IMIDRO’s Development in Last Four Years
In spite of facing financial
problems, the organization managed to carry out its plans in the new
era of its activities.
The Status of IMIDRO at the End of 10th Government
and Major Decisions Reached Under the 11th Government
At the beginning of Government of Prudence and Hope, IMIDRO was the heir of
47 plans. Of these, 12 projects were active and semi-active while 35
projects were inactive. It was an unpleasant situation for an
umbrella organization like IMIDRO, posing a threat to its reputation.
Following the appointment of Mohammad Reza Nematzadeh as Minister of
Industry, Mine and Trade, the responsibility of the leading organization of
the ministry was entrusted to Dr. Mehdi Karbassian.
IMIDRO was rooted in Ministry of Mines and Metals and is a part of the
Ministry of Heavy Industry, thus it bears weighty economic and social
First, Karbassian gave an order to develop
two strategies. The first strategy was
supposed to be drawn
up within three weeks to formulate a plan of the first year, whilst the
second one was a medium and long-term strategy presented for the coming two
years. A change in management style is clear indicating
a profound wisdom in decision-making. IMIDRO devised
its structure, accelerated its rules and
started a new chapter without making a change in its human capital.
This chapter made IMIDRO sufficiently stable and the scientific
decision-making based on technical and economic feasibility studies paved
the way for the development of the mine and mining industry sector, as well
as creating full-time employment.
First, the eight provincial steel projects were evaluated. A plan was
ceded completely to the private sector. A
new initiative was introduced to add to the methods of financing IMIDRO. By
attracting private sector participation, 7 other projects were undertaken as
joint ventures with private sector entrepreneurs. Accordingly, the crisis in
steel projects was handled and the plans were undertaken.
Alumina production from Nepheline Syenite project was a long-awaited project
(nearly three decades), halting repeatedly due to various reasons.
Finally, in December 2014, IMIDRO entered into a contract with Outotec for
the basic design of the plan. The infrastructure of the project has been
implemented and the project, with an annual production capacity of 200
thousand tons of alumina powder and 150 thousand tons of industrial salt,
will be launched in a coming future. On the other hand, Azar Shahr pilot
which was set for the trial production of Nepheline Syenite underwent a
change of use and will be utilized for the production of boehmite.
South Aluminum Plan has become operational since January 2015.The project
will be the largest aluminum producing unit in the country. Land, gas and
other infrastructure is provided and the project is undertaken by a Chinese
company. Accordingly, the first aluminum bars will be offered in the market.
The contract of the first phase of Jajarm Aluminum Plant, enjoying 37
thousand ton production capacity, is signed and the project has witnessed a
One of the major projects to be operational in this period was Mehdi Abad
Lead and Zinc Plan. Despite being one of the largest mines in the world, it
had been overlooked for a long time.
Thanks to accurate planning, the problems with the former investor were
solved and 7 industrialized countries tendered for the project. Finally, a
consortium managed to obtain the project.
The tender is considered as one of the most successful examples of overseas
contract in the country. The section allocated to barite in the mine is
launched in 2013 and is purchasing the product so far. The project will
produce 800 thousand tons of zinc, as well as 80 thousand tons of lead and
silver concentrates. Consequently, 1,000 job opportunities will be created.
Some other projects to become operational include Graphite Electrodes,
Sefidabeh Antimony, Hormoz and Hormozan plant, Zarshuran Gold, Khur and
Biabanak Potash, Zarand Tar Refinery, four iron ore and pellet projects in
Sangan, Energy Intensive Industrial Special Economic Zone, Kahnuj Titanium
Processing, Equipment of Gol-e Gohar Mines (4-5 – 6), Khomrud Iron Ore and
Plans Set out in 11th Government and Projects Ahead
IMIDRO is defined as the leading and most effective development organization
in the field of mine and mining industry. The organization has remarkably
increased the production capacity of the country in the past 15 years,
ceding a great number of its subsidiaries’ share in a privatization plan.
Some of these companies include Mobarakeh Steel Co., Khuzestan Steel Co.,
Iran Aluminum Co., Hormozal Aluminum Co., Al-Mahdi Aluminum Co., National
Iranian Copper Industries Co., and several companies producing lead, zinc,
cement and other products.
IMIDRO is defined as the leading and most effective development
organization in the field
of mine and mining industry.
IMIDRO has launched more than 110 projects valued at over $ 13 billion in
the last 15 years.
In spite of facing financial problems, the organization managed to carry out
its plans in the new era of its activities.
There has been some modification in the organizations’ financial plan in
2014 and by defining new financing methods, top priority was given to
domestic and foreign investment.
Subsequently, the first phase of Zarshuran Gold and Cerro-azul Cement
(Venezuela) plans were become operational in 2014-15.
Meanwhile, semi-stopped and halted plans were activated as a result of
adopting various financial methods.
In 2014, nine projects including Sangan Iron Ore
Concentrate (Khorasan Steel Complex), Sangan Pelletizing (Tose-e Melli ),
Savad Kouh Coal and Jalalabad Iron Ore Beneficiation were started and
entered into the operational phase.
