TEHRAN- The bill on establishment of eight new free trade-industrial zones and 12 new free economic zones will be discussed by Iranian parliament (Majlis)’s economic committee within the next two weeks, Morteza Bank, the secretary of Free Zones High Council, announced. It is while about one and half year has passed since the government has submitted this bill to Majlis, […]
The post Majlis economic committee to study creating new free zones appeared first on IRAN BUSINESS TIME.
The law on implementation of the general policies of the Article 44 of Iran’s Constitution on privatizing state-owned companies was declared in 2006 in a bid to downsize the government and promote the private sector’s role in the national economy. The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 […]
The post Factors slowing down privatization in Iran appeared first on IRAN BUSINESS TIME.
TEHRAN- Thanks to decrease in domestic demand, Iranian rebar exports will increase in 2018, Platts quoted Iranian industry sources. The country’s domestic production capacity is far outstripping its consumption while domestic rebar demand has decreased. The overcapacity has led into competition between steel mills i.e. Iranian rebar offers have been competitive. Accordingly, export volumes could surge in the 2018 calendar […]
The post Iran to increase rebar exports in 2018 appeared first on IRAN BUSINESS TIME.
TEHRAN – China’s Sinopec Engineering (Group) Co., signed a deal with National Iranian Oil Engineering and Construction Company (NIOEC) to contribute to engineering, procurement and construction of phase II of Abadan refinery upgrading project in Iran. “The group will pursue approximately 6.86 billion yuan ($1.05 billion) of the total contract value”, Nikkei Asian Review cited the company as stating on […]
The post Sinopec Engineering inks $1.05b refinery upgrading deal in Iran appeared first on IRAN BUSINESS TIME.
TEHRAN- Iranian First Vice-President Es’haq Jahangiri inaugurated major industrial projects in the northeastern province of Khorasan Razavi on Thursday, Shata news agency reported. The senior official opened Sangan Pelletizing Plant in Khaf region, with the capacity of producing five million tons of conglomerates per annum. Some 12 trillion rilas (about $285.5 million) of investments was made to implement this project, […]
The post First VP inaugurates major industrial projects appeared first on IRAN BUSINESS TIME.
In late June, the Iranian government shut down the online auto import registration system saying that the import regulations are being revised. Although the officials in the Industry Ministry mentioned managing auto import market and preventing from exit of foreign currency from the country as some reasons for stopping this system, taking this action in a non-expert and highly challenging […]
The post Government not determined on new car-import regulations appeared first on IRAN BUSINESS TIME.
TEHRAN- The Central Bank of Iran (CBI) announced that the inflation rate for the 12-month period ended on the last day of the ninth Iranian calendar month Azar (December 21) compared to the same period in the previous year hit 10 percent, IRIB news reported on Tuesday. It is while the Statistical Center of Iran had previously put the inflation […]
The post Inflation rate stands at 10% in Iran: CBI appeared first on IRAN BUSINESS TIME.
Tehran (ISNA) – Iran is ready to contribute to any effort towards an immediate ceasefire, humanitarian assistance and intra-Yemeni dialogue, Iranian foreign minister Mohammad Javad Zarif announced.
“Ending the nightmare that is the war in Yemen is our collective responsibility. We welcome the growing recognition that there is no military solution, and we are ready to contribute to any effort towards an immediate ceasefire, humanitarian assistance and intra-Yemeni dialogue,” Zarif said in a post on his Twitter account on Wednesday.
End Item
Tehran (ISNA) – Iran and Lithuania will expand their bilateral cooperation, the accredited ambassador of Lithuania to Tehran said.
The Lithuanian Ambassador also invited the Iranian foreign minister and his delegation to travel to Lithuania to continue the negotiations begun to develop relations and cooperation between the two countries.
The Lithuania’s Honorary Consul in Tehran, for its part, stressed that Iran and Lithuania will establish a direct flight line between the two countries. He also hoped that the twinning of the Iranian city of Mashhad and the Lithuanian city of Vilnius will be completed soon.
"There are a lot of little-known or unknown capabilities between the two countries, but we hope by opening the Lithuanian embassy in Iran and the Iranian embassy in Lithuania can use the existing capabilities," he said.
