Iran – A MINING COUNTRY? IRAN A COMMODITY RICH

Transcript:Iran – A MINING COUNTRY? IRAN A COMMODITY RICH:
Iran – A MINING COUNTRY? IRAN A COMMODITY RICH COUNTRY Finity Asset Farzad Moshfeghi After a 10 year absence, Western investors can re-invest in Iran. Iranian government has created a number of investor friendly schemes : free trade zones, favourable investment terms for foreigners regulatory schemes such as FIPPA and 100% ownership rights Below ground the value of assets has not disappeared. Iran needs to attract foreign investment and western partners to deliver an ambitious program of economic growth 4th largest Oil reserves (150B bbl) & 2nd largest Gas reserves (over 1000 Tcf) Iran accounts for roughly 1% of the world's population yet holds more than 18% of global gas reserves, 10% of global oil reserves and 7% of global mining reserves. Background What is Iran Famous for ? OIL & GAS – Of course Iran has the 4th largest Oil reserves – approx. 150B bbls with hydro carbon fiels both in the south, west and north of the country. Most prominent field is the Ahvaz field with nearly 1M bbl/day. Iran has the second largest gas reserves in the world with approx. 1000 Tcf of proven reserves – most famous is the South Pars field Over 140 oil and gas fields and nearly 300 reservoirse discovered so far. What is Iran Famous for ? 37 billion tonnes of proven reserves and more than 57billion tonnes of potential reserves worth $770 billion - 2014. Iran holds more than 7% of the world's total mineral reserves Large deposits which mostly remain underdeveloped are : zinc (No 1 globally) copper (9th globally - 2011) iron (12th globally - 2013) uranium (10th globally) lead (11th globally). Approximately 5,000 operational mines producing 12 types of metals and 36 non-metal ores 90% of the mines belong to state owned companies (predominantly via IMIDRO) IMIDRO is openly looking for investors and partners to increase production and develop its assets - in particular copper, iron ore and aluminium MINERALS Government companies are complex organizations Most large projects supported or executed by government controlled companies Finance secured via ECA’s and soverign guarantees Lenders did not assume project risk so credit limits / risk management controls could be relaxed. Projects had little incentive to demonstrate commercial viability whilst guaranteed by CBI. How Iranian projects were funded historically Country Facts Population 77.45M GDP 370BUSD GDP Growth 0.5% CPI 12.6% (down from 45) CBI Deficit 2.7% Outlook: Iran is looking for