IMIDRO’s measures in 2015 has led to inauguration of 6 projects such as
Zarand Tar Refinery, the second phase of Persian Gulf Mining and Metal
Industries Special Economic Zone, as well as executing the extraction and
sale contract of Gol-e-Gohar 5. During the same period, 15 new projects were
carried out due to effective measures and investments. Makran Steel, South
Aluminum, Sangan Concentrate
(Mobarakeh Steel) and the production of rare earth elements and strategic
metals are some examples of these projects.
In the current year, 28 projects will be inaugurated and become operational.
Likewise, the result of projects undertaken in 2013 was revealed helping
various provinces of Iran in achieving sustainable employment. Some of the
projects include: Sefidabeh Antimony (Sistan and Baluchestan), Sponge Iron
Project (Chaharmahal and Bakhtiari), Shadegan Sponge Iron Project
(Khuzestan), Neyriz Sponge Iron Project (Fars), the first phase of Jajarm
Aluminum (North Khorasan) and Kahnuj Titanium Pilot (Kerman).
By March 2018, the organization will inaugurate and carry out 12 projects,
while 5 projects will be put in to operation. In total, 73 projects will be
added to the country’s undertaken plans by March 2020.
The plans include Chabahar Aluminum, Alumina Production from Nepheline
Syenite, Magnesium Oxide production from Salt Lake (Qom), Jetty of Parsian
Energy Intensive Industrial Special Economic Zone, as well as Parvadeh 4
Launching the projects in “Prudence and Hope” government
In 2016, over $1420 million investment will be made to launch and undertake
28 projects. In the following year, an investment of $ 1,000 million will
pave the way for the operation of 12 projects, increasing the production
capacity of the country.
In the current year, 28 projects will be inaugurated and become
operational. Likewise, the result of projects undertaken in 2013
was revealed helping various provinces of Iran in achieving
In addition, enjoying $4390 million investment, 17 projects will be launched
in 2018 and 8 projects, with $ 3,300 million investment, will be completed
In other words, 73 projects ($ 11 billion investment) are to be inaugurated
and put into operation in 2014-20, creating 8,500 direct and 12,000 indirect
job opportunities. Of these, 20 projects are undertaken before 2014 and 53
plans are launched afterward, establishing IMIDRO’s position as a
development-oriented organization in the field of mines and mining industry
all over the world.
If foreign investors intend to participate in the projects, the organization
will offer new projects.
Iran is rich in great underground reserves and energy. The country’s access
to high seas and regional market opens up the opportunity of developing
major economic plans.
Due to the drawn up plans, energy intensive industrial special economic
zones, Lamerd and Parsian, on the southern coast of the country, will
allocate land to the ones interested in investment. The area will turn into
a major hub for the production of steel, cement, aluminum and petrochemical
products in the region.
One Billion Dollars Investment in 10 Projects by 2015
Since 2013, IMIDRO made a great attempt to finalize the projects having
optimum condition. Thus expert and operational teams were formed and the
plan was realized thanks to the attendance of the senior managers.
Subsequently, the organization launched 10 projects, valued at one billion
dollars, by September 16.
These projects include Zarshuran Gold, Venezuela Cement, Al-Mahdi Rodding,
Petroleum Coke Pilot, Second Phase of Jetty Project-P.G.S.E.Z, Khur and
Biabanak Potash, Zarand Tar Refinery, Sarcheshmeh Concentration Plan (Phase
2), Songoon Concentration Plan (Phase 2), as well as 13 power transmission
and road construction projects as the infrastructure development plans in
the area of mineral regions in Iran.
Development of Financing Methods in IMIDRO
In new era of development in the mine and mining industry sector associated
with the beginning of the Eleventh Government, IMIDRO faced with financial
challenges. A part of the organization’s assets was ceded not only in a
privatization project, but also as a compensation of the government’s debt
to non-specialized companies. This measure has resulted in a decrease in the
income of the organization and caused some policy making problems. Some of
the shareholders were seeking maximum interest and were not familiar with
the concept of development and investment in this area.
Following numerous changes in IMIDRO’s senior management position in the
Tenth Government, the subsequent government came to the conclusion to
appoint a person of great knowledge in financing, sustainable development,
as well as international relation issues . Consequently, Mehdi Karbassian
was assigned and the term of stability began in IMIDRO.
IMIDRO has adopted new financial methods and made some changes in the
strategies and quality policies.
In his new approaches, Karbassian clearly addressed the officials to
increase the income and resources of the organization, decrease the costs
and expenses and finally devote their attentions to the participation in the
Some of the new financing methods are as follows:
Cooperation with committed and expert firms in private sector so that a
percentage of stocks will be allocated to the development of partnership
with the sector. As a result, a significant percentage of the
construction costs of the projects will be transferred to private
investors. Instead, the plans will be undertaken and the specialized
private sector will also obtain benefits. The projects include 7
Provincial Steel plans such as Neyriz Steel, Shadegan Steel, Mianeh
Steel, Sepid Dasht Steel and others.
Selling government bonds in order to implement a great number of
Attracting foreign investors and their participation in the plans. One
of the best procedures was forming Mehdi Abad Consortium. The projects
such as South Aluminum, Green Coke and Makran Steel will be set up
through foreign investors
Arranging for foreign loans as well as attracting the participation of
Iranian investors living abroad are other financial methods under