End Item
Tehran (ISNA) – The 10th joint commission was held on Wednesday as the US President Donald Trump’s decision and insistence on withdrawal from the nuclear deal is still threatening it.
The Joint Commission of the Joint Comprehensive Plan of Action (JCPOA) kicked off between Iran and the P5+1 group (USA, Russia, China, France, UK and Germany) today at the Palais Coburg Hotel in Vienna.
Iranian deputy foreign minister for legal and international affairs Abbas Araghchi and the secretary general of European External Action Service (EEAS), Helga Schmid chaired the meeting, holding in the presence of political directors and deputy foreign ministers of theses six countries.
Araghtchi took part Tuesday at the meeting of the work group of the removing sanctions at the level of high experts of Iran and P5 + 1.
He also held separate meetings with his French, German, Chinese and Russian counterparts.
The Iranian deputy foreign minister also participated in a multilateral meeting with the deputy foreign ministers of the three European countries of P5 + 1 (Germany, United Kingdom and France) in the presence of Helga Schmid.
End Item
Tehran (ISNA) - The Islamic Republic of Iran stands ready to cooperate with each one of the Muslim countries to defend the holy Quds without any reservation or pre-condition, Iranian President Hassan Rouhani stressed during the Organization of Islamic Cooperation summit that convened in Istanbul Wednesday.
Leaders of the Muslim world are attending the OIC on Wednesday in Istanbul, looking to rally for a coordinated response to US recognition of Jerusalem as Israel’s capital.
Here is the full text of Mr. Rouhani’s speech at the summit:
In the Name of God, the Most Compassionate, the Most Merciful
The Almighty God is exalted as he took His Servant by night from Masjid al-Haram to Masjid al-Aqsa, whose surroundings are blessed, to show him of our signs. Indeed, the Almighty God hears and sees.
(Verse One of al-Asra Chapter, Holy Quran)
Your Excellency Mr. Erdogan, the Honorable President of Turkey
Honorable Heads of Muslim State
Distinguished Heads of Participating Delegates
Assalamu Alaykum wa Rahmatullahi wa Barakatuhu
I would like to begin with appreciating the efforts of my dear brother His Excellency Rajab Teyyeb Erdogan for organizing this very significant meeting. We have gathered here to exchange views on the appalling tragedy and the old wound of the Muslim Ummah in the last one hundred years which began with the Balfour conspiracy and is now experiencing a new chapter with the incorrect and unlawful promise of the US President to move the American Embassy to the holy city of Quds.
Today we speak about Quds which is the first Qiblah of Muslims and the third holiest Islamic shrine and is used to recognize the identity and credibility of Palestine. The uprising of the tireless people of Palestine during the past several days against the United States and the Zionist occupiers once again demonstrated that Palestinians would not pin their hope on empty plans and instead are insisting on their righteous demands.
The Muslim states fortunately were quick in reacting to the approach of the US administration towards the Quds City. And the formation of this summit indicates the correct interpretation by Muslims of the incorrect act of the US President.
Distinguished brothers and sisters
Through every possible means, we should join hands to prevent the enforcement of such an unintelligent US act. However, we should also investigate what elements and reasons emboldened the US President to take such a rude and sacrilegious decision.
I believe that other than any other reason, the efforts of some countries to establish relations and even consultation and coordination with the Zionist regime have incited such a decision.
Instead of countering the threats of the Zionists, some countries in our region are aligned with the US and Zionists to prescribe the fate of Palestine—If such prescriptions are taken, the Zionists would permanently dominate the Palestinians.
Today it is no secret that the biggest enemy of the Jews is not the Muslims and Arabs but the dangerous project of Zionism. We Muslims, Christians and the Jews are the historical owners of this region. The Zionists however are stranger here and have imposed themselves on this region. The Zionists have in fact planted the seeds of terrorism and violence in this region since the beginning years of the past century.
During the past several decades, the Zionist regime has been responsible for the killing and displacement of Palestinians while disrespecting Islamic sanctity in Palestine. In committing all such crimes and murders, the United States has been supporting the Zionists with its veto power in the Security Council of the United Nations and has spared no effort in supplying all kinds of destructive weapons to the Zionist regime. Unfortunately, the United States was chosen as an arbitrator for years in negotiations. Or they sought the support of the US and relied on it for mediation.
