EU, China to finance $9 billion mining projects in Iran

Business Materials 8 February 2016 18:39 (UTC +04:00)

Baku, Azerbaijan, Feb. 8

By Khalid Kazimov - Trend:

Iranian official says three European states as well as China to finance $9.1 billion mining projects in the country.

Chinese have prepared a $4.5-billion finance package, while Italy and France wants to invest about 4.5 billion euro in Iran's mines, Iranian Deputy Trade Minister Mehdi Karbasian told Mehr News Agency on Feb.8.

He also said that German and Japanese companies also have demonstrated willingness to finance Iran's mining projects.

Karbasian added that Iran has planned to produce 55 million tons of steel per year, of which 14 million tons would be exported by 2021.

Iranian official said that exporting 3 million tons is steel is projected for current year, started on March 21, 2015.

During the visit of President Hassan Rouhani Italy in Jan.25, Danieli Group signed deals worth close to $6.2 billion with the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) for cooperation in the steel and aluminum sectors.

The agreements signed by Danieli's CEO Gianpietro Benedetti and the head of IMIDRO, Mehdi Karbasian, include a joint venture and the supply high-tech machinery and plants to a number of Iranian steel and aluminum companies, valued at $4 billion, IMIDRO reported on its website.

IMIDRO also signed an aluminum cooperation deal with the French Fives Group during the Iranian mission's stay in Paris on Jan.27.

Signed by the giant engineering company's chairman of the executive board, Frederic Sanchez, and head of IMIDRO, the agreement entails the establishment of a joint copper anode production company through an engineering, procurement, construction and finance contract.

Anode, primarily made from petroleum coke, is one of the main raw materials required for aluminum ingot production and its manufacture usually accounts for nearly 30% of production costs, Financial Tribune reported.

The anode production plant, with a production capacity of 450,000 tons per year, requires a close to $400 million investment and is IMIDRO's largest initiative ever taken to expand Iran's aluminum production capability.