Steel Mills Under Construction
Chabahar Free Zone: 10 Mt
Persian Gulf Special Zone in B. Abbas: 10 Mt
North East of Iran in Khorasan Provinces: 19.6 Mt
Center of Iran in Kerman Province: 9.3 Mt
Center of Iran in Yazd Province: 3.2 Mt
Plan for Iron Ore Import in : Only 43 Mt

20. Iron Ore to Steel Value Chain

21. Steel Value Chain
Figure 17: Decrement Added Value in Steel Value Chain
(Source: World Steel Association, Mc Kinsy Steel Demand Model)

22. Critical Success Facts in Steel Business
Figure 18: Critical Success Facts for Distribution Companies and Actions Areas

23. Billet vs. Scrap Competition

24. Figure 19:Scrap as a share of feed, 2002 -2012

25. Steel Production by Scrap Consumption
Figure 20:World Steel Production and Scrap Consumption from 2005 to 2014
(Million Metric Tons)

26. Crude Steel vs. Scrap Consumption
Figure 21: Crude Steel vs. Scrap Consumption Growth,

27. Figure 22: Scrap Scenarios, 1950 - 2050

28. Share of Scrap in Steel Production Costs
Even in iron ore-consuming blast furnaces, scrap remains an important additive and can make up 10-20% of the total raw material mix
Iron
Ore
Figure 23: Scrap as a Percentage of Steel
Production Costs, 2015
(Source: LME, 2015)

29. Steel Export Strategy
What is the company performance in the market and what actions to be taken to shape its future?
What is the current competitive scenario?
What is the basis of the competition in the product-market served?

30. Steel Export Strategy
What are the critical success factor for business in region?
Can it substitute volume business with project business and how will this impact cross selling?
What should be the road-map to successes?
What kind of business are required to meet the strategy?

31. Conclusion:
Iran is a major country in iron ore reserve in MENA region.
Cost of logistic in Iran is one of the most bottleneck issues.
Importing iron ore/concentrate will increase the cost of production in steel value chain and make it less profitable to export.
As a proportion of costs, movements in scrap prices can have a major impact on steel mill’s profitability.

32. Thank You Web site: www.iropex.ir
Chador Malu Pellets Plant & Billet Mill
Web site:
Gol-e-Gohar Iron Ore Mine