The United States has never been an honest mediator. And it will never be. The recent act by the US administration made it clear for the people who wished a positive role by the US in resolving the issue of Palestine that the US is only seeking to secure the maximum interests of the Zionists and consider no respect for the legitimate demands of Palestinians.
Mr. Chair
In order to counter such oppressive and low-minded measures, it is necessary to take lessons from the past. Therefore, I take the opportunity to propose the following actions:
1- It is necessary for this summit to strongly condemn the recent decision by the US administration to recognize al-Quds as the capital of the Zionist regime and move its embassy to the holy Quds.
2- Under the present circumstances, it is necessary for the Muslim world to get united against the Zionist regime. If we suffer from differences amongst ourselves over some issues, we should not be divided on defending the holy Quds and the Palestinian cause. All the problems of the Muslim world can be resolved through dialogue. It is only through Islamic unity that we can better support the rights of the Islamic Ummah and the holy Quds.
3- The US administration should be aware of the reality that the world of Islam does not remain indifferent towards the fate of Palestine and the holy Quds. And that ridiculing international approvals and ideas of nearly all the international community on the issue of Palestine would have political repercussions and costs.
4- It is imperative on the Muslim states to harmonize their protest to the recent US decision in their talks with America’s partners especially European countries and emphasize on the necessity to stand against such a decision.
5- The issue of Palestine should once again be placed top on the agenda of the Muslim world. With the defeat of Daesh in Iraq and Syria and the necessity of continuing the fight against other terrorist groups, we should not forget the dangers of the Zionist regime including its nuclear warheads which is a threat to the whole world.
6- The United Nations and particularly the Security Council and its General Assembly can and should play a key role under such circumstances to express their opposition to the recent US decision. It is necessary that diplomatic missions of Muslim states in the United Nations actively participate in the discussions.
7- The movements of the Zionist regime should be constantly monitored and the OIC should hold sessions wherever appropriate to take necessary decisions at the ministerial or heads of state level.
In conclusion, the Islamic Republic of Iran stands ready to cooperate with each one of the Muslim countries to defend the holy Quds without any reservation or pre-condition.
Thank you
End Item
Tehran (ISNA) – Iran’s export to Malaysia during the last eight months (March 21-November 20) is five times higher than last year’s same period.
According to the latest statistics of the Islamic Republic of Iran Customs Administration, the country exported more than 434 thousand tons of different types of commodities to Malaysia during the last eight months.
The value of the goods exported by Iran to the Southeast Asian country during the period is more than $160 million.
However, the volume of export from Iran to Malaysia last year was 101 thousand tons of goods which shows a rise of 327 percent in volume level this year. The value also experienced a growth of 430 percent, as the value of goods exported by Iran during the eight months of last year was $30 million.
Taking these figures into account, the export from Iran to Malaysia is five times higher than last year.
End Item
Tehran (ISNA) – Iranian foreign minister Mohammad Javad Zarif will travel to Baku in near future.
The press service of Iranian embassy in Azerbaijan Republic rejected news of Iranian President Hassan Rouhani’s visit to Baku and announced Mr. Zarif will soon travel to the country.
Some media quoting Iranian ambassador reported that Mr. Rouhani will travel to Baku in near future.
End Item
Tegran (ISNA) - Executives from aircraft manufacturers Airbus and Boeing are due to arrive in Tehran next week to negotiate and decide on the financing of Iran’s newly-purchased passenger airplanes.
According to Massoumeh Asgharzadeh, the head of Iran Air public relations office, the airline has reached promising conclusions regarding the financiers of the plane deals, Financial Tribune reported.
“Our preference is to use domestic financial resources, but we also have the option to finance the purchases through Airbus and Boeing themselves,” she said.
Asgharzadeh said the result of negotiations will soon be publicized. Iran Air has ordered 100 airplanes from Airbus and 80 from Boeing.
The Iranian flag carrier has received 3 Airbus so far.
End Item
Tehran (ISNA) – The defense ministers of Iran and Turkey hold a phone conversation on Tuesday, discussing the latest development in the region.
During the phone conversation, Iran’s defense minister Brigadier General Amir Hatami said that some regional and international countries have tried in recent years to separate Iran from Turkey but their plan has failed.
