1 An overview of the Iranian aluminum industriesOpportunities for investment & developmentMohammad Aghajanlou, IMIDRO’s Mining Industries Manager10-11 December, IMIS2

Bauxite8 MTAlumina

3 MT Aluminum1.5 MT

2

Bauxite274 MT

Alumina115 MT Aluminum57 MT

Iran’s Vision, 2025

Extrusion45%

FRP42%

Wire & Rod11%

Aluminum Chain-2015

Supply, Demand, Rate of Consumption3

0/00%1/00%2/00%3/00%4/00%5/00%6/00%7/00%8/00%

40000450005000055000600006500070000750008000085000 عرضه

تقاضا درصد تغيير

0

500

1000

1500

2000

2500

-1000-800-600-400-200

0200400600800

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Influxقيمت بورس لندن

Shortage

Aluminum Price - LME4

1800200022002400260028003000

$1,350$1,400$1,450$1,500$1,550$1,600$1,650$1,700$1,750 Price $/T

LME Stocks KT

20% Increase 2016

Source: Wood Mackenzie , RBC Capital Markets estimates

Aluminum Production Cost5

Region 2015Middle East 1431

Africa 1519Canada 1567

Asia 1573CIS 1588

S&C America 1690Australia 1735Europe 1815

America 1815China 1907

CRU: منبع

GCC Production & Investment6

0

0/5

1

1/5

2

2/5

3

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Millio

n Tonn

es

IranQatarEmiratesBahrainOmanKSA

Country 2015 2025UAE 2600 5000

Bahrain 890 1500KSA 750 1480

Qatar 640 1000Oman 380 750

Production 5 MT 10 MTInvestment 40 B$ 60 B$

Iran 430 KT 1500 KT2.5 B$ 7.5 B$

Aluminum Consumption in Iran7

Forecast

0

200

400

600

800

1000

1200

1385 1386 1387 1388 1389 1390 1391 1392 1393 1394 1395 1396 1397 1398 1399 1400 1401 1402 1403 1404

Thousa

nds

صادرات واردات توليدShortage in Demand:

350 KT

Reference Consumption MTCRU 1.1

World Bank 1.512% Growth 1.055.5% Growth 0.6

8 Aluminum Consumption Forecast - 2025

IMIDRO: Your gateway to Iran's mines and mining industries

9Less than 3 US$ Cent per m3 of Nat gas and 1.8 US$ Cent per Kwh of powerMinimal Energy Costs230 US$ */month/well-experienced companies and contractors (* min monthly income)

Skilled Workers with Low Salary25% of Steel demand Middle EastLargest Market in Middle EastSuitable road and rail networksTransportOne of the largest networks of Nat gas pipelines in the world –22000 kmSuitable InfrastructureSpecial Economic ZonesTax FreeOne of the securest states in the Middle EastSecuritySteel: 300 US$ - Aluminum: 1500 US$ - Cement: 19 US$Minimal Production Costs per Ton

Competitiveness of Industries in Iran

IMIDRO is promoting foreign and private investment in the projects in Mining and Metal projects and has the following incentives for investors. To support the projects, IMIDRO is willing to participate as a partner for foreign investor, if required1- Long Term Contract for Low Energy Prices (Nat Gas)

2- Supporting Local Partners with Loan From “Iran Oil Fund”3- Required Permits from Authority Shortly

4- Allocate Land in Special Economic Zone (Tax Free)5- To Provide Infrastructure require in SEZ

6- IMIDRO Participation as Shareholder in J.V Company7- FIPPA Coverage ( Foreign Investment Promotion and Protection Act)

IMIDRO: Your gateway to Iran's mines and mining industries

10 Incentives for Foreign and Private Sector Investment

11

Iran’s Aluminum Investment Opportunities

Bauxite4 MT Alumina 1.6 MT Aluminum 800 KT

12 Iran’s Aluminum Requirements to Alumina & Bauxite

Bauxite8 MT 2025

2018

•Capacity 1600 KT to be increased to 3000 KT •Defined to compensate for part of Iran’s shortage in aluminum raw materials•Ore to be supplied from SBDT in Guinea Conakry or through long-term purchasing contract•Site allocated in IMIDRO’s Parsian Energy-Intensive Special Zone, next to huge gas reserves of South Pars fields

•Ready to form company with investors or arrange an international tender for EPC+F contract.

13 1- Persian Gulf Alumina

Bauxite ؛28/7

Energy ؛36/8

Raw Mat ؛20/3

Labour 9/4؛ Other 4/8؛

Alumina Site

Red Mud Storage

14 1- Persian Gulf Alumina

15 2- New Aluminum Smelter (SALCO-II)1- Supply – Demand gap that is forecasted to be more than 300 KT2- The presence of appropriate infrastructure3- Lower Natural Gas Price (Power Plant is required)4- Low salaries that leads to low production cost

This smelter (350-700KT) is currently ready to attract investment and to provide the required tender documents

16 3- Petroleum Coke Project

Actions taken so far

•Opening the pilot of project Sep.2015.•Allocating and purchasing a land (50 Hectare) from IMIDRO.

•Receiving Environmental License.•Receiving feed allocation license from Oil Ministry.

•conducting B.F.S By Axens.

As the economic indexes are desirable/eligible therefore the project is prepared for investing.

17 3- Petroleum Coke ProjectSelected Configuration proposed by AXENS: VRHDS Euro V

VB

CSO

VRHDS

DCU

HDT GO

HDT VGO

LPG sweet

Coke calciner

SRU Sulfur

Coke

VGO

Gasoil

LPG

Naphtha

Capacity Kt/y FEED 1500VR400CSO

Capacity Kt/y Product 172Coke 244VGO 715Gasoil 213Naphtha 2019C3C443Sulfur

Billet Casting Flat Rod IngotMaaden 50% 0% 50% 0% 0

EGA 46% 27% 12% 0% 15%Alba 36% 12% 13% 0% 39%Sohar 0% 0% 45% 15% 40%

Qatalum 53% 47% 0% 0% 0%

GCC Aluminum Products18

19 4- Flat Rolled Aluminum Project

1- Production: 45KT2- Consumption: 100KT 3- Forecast of 2025:

100155

220

050

100150200250

Today Tomorrow (5.5%) Tomorrow (12%)

KT

Hydro’s FRP profile

20 4- Flat Rolled Aluminum Project1- Capacity: 160 KT (90 KT Can Stock, 50 KT Foil, 20 KT HR Plate)2- Superior technical condition (Width, Equipment, Consistency , …)

21 5- Billet1- Capacity: 50 KT (Different Diameters)2- Superior technical condition (Length, Equipment, …)3- Beside of Jajarm Smelter4- It is ready to attract investment and to provide the required tender documents

IMIDRO: Your gateway to Iran's mines and mining industries

22For more information, please contact IMIDRO at the following address or visit our website:

10/12/2016

www.Imidro.gov.ir/ Invest you are warmly welcome to visit our Head office at:No.39, Sepahbod Qarani Ave. Tehran, Iran

Phone: +98-21-888 29 181Fax: +98-21-888 42854Email: info@Imidro.gov.ir THANK YOU!