General Hatami further pointed to the development of defense cooperation between Iran and Turkey, stressing, “We welcome the expansion of bilateral collaborations in military, defense industries and the exchange of educational and research experience to enhance the level of defensive capabilities”.
“The destruction of Daesh was an example of regional cooperation and the result of the interaction between the countries of Iran, Turkey and Russia that caused the frustration of the Zionists and the United States,” he stressed.
Bottom of Form
“The US President Donald Trump’s decision to recognize al-Quds as the capital of Zionist regime came after the defeat of the United States in Iraq and Syria, their failure to declare Iraqi Kurdistan independent, and their dismay after the compulsory resignation of the prime minister of the Lebanon” General Hatami said.
“The US decision to relocate its embassy to al-Quds is an irresponsible policy to reinforce the occupying approach of the Zionist regime. We do believe that this move is the result of differences in the Muslim Ummah and the compromise of some Arab states with the Israeli regime,” he added.
Referring to the crimes being committed in Yemen, the Iranian minister called the brutal murder of the Yemeni people a full-fledged humanitarian crisis, saying that the international community and Muslim countries should be more concerned about the end of bombardments and the siege of the oppressed Yemeni people.
For his part, Turkish defense minister Nurettin Canikli pointed to the commonalities of the two countries, noting that the recent developments in the region highlighted the need for cooperation between Iran and Turkey.
He also noted that no power can affect the friendship and fraternity between Tehran and Ankara.
Canikli condemned Trump’s decision to declare al-Quds as the capital of the Israeli regime as a great mistake, adding that the decision is not accepted by any Muslim in the world.
At the end of the conversation, Canikli accepted the invitation of his Iranian counterpart to take a trip to Iran and emphasized the importance of defence cooperation between the two countries and also continuation of bilateral interactions within the framework of Astana Talks on Syria.
End Item
On December 14, 2017, Posted by admin , In News, By invest in iran,Invest in Iran's Solar Energy Projects , With No Comments
A Bulgarian company signed a Memorandum of Understanding (MoU) with Iran to develop solar photovoltaic infrastructure in the Iranian central city of Jahrom, Xinhua reported.
“The first investment agreement in the Jahrom Special Economic Zone has been signed with Solar & Benefit Corporation (Bulgarian renewable power developer) to build a photovoltaic power plant,” said Alireza Sahraeian, the governor of Jahrom.
The official did not specify the plant’s capacity or the value of the investment, but said the deal is to meet the electricity demand of a population of 230,000 in Jahrom.
“The agreement is to provide part of the country’s power needs and to boost supply stability in the region through renewable energy resources,” he said.
Jahrom is approximately 200 km off the Persian Gulf coast and 800 km south of the capital Tehran.
Solar & Benefit will be compensated for 20 years at a price of 15.2 euro cents per kilowatt hour. The Bulgarian enterprise operates through its local company Solar & Benefit Persia.
The Sofia-based company plans to develop power projects in Iran with a total output capacity of 400 megawatts in collaboration with Grass Group, a German solar energy EPC contractor.
—
Related
Head of Iran’s Industrial Development and Revolution Organization (IDRO) Mansour Moazami made the remarks on the sidelines of a ceremony held to celebrate a contract between Renault, Industrial Development and Renovation Organization of Iran (IDRO) and Partov Negin Naseh Holding Company.
‘We pursue promotion of domestically made products through joint venture with international brands,’ the official noted.
He said: ‘Up to 66 million Euro will be invested at the first phase of the project.’
Meanwhile, Executive Vice President and Chief Competitive Officer in Renault Group Thierry Bolloré called the contract with Industrial Development and Renovation Organization of Iran (IDRO) and Partov Negin Naseh a remarkable deal in one of the most strategic countries of the world .
Based on the contract, Renault will sponsor the project in all phases, including investment, technology transfer, engineering and export, Bolloré added.
Executive Vice President and Chief Competitive Officer in Renault Group Thierry Bolloré elaborated the details of contract in a ceremony held to celebrate the event and said: ‘The full industry value chain will be transferred to Iran.’
Based on the contract, Renault will sponsor the project in all phases, including investment, technology transfer, engineering and export, Bollore added.
The official hailed Iran’s valuable human resources, infrastructure, enriched culture and geopolitics.
He pointed to continued presence of Renault in Iran since 2004 and noted that inking the deal proves Renault commitment to attend Iran’s auto industry for long-term.
Renault would develop cooperation with its old partners, including Iran Khodro and Saipa, Bolloré noted.
Renault and IDRO on Monday inked a 660-million-euro contract.
9191**2050
Sugar, industrial contractors, information and communication and basic metals were the most profitable industries in Tehran Stock Exchange from 21st March-5th December 2017 (around 8 months). The mentioned industries gained 73%, 55%, 46%, 44% and 43% respectively during the mentioned period.
Sugar industry had a leading position in terms of return and the main reason behind was to cancel taxes for importing raw sugar to Iran and that time, it would be allowable for companies to import, as a result, cost of goods sold decreased for sugar producers. But nowadays, government has made a new decision not to allow raw sugar to import to Iran, in fact they have a plan to reach self-sufficiency. There is no doubt that this matter can be the turning point of the companies’ future in this industry according to price increment, but high inventory of sugar could be a barrier in order to reach more gain for the companies in this industry. Companies which produce sugar would gain the high return emerged not only from this matter in long term, but also from the growing rate of IRR/USD in the future. According to OECD and FAO forecasts, global price of sugar would raise during 2018-2026. It would be expected that sugar price till 2026 will be more than the average price of the last two decades. However, one of the major problem of the sugar companies is their financial cost, new economy minister after considering different aspects of the high interest rate which was illogical has reached to conclusion that it was because of serious and chronic problems in banking system in Iran. If the minister’s plan on reform in banking system is performed properly, reduction in interest rate would be anticipated. Consequently, all industries benefit from this pleasant event but some enjoy more specifically. As a result, it seems spring is waiting for sugar industry in these winter days.
The second industry which has been gained after sugar industry is industrial contractor which its root has in the growing number of dam constructions in Iran. The companies have gained the most in this industry are Iran Marine Industrial Co. and Ballast Co. that their ticks in the Tehran Stock Exchange are SDRP1 and BLSZ1. SDRP1 is an industrial contractor company with a capital of 36 Million Dollars (1 US Dollar=41,000 Rial) could sell during the current summer 6 times more compare to spring. This matter happened after the company won the new project of South Pars contract in tender.
The third one is information and communication industry and the reason behind their high return lies in the increment usage of network and also the prospect of this industry as well as the start-up companies in Iran is bright.
The forth is basic metal industry, the fact is that the share of this industry is around 15% in Iran’s capital market. This share was fluctuated mostly around 15% to 20% and sometimes it has reached to more than 30%. As a result, it could be as a leader of the Iran’s capital market as we discussed about it in detail in the “Analyzing Basic Metal Industry and Its Derivatives in Iran” article. By this way, it could be probable that Iran’s capital market follow the trend of this sector.
As we explained in detail in the mentioned article, steel pricing in Iran not only follow steel price in the world, but also the value of Iranian Rial against other currencies especially Dollar. To nutshell, sometimes increasing value of Rial agaist Dollar spurred basic metal industry to be increased in spite of decrement billet and bloom prices in the world. By this way, as in recent months both the value of Rial against Dollar and international steel price in the world were incremental, the basic metal index was one of the most effective industry in Iran’s Capital Market.
In the following, you can see some of the companies’ names that gained the most return in the last 8 months in these four industries.
*Earning Per Share
**The financial year of GSHI1 is Sep2017-Sep2018
The Consumer Price Index (CPI) increased 0.3 percent in the month of the Iranian year “Shahrivar” (ending September 22). The inflation rate has advanced 9.9 percent over the last twelve months.
Note: The indices of prices has been calculated based on the new base year 1395 (2016-17) as of July 23.
Summary Results of the CPI for Shahrivar (September 22); (1395=100)
The food and beverages index decreased 1.3 percent in Shahrivar, mainly due to the decreases in the indices for fresh fruits by 8.1 percent, fresh vegetables 12.0 percent, egg 4.3, and poultry 2.8 percent.
The index for tobacco decreased 0.1 percent in Shahrivar, largely due to the decrease in the index for imported cigarettes by 0.2 percent.
The clothing and footwear index increased 0.3 percent, mostly as a result of the increases in the indices for footwear by 0.9 percent, ready to wear clothing 0.1 percent, “clothing materials” and “tailoring, cleaning and laundering wage” each by 0.6 percent.
The housing, water, electricity, gas and other fuels index went up 0.8 percent which was attributed to the advances of the indices for “rental equivalence of owner occupied houses” and “rent of residential houses” each by 0.8 percent, and maintenance and repair services of the dwelling 0.7 percent.
The furnishings, household equipment and routine household maintenance index rose 0.8 percent, largely due to the increases in the indices for furniture and furnishings, carpets and other floor coverings by 1.7 percent, “goods and services for routine household maintenance” and “glassware, tableware and household utensils” each 0.6 percent.
The index for health increased 1.2 percent, mostly as a result of the increases in the indices for hospital services by 2.1 percent, medical, paramedical and dental services 1.1 percent, and medical products, appliances and equipment 0.4 percent.
The transport index went up 0.6 percent in Shahrivar that was principally attributed to the increases in the indices for passenger transport by road by 1.2 percent and operation of personal transport equipment 0.1 percent.
The index for communication turned down 0.8 percent, mostly as a result of the increase in the index for telephone and telefax equipment by 3.8 percent.
The recreation and culture index rose 2.7 percent in Shahrivar, largely due to the increases in the indices for package holidays by 9.1 percent, other recreational items and equipment 1.9 percent, stationery 1.8 percent and audio-visual, recreational and cultural services 1.4 percent.
The education index advanced 0.3 percent over this month, mostly as a result of the increase in the index for private schools and supplementary courses tuition fees by 0.7 percent.
The index for restaurants and hotels rose 1.0 percent, mainly due to the advances in the indices for food away from home by 1.1 percent and catering services by 0.5 percent.
The miscellaneous goods and services index increased 1.0 percent in this month. Increases in the indices for goldsmith wage by 3.4 percent, personal effects 2.8 percent, and personal care 0.7 percent were the major reasons for this rise.
Petrochemical industry refers to the production process of chemical products mainly from available hydrocarbons of crude oil or natural gas. The mentioned industry is one of the strategic industries in the countries which are rich in oil and gas reserves like Iran. The total value of Iran’s non-oil exports in 1395 (previous solar year), 20th March 2016 year-end, was amounted about 43,930 million Dollars. As it is shown in the chart below, the share of petrochemical products in non-oil exports was 32% in this period of time.
The purpose of this article is the performance review of Iran’s petrochemical industry in the first six-month of 1396 (25th March 2017 to 21st September 2017). The share of main regions from total petrochemical productions, amounts of production and proportion of production relative to capacity in these areas are shown in the charts below. It should be noted that, Iran’s petrochemical products mainly classify in four main groups including methanol, urea, ethylene and ethane.
The trends for TEDPIX(Tehran’s Exchange Dividend and Price Index) and chemical industry index during recent five solar years till the end of Shahrivar 1396(September 2017) are shown in the charts below:
As it is demonstrated in the graphs, the trends of TEDPIX and chemical index have a positive correlation. Oil and natural gas prices besides the demand and supply of chemical products are the main factors which have influenced the chemical index and TEDPIX subsequently. The historical data of returns for Tehran Stock Exchange(TSE) and chemical industry return are shown in the table below.
According to the following table, chemical market value is about one fifth of total market value during recent five years, on average. As a result, this fact can confirm the positive correlation between chemical industry index and TEDPIX which has been mentioned earlier in this article.
In the following, according to www.codal.ir , some details of major companies active in Iran’s petrochemical industry have been summarized based on their first six-month performance in 1396(Solar Year).
Iran Chemical Industries Investment Co.
Shazand Petrochemical Co.
Kharg Petrochemical Co.
Zagros Petrochemical Co.
Fanavaran Petrochemical Co.
Marun Petrochemical Co.
Khorasan Petrochemical Co.
Pardis Petrochemical Co.
*Refer to fiscal year ending Shahrivar (sixth month of solar year) 1397
Shiraz Petrochemical Co.
Kermanshah Petrochemical Industries Co.
All in all, total petrochemical production of Iran in the first six-month of 1396 was about 26,848.22 thousand tons which includes 5,576.09 million Dollars of exports and 170,406.23 billion Rials of domestic sales. Marun Petrochemical Company with the domestic sales of 16,971,220 million Rials, Nouri Petrochemical Company with the exports of 650,597.04 million Dollars, Bandar Imam Petrochemical Company with the domestic sales amount of 1,004.30 thousand tons, Zagros Petrochemical Company with the export quantity of 1,470.67 thousand tons and Khorasan Petrochemical Company with the first place in proportion of production relative to capacity, are top petrochemical companies with the best performance report in the first six-month of 1396. It is anticipated that, the most petrochemical companies will announce positive adjustment in their performance for the second six-month period of their fiscal year and that is mainly due to some factors which will lead to increase in prices of oil and commodities such as:
- OPEC agreement to extend oil supply cuts until 2018.
- 80% drop in the transportation of oil from the Keystone Canadian pipeline to the United States.
- some factors on supply and demand sides like supply restrictions of Methanol in Asian countries besides reducing inventory stock level of this product.
Iran is one of the richest countries in the mining sector around the world. Chadormalu Co. is among major companies in the field of producing iron ore concentrate. Nowadays, Department of Environment (DOE) issued the permission of primary discoveries in D19, one of the mines which has been discovered recently in Iran. According to Mohammadreza Bahraman, the head of Iran Mine House, finally it would be possible to initiate exploration in order to get a better estimate of potential capacity available in this mine.
It’s interesting news for Chadormalu (Known as CHML1 in Tehran Stock Exchange) because its current mine reserves could be exploited just for around another six more years. Considering Iran’s 20-year vision plan in steel industry in order to reach 55 million tons production in 2025, totally 150 million tons of iron ore is required to be produced therefore each company should produce more proportionately, including Chadormalu. According to last survey, Iran’s iron ore probable reserves are around 5.1 billion tons, which 3 billion tons of them are proved reserves. These proved reserves are expected to be exploitable only for less than another 20 years. As a result, Iran needs to produce 600 million tons per five years to prevent encountering lack of supply in iron ore and subsequently steel chain.
D19 is located in Ardakan, a town in Yazd province that is 180 kilometers far from Yazd and near other current Chadormalu’s mines. In 2015, Chadormalu and Iran Central Iron Ore Co(ICIOC), won exploitation of this mine in a tender which held by ministry of industry, mine and trade. Primary study shows that there are around 100 million tons reserves of iron ore in D19 and it is expected that the reserves should be more than this. Unfortunately, because D19 is near the home of one of the endangered species which is Iranian cheetah and it is a protected area by Department of Environment(DOE) and according to the Iranian law, DOE is in charge of allowing any exploration activity in these protected areas. Chadormalu’s CEO said the company is obligated to concern about environmental issues and implement plans to preserve this species. He noted this after he got the permission by DOE for new exploration.
In addition, as we discussed about major problems in Iron Ore industry in Iran in the article of “Major Problems in Iron Ore Industry in Iran”, that one of the predicament of iron ore mining companies is governmental interference in pricing. Because iron ore prices in Iran could not soar as prices in international markets, Chadormalu is not able to gain same as international companies. As a matter of fact, domestic iron ore price has not followed the supply/demand mechanism, its price is based on 13% of average price of billet traded in the Tehran Stock Exchange, by this way, it’s an unfair mechanism. Mentioned article discussed about iron ore pricing in detail. Nowadays, Iran has a plan to lift governmental control on iron ore pricing. It would be amazing news for Chadormalu not only by producing more and completing the steel chain, but also by abolishing governmental control on iron ore pricing in the domestic market. By this way, discovering D19 is a vital project for Chadormaul.
At the moment, Chadormalu’s capacity is around 3.5 million tons in pellets, 1.5 million tons in granulated iron ore and 10 million tons in iron ore concentrated, and its mine could support for about 5 to 6 more years, as a result, D19 would be a real blessing for Chadormalu.
To put it in a nutshell, issuance permission for prime exploration in D19 is vital step not only for Chadormalu, but also for all steel chain in Iran. Due to many high graded iron mines located in declared protected areas by Department of Environment, mining companies are able to promote their plans without any environmental damage by implementing green mining and regarding environmental issues.
